How Canadians Feel About Location-Based Rewards

Most Canadian shoppers are using their smartphones to assist them while shopping and would like businesses to send them location-based offers and rewards, reveals a new report from the Canadian Marketing Association (CMA) and LoyaltyOne.

56% of those surveyed have used beacon technology at some point while shopping and overall consumer awareness of beacons and location-based services (LBS) technology is high at 86%.

“Today’s consumer is even more empowered thanks to the advances in mobile technology,” says Sandra Singer, Vice-President of Research, CMA. “Our research indicates shoppers are already using their smart devices in-store which indicates a clear opportunity for Canadian businesses to directly market to customers through mobile devices.”

62% of shoppers said they use their mobile devices to assist them with their in-store shopping experience, and this increases at the millennial generation with 80% using their device. 45% of those surveyed indicated they have used a device in-store that has led them to make an immediate purchase.

“Canadian retailers as a whole have approached beacon retail technology with caution,” notes Michael Cohen, Director of Mobile API & Analytics Innovation, LoyaltyOne. “Beacons now have consumers’ attention and we are seeing more and more retailers testing the waters.”

For the Canadian businesses that are already using beacons and LBS technology, the study found that frequency of LBS is a big reason consumers uninstall or opt-out of receiving beacon notifications—many respondents said they have uninstalled or opted out of push notifications from a retailer’s app due to a high frequency of messaging.