Digby Localpoint: The Future of Location-based Marketing?

As an enthusiast about the mobile/location-based services space, I’m always excited to hear about ground-breaking new technologies and services, particularly those that are built with businesses in mind. To that end, I couldn’t resist sitting down (virtually) with my friend and director of product and development at Digby, Doug Wick. During our conversation, Doug and I discussed Digby’s latest location-based offering called Localpoint.

<Aaron> What is Localpoint?
<Doug> Digby Localpoint is a SaaS mobile technology platform designed to help retailers deliver a best-in-class mobile app experience for their loyal customers, focused on location-based marketing, analytics, and commerce. It has four components: Venue, Outreach, Analytics, and Storefront. A mobile team simply drops our libraries into their existing app and can then deploy geofence-based notification and rich message campaigns through Localpoint Venue and Localpoint Outreach, and derive powerful insight through Localpoint Analytics. If a retailer doesn’t have a mobile team, we can help them build an app using Localpoint Storefront, which comes pre-wired with the other three components of Localpoint.

<Aaron> Tell me more about Localpoint’s four modules.
<Doug> Sure, let’s start with Venue. This is the ability to drop a geofence around a specific store or public venue like a park, airport, or sports stadium and use that geofence to identify and communicate with people who are there. Campaigns can be set up to either be triggered by an event (like a check-in, product scan, store entry, or store exit) or can be set up to launch at specific times to one or more specific locations. We call those messages “announcements.” Think “blue light special” but much more powerful.

<Aaron> Localpoint Venue is essentially the ability to create your own white label location-based app ala foursquare or Shopkick. Why should retailers do this instead of spending with one of those apps, which have pre-built audiences?
<Doug> Ideally they would do both. Network apps like foursquare and Shopkick are paid media opportunities, which allow retailers to potentially access new audiences. However, a retailer’s own app represents an opportunity to get much closer – literally in the pocket – of their best customers. Retailers who invest in this way won’t be disintermediated and won’t face repeat acquisition costs, lowered share of voice, and lack of data ownership. The best mobile strategies will access new audiences through mediums like network apps, mobile SEM, mobile ads, and other paid opportunities, and convert them to app owners.

<Aaron> What does Outreach Do?
<Doug> The idea with Outreach is large-scale or “market size” geofences that allow you to localize a push notification to drive app engagement and store traffic to a local store. This is to activate loyalists, and can be used in a very complementary fashion with Venue. This particular component is especially interesting for local high-frequency retail models like grocery, convenience, and drug stores as well as quick-serve restaurants. But really, every app should have the ability to get your attention with a message that is location-based.

<Aaron> What about something that is also near and dear to my heart, i.e. analytics?
<Doug> Most mobile analytics out there treat an app like a website and simply track user activity to the app – download, opens, clicks. The true opportunity for mobile analytics is the ability to measure app activity relative to location. Localpoint Analytics allows you to set up geofences that give you web-style analytics for the physical world. Imagine knowing the same things about your retail stores that you do about your website – how many people visited, how long they stayed, what they did on the app while they were there. These are the types of insights that simply aren’t available through any other technology, and will lead to extremely powerful, business-changing insight.

<Aaron> Doesn’t this have the potential to be a little Big Brother-esque?
<Doug> An excellent point and touches on a unique characteristic of Digby’s technology. First, Localpoint Analytics only uses venue-sized geofences for measurement, and our technology only measures the activity of an app installed by an opted-in user in and around those geofences. The rest of the time, the device knows where it is but we don’t. Localpoint simply waits for the device to tell us when it’s close to something we care about. We’ve spent a lot of time and resources investing in patent-pending location detection technology that maximizes accuracy while protecting users by keeping power-draining GPS use at a minimum and ensuring user privacy.

<Aaron> Loaded question here but why do you believe location is such an important part of consumer mobile?
<Doug> We feel that no other single thing you can learn about a mobile user unlocks the unique power of the mobile platform like location. Not only does it help you be contextually relevant, but location also tells you more about a consumer’s intent than anything else. Our goal is simply to help retailers be “where their customers are.” This statement is meant to be taken literally and figuratively.

<Aaron> Tell me more about the Storefront module.
<Doug> Storefront is our most retail-specific Localpoint module, and allows us to quickly bring to life an app that features everything a consumer expects from a retailer: Rich, full-featured product catalog, commerce, and store locator. It is a best-in-class search, browse, and buy experience. And out of the box it is wired to communicate with and leverage the other three Localpoint modules. Many retailers still don’t have apps, and we feel like they might want one when they see what the entire Localpoint platform can allow them to do.

<Aaron> Yes, many retailers still don’t have their own apps. Why should they?
<Doug> I think many business, especially retailers, approach building an app like they are building a website. That is why many retail apps that do exist, even some of the most well-designed ones, look a lot like a miniature version of the full web experience. The fact is that the most important thing that apps can do is something most of them aren’t doing: communicate with the consumer. Communication is still the primary purpose of the phone, and by downloading an app the consumer has already told you they want you to be a part of their daily life. By not taking advantage of that opportunity, businesses are missing out. Our goal is not only to put that opportunity within arms reach, but also do it the right way, with the highly relevant location context that consumers expect.

<Aaron> Doug, Localpoint sounds really interesting, I look forward to seeing a demo soon!
<Doug> My pleasure Aaron. Anyone that’s interested can see more details on our website but I’d be happy to give you a demo soon! And thanks for taking the time to learn more about Localpoint.