Lessons Businesses Can Learn From the Success of Pokemon Go

Make it easy, make it relevant, make it fun and allow consumers to interact. In other words, engage them on their terms, not just yours. JL

Nitin Mangtani comments in Forbes:

Pokémon Go demonstrates that consumers engage with interactive technologies such as augmented reality and location services. These must be incorporated into marketing strategies in a meaningful way to engage customers, increase loyalty and drive sales. (Go) allows users to connect the real with the virtual world, and connect with a brand (as should) apps connect the in-store and online experience. (Go) is the first omnichannel experience done right.
So what’s your level on Pokémon Go? It’s safe to say that, by now, everyone has played if not heard of Pokémon Go, the augmented reality game from Niantic Labs (in which Nintendo and Google are investors). The game has users finding and catching Pokémon using real-world locations. Launched on July 6th, the game already boasts more than 26 million daily users, although I suspect that by the time you’re done reading this article, that number will be significantly higher.
There are many reasons why this game is so wildly popular and has resonated with so many millions of people worldwide. It’s social, it’s nostalgic, it gets you off the couch, it takes you to places you’ve never been and it’s just plain fun. Its millions of users are fully engaged and are strengthening an already solid brand. So what can retailers learn from this mega-success that can help them engage deeper with their customers, leverage their brand and increase sales? I believe there are three important lessons:

Photo: Nintendo/Niantic

1. Focus on Building Mobile-First Experiences – Pokémon Go was designed as a mobile app. It wasn’t a desktop game that was retrofitted for the smartphone. I feel stronger now than ever that retailers must focus on developing, from the ground up, customer-centric experiences via native apps rather than relying on traditional desktop, e-commerce or mobile web browsing.
There are a number of reasons why. First, thanks to successful mobile leaders like Uber and AirBnB, the newest generation of shoppers are “mobile-first”, meaning they are likely to first interact with a brand via mobile rather than any other form of browsing or shopping.
Second, native apps use the functions inherent in a smart phone to improve functionality and create the “experience”. Native apps use the device’s camera, gps, notifications and other features that would otherwise be unavailable when accessing a brand through its mobile site.

Finally, native, dynamic apps are faster than mobile browsing- pages load in fractions of a second rather than in multiple seconds. And faster speeds lead to better engagement, which leads to higher conversions. Conversions equal sales – and that’s the name of the game in retail.
The “mobile-first” mentality has been widely (and successfully) adopted in other industries such as social, transportation, travel, music…and now gaming. Pokémon Go should be a wakeup call to the retail industry to more broadly adopt this “mobile-first” mindset.
2. Blending Online and Offline is Key - For years, retailers have sought the holy grail of “omnichannel” or “multichannel” retailing in which they offer their customers seamless browsing and shopping by creating one brand experience that can be enjoyed whether in store, at home on a desktop, browsing a catalog or walking the streets with a smart phone. Unfortunately, this dream remains somewhat elusive as sales channels continue, to a large degree, to be kept separate.
Pokémon Go, however, has shown us that it is possible – and incredibly popular. By using a mobile device and a native app, Pokémon Go has blended the offline with the online, the real with the virtual. Users navigate through their real world (using their smartphone camera and a database of real-world locations) and encounter virtual Pokémon. Once Pokémon are found and captured, users enter an immersive virtual world where they can join teams, fight battles and earn coins, all while walking the streets of their real world. The two worlds are blended seamlessly and are, as evidenced by the hordes of loyal users, incredibly engaging. Retailers need this same level of engagement – and to get it, they must rely on thoughtfully developed m-commerce strategies to blend their worlds – their channels – into one delightful, rich experience.
Much like Pokémon Go allows users to connect the real world with the virtual world, so too should retail apps connect the in-store and online experience. Pokémon Go is the first omnichannel experience done right. Now retail should follow.
3. Find Innovative Ways to Drive Consumer Engagement – The original Pokémon started off as a video game and evolved into trading cards, tv shows, movies, comic books and toys. While successful all along, it is most certainly this newest iteration of the brand that has catapulted it to cult-like status. Why the change? Because Pokémon Go, unlike the original Pokémon, utilizes innovative technologies (such as augmented reality, which superimposes virtual objects into the real world) to engage its users.
Brands and retailers must do the same. AR, along with other burgeoning technologies, are the future of retail as they allow consumers to connect with a brand. AR is slowly being adopted in the beauty industry because it allows users to virtually try on makeup and hairstyles. Several eyeglass companies also use AR to allow users to see themselves in various frames before purchasing. AR is starting to find a home in retail and companies better hop on the bandwagon. Goldman Sachs recently forecasted that AR, along with virtual reality, would account for $80 billion in hardware sales by the year 2025.
Geo-fencing is another growing technology that retailers shouldn’t ignore when developing their m-commerce strategies. Geo-fencing uses GPS to define geographical boundaries; triggers can be set up so that when a device enters an area, notifications, incentives and promotions can be pushed to the user in an attempt to drive traffic to the store. These notifications are timely, relevant, location specific and dynamic. They are designed to engage the customer, establish loyalty and increase sales.

Pokémon go clearly demonstrates that consumers respond to and engage with interactive technologies such as augmented reality and location services. These and other emerging technologies must be incorporated into retail marketing strategies in a meaningful and relevant way to engage customers, increase loyalty and ultimately drive sales.
If Pokémon Go has shown us one thing, it’s that the trend toward social experiences is hotter than ever. In the retail world, we must also provide our customers with a similar experience and there is no question that mobile is the answer. Mobile provides the unifying experience that brings all forms of browsing and shopping together. In creating this experience, retailers and brands need to migrate toward a “mobile first” mentality, which will allow them to truly become omnichannel and engage with their customer like never before.