Why Geotexting Won't Save Retail

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and senior technology analyst Eric Bleeker discuss topics across the investing world.

In today's edition, Eric and Austin discuss a trend in retail that looks great on paper, but is actually a bunch of hot air: geotexting, or geofencing. This strategy involved sending consumers opportunistic text messages when they are in a certain proximity of stores. The messages are store-specific and would highlight recent sales or discounted items. While this sounds great, Eric and Austin see it as highly ineffective. For one, there is no guarantee you'll be getting consumers when they are in a "shopping mood," and repeat texts when they are simply driving by a location could turn them off entirely. Couple that with an already low uptake for services like this, and this is far from the white knight that bricks-and-mortar retailers may have been hoping for.

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At the time thisarticle was published Austin SmithandEric Bleekerhave no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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