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PunchTab Study Reveals Top Consumer Concerns for Retailer Marketing via Mobile Tracking

Written on
Jul 23, 2014 
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Press Release  |

(ADOTAS) Palo Alto, CALIF – July 23, 2014 – PunchTab, the leading omni-channel engagement and insights platform, today released a new study on consumer sentiment related to retailer mobile tracking. More than 1,100 consumers participated in the study, which reveals the top consumer concerns for the marketing tactic, which uses mobile devices’ GPS to track their location and offer relevant, real-time information and offers based on that information.

The report also reveals the types of retailers where consumers perceive mobile tracking as beneficial, as well as ways for retailers to overcome consumer concerns.

Top consumer concerns for mobile tracking

Privacy was the top consumer concern related to mobile tracking, with more than 50 percent of consumers citing it as the reason they would not want a retailer to know their location. Excessive marketing provided the next largest reason for consumer concern, with more than 36 percent citing the frequency, intrusiveness, and irrelevant messages as deterrents.

Overcoming mobile tracking privacy fears

Despite privacy concerns, a large portion (27%) said they would likely allow mobile tracking if given the right incentives. The most popular reasons for sharing their locations were coupons and offers (88%), shorter checkout times (72%), and targeted alerts about sales and products they like (69%). Fifty-eight percent said they would value getting their points status, or rewards availability, via their mobile device.

Surprisingly, 50 percent of consumers “on the fence” about their likelihood of allowing mobile tracking were more likely to try it as the value of the incentivized coupon increased.

In addition, the report details the type of retailers that men and women would be most likely to allow mobile tracking. Among those who were positively inclined towards tracking, their preferred retailers were Superstores (84%), Department stores (78%), Grocery (74%), and Home improvement stores (60%).

“While mobile technology allows marketers to deliver relevant and timely marketing messages, privacy concerns have traditionally carried more weight,” said Robyn Hannah, VP of Public Relations and Communications at PunchTab. “What we’re seeing in this report is that consumers aren’t hesitant about mobile tracking just because it’s new and different. Some of the other main drivers include fears around receiving excessive and irrelevant marketing messages. These fears can be allayed with incentives, but the catch is, marketers need to adopt a data-driven approach to understand where the ‘sweet spot’ lies. And by connecting with early adopters marketers will drive broader consumer acceptance.”

To download a full copy of the report or to view the methodology involved, please visit:http://engagement.punchtab.com/research_brief_mobile_tracking_consumers

About PunchTab, Inc.

Founded in January 2011, PunchTab is an omni-channel engagement and insights platform enabling agencies and brands to create dynamic experiences that engage consumers across any touch point, track and understand user behavior, and optimize for more effective marketing initiatives and communications. PunchTab’s customers use the company’s flexible solutions to deepen audience engagement and build awareness by leveraging everything from social sharing, UGC and awareness campaigns, to sophisticated loyalty and engagement programs. PunchTab offers both an out-of-the-box product and a fully customizable, white-labeled solution that can reward any action with virtual, social and real-world rewards.

Based in Silicon Valley and led by YouSendIt founder Ranjith Kumaran and early YouSendIt engineer Mehdi Ait Ofkur, PunchTab is funded by Mohr Davidow Ventures, The Social+Capital Partnership, Crunch Fund, Venky Harinarayan and Anand Rajaraman. For more information visit www.punchtab.com.





Adotas was not involved in the creation of this content. All information is supplied by the respective companies and/or the communications professionals that represent said companies. Adotas accepts no responsibility for any false claims, statements, opnions or data included therein.

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