GeoMinds: The On-Demand Revolution is Just Down the Road
Location, personalization, and responsiveness are what matters, writes GPShopper CEO Alex Muller.
Over the last few years, consumers have started to adopt an “on-demand” mentality. From the meager beginnings of ordering items over the phone to the surging popularity of online and mobile shopping, one thing is clear: Consumers have come to expect on-demand delivery.
The arrival of location-aware mobile applications such as Uber, Open Table, Fandango, and Twitter has ignited this explosion in on-demand services. Everything we do now has a real-time, location-based component. Even major existing brands are getting in the game. You can expect to see most major brands and retailers embracing the popularity of these real-time interactions to drive consumer behavior.
Though over 90 percent of shopping is still done in-store, you’ll see retailers looking to drive location-based demand with these applications as well. High demand products will be reserved by location and using a mobile application. Service providers who have peak times, like trainers and gyms, will provide on-demand access for off-peak times, to generate incremental revenue.
This shift towards the on-demand business model generates dynamic pricing, which can drive incremental revenue for service items, restaurants and other places where the value of a product is constrained by peak times. The new foodie might see a 30 percent cost reduction if they take the 5:00 p.m. table at that otherwise expensive and crowded restaurant. “Surge Pricing” — a term that Uber has made commonplace — can also have its inverse in discounts. Would some Uber drivers be willing to discount pricing in the case where supply exceeds demand? Would Fandango work with movie theaters to provide cheaper seats Monday through Thursday, or off-peak versus weekend?
In nearly all of these cases, proximity, personalization, and responsiveness matters. Connecting willing consumers to available service providers is dependent upon your retail locations, your consumer and the context between both of those factors. Ensuring all three elements are part of the equation will increase revenue while enhancing the customer experience.
Location is an element that not only matters for the retailer or service provider, it is actually vital to growing business and breaking away from the competition. On-demand services are migrating quickly from a feature that delights to a feature that is expected. Getting this right means connecting to new consumers who may not have otherwise purchased your goods and the opportunity to gain traction in shifting market places. It ultimately means investing in your mobile application strategy to ensure it can support this new style of consumer experience.
**Editor’s Note: Our “GeoMinds” opinion series features posts written by outside contributors from all parts of the GeoMarketing community who want to share their views of the trends, issues, problems, and solutions changing the online-to-offline advertising and marketing landscape.