In modern retail, mobile devices accompany customers throughout the entire shopping journey. This makes location-based communication one of the most effective ways to connect digital messaging with physical store interactions. As online and in-store experiences increasingly converge, retailers use proximity marketing to influence customer decisions at moments of high intent—when a customer is near or inside a store.
Proximity marketing is a location-based technique that delivers relevant messages in real time, enhancing engagement and conversion rates. Mobile push notifications, alongside SMS and RCS, play a central role by enabling timely, permission-based communication triggered by real-world location signals.
Importantly, proximity marketing is not about increasing message volume. Its effectiveness depends on context, timing, relevance, and user consent.
What is proximity marketing?
Proximity marketing is a location-based communication strategy that delivers messages to customers when they are close to a specific place, such as a retail store, shopping mall, or pickup point.
It relies on technologies such as:
- geofencing (GPS),
- Bluetooth beacons,
- Wi-Fi detection,
- NFC,
- RFID (in more advanced retail environments).
Messages are delivered via push notifications, SMS, or RCS, depending on device capabilities and user permissions.
In retail, proximity marketing is commonly used to:
- increase store visits,
- influence in-store purchasing decisions,
- support loyalty and repeat visits,
- improve the customer experience at key moments of the shopping journey.
Unlike traditional mobile marketing, proximity marketing prioritizes context and timing over reach.
How proximity marketing works in retail
At a high level, proximity marketing connects three elements:
- Location signal (e.g. entering a geofence or approaching a beacon)
- Messaging channel (push notification, SMS, or RCS)
- Customer context (permissions, loyalty status, past behavior, segmentation rules)
When these elements align, a message can be triggered automatically and delivered in real time. Proper audience definition and frequency controls are essential to ensure relevance and avoid fatigue.
Proximity marketing technologies explained
Geofencing
Geofencing uses GPS data to define a virtual boundary around a specific location, such as a store, shopping mall, or event venue. When a customer enters or exits this area, a predefined action can be triggered—most often a push notification, SMS, or RCS message.
Geofencing can deliver messages based on the exact location of the customer within or near the store, enabling highly personalized and relevant engagement.
Typical use cases include:
- store-nearby offers,
- mall-level campaigns,
- curbside pickup notifications,
- event-based promotions.
Geofencing campaigns can be implemented on both Android and iOS devices, with platform-specific requirements such as Firebase Cloud Messaging (FCM) for Android and Apple Push Notification service (APNs) for iOS. Note that geofencing requires users to have location services turned on for accurate detection.
Bluetooth beacons
Beacon technology refers to small devices installed inside stores that communicate with nearby smartphones via Bluetooth. They enable high-precision, in-store proximity scenarios.
Bluetooth proximity marketing leverages beacon technology to deliver targeted notifications, enhance in-store engagement, and gather valuable data about customer presence and preferences.
Common applications:
- in-aisle messaging,
- product discovery,
- loyalty recognition,
- guided shopping experiences.
Beacon-based communication typically requires a retailer’s mobile app and explicit user consent.
Wi-Fi-based proximity
Wi-Fi proximity detects customer presence when a device connects to, or is recognized by, a store’s Wi-Fi network. Wi-Fi proximity also enables retailers to send personalized messages to customers based on their presence in the store. It is often used to identify repeat visitors and support service-oriented flows such as queue management or pickup coordination.
NFC and RFID
- NFC (Near Field Communication) enables intentional, tap-to-trigger interactions, such as accessing product information or redeeming offers.
- RFID, while primarily used for inventory management, can complement proximity experiences in advanced retail setups.
Both NFC and RFID technologies empower businesses to deliver personalized experiences by providing relevant content or offers to customers based on their real-time interactions and location.
Proximity marketing examples in retail
Retailers typically look for practical, proven use cases. A retail app is often used to deliver these proximity marketing experiences. Common scenarios include:
- Entry-triggered promotions A customer enters a geofenced area and receives a limited-time offer or targeted offer encouraging an immediate visit.
- In-store promotions Customers receive location-based in store promotions, such as discounts or flash sales, triggered as they move through specific areas of the physical store.
- In-store recommendations Beacons trigger contextual product suggestions or targeted offers while the customer is browsing a specific category.
- Loyalty recognition on arrival Loyalty members receive notifications about exclusive rewards or benefits when entering the store, encouraging repeat visits.
- Curbside pickup automation Arrival near the store triggers a message confirming order preparation, reducing wait times.
- Post-visit follow-ups A delayed message after a visit offers assistance or highlights previously viewed products.
- Event-based or flash sale campaigns Special promotions are sent to customers physically present during sales events or flash sales, increasing relevance and urgency.
Proximity push notifications: strengths and limitations
Proximity-based push notifications are effective due to their real-time delivery and integration with mobile applications. Their effectiveness depends on three conditions:
- customers’ smartphones have the retailer’s app installed,
- push permissions are granted on customers’ smartphones,
- location services are enabled on customers’ smartphones.
Push notifications are well suited for loyalty-driven and app-centric experiences, but their reach is limited to users who meet these requirements. For this reason, many retailers combine push with other channels to maintain continuity. Retailers also track campaign performance to analyze engagement and optimize their proximity marketing strategies using data-driven insights.
Push also plays a significant role in long-term retention, which is explored in more detail in this overview of push notifications and customer retention.
SMS proximity marketing
SMS addresses the primary limitation of push notifications: reach. Because SMS does not require a mobile app, it enables proximity-based communication with a broader audience. SMS is often used alongside multiple channels such as email, push notifications, and RCS to ensure broad coverage and create a seamless customer experience.
SMS proximity marketing is most suitable for:
- urgent or time-sensitive messages,
- simple calls to action,
- customers without app access,
- fallback communication when push is unavailable.
Best practices include explicit opt-in, strict frequency controls, and suppression after conversion. SMS proximity marketing can also be integrated into larger marketing campaigns, allowing businesses to automate and optimize targeted initiatives for maximum impact.
RCS proximity marketing
RCS (Rich Communication Services) combines the reach of SMS with richer content and interactivity, enabling proximity messaging with rich media and interactive features. In proximity scenarios, RCS can support:
- visual product carousels,
- interactive buttons (e.g. directions or reservations),
- branded sender identification.
RCS proximity marketing helps engage customers by delivering personalized, location-based content that encourages interaction and enhances the customer experience.
RCS works without a dedicated app and is particularly useful for retail product discovery near the store. A detailed explanation of RCS capabilities can be found in this guide to RCS Business Messaging
Benefits of proximity marketing in retail
When implemented responsibly, proximity marketing offers several advantages:
Enhanced Personalization
Proximity marketing enables brands to deliver relevant, location-based messages tailored to real-time customer context, preferences, and behavior, increasing engagement and customer satisfaction.
Increased Engagement and Conversions
By reaching customers at the right place and moment, proximity marketing drives immediate action, higher conversion rates, and repeat purchases through timely offers and loyalty incentives.
Improved In-Store Experience
Technologies such as beacons and geofencing enhance the in-store experience by providing guidance, product information, and service notifications aligned with the customer’s physical context.
Data-Driven Decision Making
Proximity marketing generates actionable data on customer behavior and campaign performance, enabling businesses to optimize communication, operations, and marketing effectiveness.
Improved customer experience
Messages are aligned with the customer’s physical context and intent, increasing relevance and perceived value.
Higher in-store conversion
By influencing decisions at moments of proximity, retailers can encourage immediate action. Conversion rate, alongside open and interaction rates, is a key performance indicator.
Stronger loyalty engagement
Location-based recognition and rewards reinforce emotional connection and repeat visits.
Greater marketing efficiency
Targeting customers who are physically nearby reduces wasted impressions and improves return on investment.
Challenges and best practices:
Privacy and trust
Location-based messaging must be transparent, permission-based, and easy to opt out of. Compliance with GDPR and local privacy regulations is essential.
Technology complexity
Proximity marketing often involves multiple systems. Starting with a single, clearly defined use case helps manage complexity.
Channel fragmentation
Combining push notifications, SMS, and RCS allows communication to adapt to customer capabilities instead of relying on a single channel.
Effective proximity marketing depends heavily on segmentation and behavioral logic, which is why many brands invest in advanced audience segmentation tools.
Proximity marketing within the omnichannel journey
Proximity marketing is most effective when integrated into a broader omnichannel strategy. By combining online and offline data—including offline data such as in-store behavior—retailers can deliver highly personalized proximity marketing experiences. Analyzing purchase history and previous purchases helps trigger relevant messages and product recommendations at the right moment. Online browsing behavior, past purchases, and engagement history can inform proximity triggers, creating a seamless connection between digital and physical touchpoints. Proximity marketing actively enhances the retail environment by connecting digital and physical experiences, making shopping more engaging and tailored for customers.
Choosing proximity marketing software
When evaluating platforms, retail businesses should consider their specific needs and prioritize solutions that support:
- multiple location triggers (geofencing, beacons),
- multi-channel delivery (push notifications, SMS, RCS),
- consent and preference management,
- segmentation and suppression rules,
- real-time analytics and attribution.
To successfully implement proximity marketing, key features include technology investment in tools like beacons and geofencing, robust privacy controls, and effective delivery methods such as mobile push notifications and RCS messaging.
Final thoughts
Proximity marketing works when it respects context: the right customer, in the right place, at the right moment, through the right channel. By combining push notifications, SMS, and RCS, retailers can deliver timely and relevant communication that supports both customer experience and business outcomes.
Used responsibly, proximity marketing is not a tactical add-on—it is a core component of modern retail communication.