Gen Alpha consumers have some fascinating traits that set them apart from previous generations. As the children of Millennials who witnessed or contributed to technological growth, they are equipped with the tools and know-how to thrive in a highly digital society.

How can retail and hospitality business owners adapt their proximity marketing campaigns to anticipate and respond to their needs? Read on to find out!

First things first, let’s clear up the buzzword of the day: what is proximity marketing and why do we need it?

Proximity marketing solutions (or local marketing) can be any type of in-store advertisement such as traditional or digital signage. Smartphone notifications based on GPS location or other tracking methods also fall under this umbrella term.

Nowadays, we mostly refer to proximity marketing when we talk about the wireless distribution of ads according to particular shopping locations.

The main types of indoor location technologies which retailers can use are:

• Wi-Fi technology
• Bluetooth Low Energy (BLE) technology
• Geofencing technology
• NFC tags and QR codes
• GSM-based systems

1. Wi-Fi Technology

   Wi-Fi-enabled systems can detect signals from any device equipped with Wi-Fi. They are often used in retail to detect the number of devices present in a shop, detect shopping behaviour patterns, and optimise marketing campaigns.

2. Bluetooth Technology (also called iBeacon)

   Ad distribution can easily be done when a Bluetooth-enabled device is located within a specific range of a transmitter.

   Beacon software solutions can also rely on consumers installing certain applications on their mobile devices that allow them to engage with retail companies. When shoppers are within a certain distance of a ‘beacon’ (transponder) inside a venue, the app automatically displays an ad or a personalised offer on their device.

   The issue with Bluetooth proximity marketing is that many people falsely believe they need to switch off Bluetooth to save battery life (which may not be the case with tech-savvy Gen Alphas). This is, in fact, not necessary because smartphones are equipped with Bluetooth Low Energy (BLE), which uses only 1 to 3% of the battery's capacity per day.

   To overcome this problem, retailers sometimes set up call-to-action signage to prompt shoppers to enable their Bluetooth settings in order to receive free content.

3. Geofencing Technology

   Geofencing uses GPS coordinates to determine a consumer’s proximity to a particular region (a virtual perimeter or geofence).

   Basically, an internet enabled device with GPS allows a shop to deliver specific localised content if the user (customer) has opted for push notifications.

4. Near Field Communication tags (NFC) and Quick Response codes (QR)

   These are some of the most popular and appealing marketing strategies. With NFC and QR codes (see how they differ here), consumers choose if they want to receive a marketing message from a company by scanning a code.

5. GSM-based systems

   When it comes to retail, shop managers can send targeted promotions via SMS and see their customers’ shopping durations.

Keeping consumers' attention is more challenging than ever in a world that continually bombards us with news and other forms of information.

That is one of the reasons why personalisation is so important in today's retail environment, particularly when it comes to in-store advertising. It can make a tremendous difference in how customers perceive commercial content.

Furthermore, in-store campaigns can be highly effective because most buying decisions occur spontaneously at the shopping location.

What you need to remember is that the more relevant an offer you can create for your customers, the better they will perceive it — which can lead to successfully closed sales.

Local marketing provides you with adequate platforms and tools to engage and connect with your customers on a level they are receptive to and enjoy.

Consumers, in the end, want less spam and more utility. This has been the case with Millennials, and the Alpha generation is likely to want quality information as well.

According to Australian social analysts at McCrindle Research, Gen Alpha individuals are or will be born between 2010 and 2025.

The gamification of education and interest in sustainability and technology are just some of the things that define these future decision-makers.

See below a few of their most important traits, as well as what to keep in mind when you design various marketing messages.

• Researchers describe generation Alpha individuals as ‘upagers’ when it comes to physical and psychological maturity, as well as social and commercial sophistication.
• They are the most technologically inclined. Most children have access to a mobile device from a young age. It’s safe to say that interacting with AI or VR software will feel natural to them.
• As a downside, they will be less proficient in practical skills, assessing risks, and setting or achieving goals.
• The core values of Gen Alpha customers (inclusivity, representation, sustainability, authenticity, and connectivity) impact their shopping habits. Be ready to learn the art of humanising your marketing messages.
• They are not just consumers but also creators and trendsetters. They already influence their parents’ buying decisions.
• They will have great purchasing power, be financially literate, and know all about digital wallets and transactions.
• They are likely to prefer modern forms of marketing over traditional.

Let’s put two and two together and see how you can adapt the tools and technology to connect with gen Alpha consumers.

First of all, you would need to hone your emotional and cultural intelligence skills in order to create an authentic, relatable, and inclusive proximity marketing campaign for a culturally diverse demographic.

Messages with a concrete feasibility appeal (that emphasise cost or convenience) are also likely to draw the attention of these individuals.

Remember to occasionally send out meaningful educational messages and showcase your efforts in the social or environmental issues your brand cares about — no matter how big or small. Using a commercial platform like this will not only make generation Alpha consumers happy about their purchases, but you will set an example for your competitors.

In terms of humanising your ads, be ready to take your consumers “behind the scenes” of your company, build a connection through social media, and show gratitude.

Another factor to keep in mind is privacy. Many people can perceive local marketing as uncanny or even intrusive. That’s why you must reassure your gen Alpha customers that you abide by the GDPR guidelines when you collect data about them.

Here are two effective ways Storeplay Radio can contribute to location-based marketing and engage future consumers:

Interactive digital signage transforms a simple shopping spree or coffee break into a fun and engaging experience, while the business improves its revenue.

StorePlay also uses beacon technology to customise your ad content according to various consumer-related data points.

StorePlay Connect is a shopping companion mobile app that helps you distribute your proximity marketing content in a unique and interactive way, such as using Augmented Reality (AR).

When it comes to generation Alpha in particular, you can also appeal to their appetite for gamification by allowing them to be the DJs in-store and play their favourite music.

Proximity marketing solutions are readily available to engage your desired audience and stay on their minds long after a shopping spree.

In this post, we have outlined the data we know so far regarding gen alpha customers and the location-based marketing tools they are most likely to respond to.

StorePlay is here to elevate your campaigns above the marketing clutter that’s out there. Get in touch with us today to see how easy location-based marketing can be with Storeplay Radio by your side!