Top Retailers Launching, Testing Location-Based Apps

By Hannah Ash, contributing writer

A 2013 report from PointInside shows that apps with in-store modes, or that are location based, substantially increase customer engagement and interactions with the retail store in which they are shopping. This year, retailers are turning up the heat on their apps by introducing more location-based features. Location-based features, or in-store modes, include interactive store maps, detailed information on location of in-store products, and customized maps to help a customer quickly find products on their shopping lists.

Retail department store chain Lord & Taylor is leveraging the resources of third party app developers to engage customers in a way that, according to its senior vice president of corporate strategy Ryan Craver, their own apps simply can’t. Craver comments, “we do need to have a big presence in mobile because everyone has a mobile phone and is doing research.” To gain greater presence, the retailer has partnered with SnipSnap to send nearby passerby enticing store coupons; SnipSnap has a following of over 3 million users, according to its chief executive officer Ted Mann. Also this month, Walgreens-owned drugstore chain Duane Reade launched iBeacon-integrated apps in ten of its locations; the integrated apps will alert customers when they are approaching a Duane Reade, send coupons and suggest products based on in-store location and previous shopping history.  

New research from Deloitte shows that 50 percent of customers are using their mobile phones as a shopping resource for in-store guidance, and retailers are clearly taking notice. Calvin Peters, PR/Digital Communications Manager for Walgreens, commented, "The Duane Reade app plays an integral role in our omni-channel customer engagement strategy. Mobile interaction is at the core of our social media success as mobile and social are intrinsically linked; the addition of these new 2.0 features, as well as the integration of iBeacon technology, will continue to fuel our digital customer experience strategy.” Internet giant Google just announced that Google Now will deliver retail alerts and information to app users’ phones based on a consumer’s proximity to a certain store. As retailers and ecommerce innovators continue to craft seamless shopping experiences, especially on mobile platforms, the number of in-store shoppers who rely on mobile devices as a shopping aid is poised to soar.