Rob Friedman is the executive vice president of Digital Element Inc., an Atlanta-based provider of IP intelligence and geotargeting solutions. To submit a comment about this story, please e-mail the editor.
The Internet provides an opportunity for retailers to become instantly global, a seemingly daunting task when one considers the geographically dispersed nature of the online audience overall.
Companies can tap IP Intelligence (the anonymous data derived from analyzing an Internet user's IP address, including city-level location) to enhance a host of Internet marketing activities, creating an instant connection with Web site visitors by presenting them with relevant content and products. IP Intelligence provides Web sites with real-time access to visitors' needs and interests.
Targeting products and content based on IP intelligence effectively leads to a strong bond with consumers, who more often than not will return.
When it comes to online content, a universal approach simply doesn't work for businesses, especially online retailers. Companies need to define themselves on the Internet just as they would in the retail marketplace. To succeed on the Web, retailers need to localize content to increase their reach, relevance and response to their Web sites.
The Internet channel highlights the overall lack of "local" brand awareness that plagues many retailers. The majority of today's consumers are multichannel shoppers. Even though they may use each channel differently — some use the Internet for information and the retail store for sales (or vice versa) — they still engage in a shopping experience within their local communities. And, to a marketing team, enhancement of the user experience is easily the most important aspect to the retail-purchasing process.
Tailoring content and messaging based on location with non-invasive demographics provides a true representation of product effectiveness and market fit.
From a promotional perspective, IP Intelligence provides for a dedicated, market-centric approach to gaining market share, either where retailers already have a wide footprint or where they may not. Targeted content and product offerings also ensure a deeper knowledge of a retailer's customer base (store customer versus Web customer). Being in a position to increase revenue in-store through online promotion is a win-win proposition for most retailers.
Additionally, with IP Intelligence, retailers can begin to set pricing, sales and promotional savings for areas where a lift is needed or where competition is gaining an edge. Importantly, IP intelligence can be used even in the absence of customer-supplied information — there's not a need to ask for a customer's state or city on the Web site.
Web sites are beginning to realize the power of community — why not leverage IP intelligence to allow users to take part in communities consisting of other users with similar interests? (i.e., REI: Colorado/Tahoe skiing ads, promotions; Eddie Bauer: sailing, fall colors, Northeast living; and Gap: trendy, commuting, all-weather fashion).
In order to be successful online, retailers need to realize there's more to just collecting the number of page views and counting the abandoned shopping carts. IP Intelligence can help retailers grow by providing tools to help them understand and communicate more effectively with customers.
