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Making money from WiFi

Retailers can use the provision of connectivity to shoppers as a means of gaining more relevant information about them, thereby enabling better service and driving more sales.


Johannesburg, 02 Mar 2018
Quentin Daffarn, MD, UC Wireless.
Quentin Daffarn, MD, UC Wireless.

WiFi is so ubiquitous in the modern world that it is virtually taken for granted that wherever you are, be it the local coffee shop or a major mall, it will be available. Moreover, such connectivity is usually provided free of charge to users. This is all well and good, but the organisations providing this access largely under-exploit the value that can be obtained from the provision of this free connectivity.

Quentin Daffarn, MD at UC-Wireless, points out that when users wish to access a mall's free WiFi, they generally have to provide some type of credentials - usually by entering their phone number or e-mail address, logging in via social media accounts or by completing a short questionnaire.

"However, while the provider asks for these credentials, they seldom think to utilise this information to assist them in delivering even more effective services to either their clients within the mall or the shoppers themselves. With the right WiFi solution, one that incorporates analytics, it becomes possible to customise and personalise offerings according to individuals," he says.

"For example, a customer that regularly buys from the mall's coffee shop could be presented with a discount voucher as he enters the shopping centre and logs on to the WiFi. This kind of personalised approach not only makes customers feel special, but can improve revenue generation for tenants too."

On the other hand, continues Daffarn, it also provides the mall owners with important information. They can, for example, immediately calculate how many people are in the mall - or even in one particular area thereof - and, thanks to geo-location services, are even able to determine where individuals are. "We can navigate clients to their desired shop and also assist those in wheelchairs to reach their required destination. There's no need for clients to download an application to access this functionality, the navigation works off their mobile device's Web browser.

"There is also the safety and security perspective that comes with this knowledge. If you are always aware of the number of people in the mall and where they are at any given point, in the event of a disaster, it becomes a simple matter to direct them to the nearest exits and to ensure that they all get out safely.

"This same knowledge can be beneficial from the point of view of clearly understanding the mall's foot traffic. It becomes possible to track exactly how many shoppers walked past a particular shop on a particular day, and to understand which areas of the mall see the most traffic. We experienced a situation recently where a client - a sports bar - used this type of tracking to discover that its customer base was not actually male-dominated, as had been previously thought to be the case. Once they realised they regularly hosted a large contingent of women, they were able to change their bar stocking policy to stock more drinks that appealed to their female customers. This, in turn, boosted both their service and their revenue."

Another benefit that retailers can gain from this, continues Daffarn, is the ability to understand the dwell times of visitors, so it can be determined exactly how they spend in a particular part of the mall. This allows them to get a clearer picture of whether the merchandise in this area is good and whether the stores' marketing is working.

"The next step is to take things to the level of delivering personalised, geo-location based adverts and marketing. If you know an individual is in a specific area, you can target them with marketing and offers directed specifically at the individual. As an example, a person inside a particular fast food restaurant could be sent a discount voucher to encourage them to buy a dessert. Furthermore, you can target campaigns aimed at specific groups, such as by gender or age group, ensuring you find the right people with the right, targeted message."

It is for these reasons, he adds, that mall owners need to think beyond the simple approach of supplying free WiFi to shoppers, simply because it is the done thing.

"It is really important to ensure that, when implementing a WiFi solution at a mall, it is one that has analytics and business intelligence built into it. In this way, you deliver not only the connectivity customers demand, but also WiFi that is designed to provide you with access to a vast array of user information that can be mined to deliver next generation services - otherwise all you are doing is giving Internet access away for free," he concludes.

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