Smart City Use Case Library
Supporting businesses

Digital Town Hub IoT


Introduction

This use case is from South London Partnership – InnOvaTe “IoT” Project.

Outcome
To support local business growth and improve business rates retention through equipping small businesses with digital tools and support.

Sectors
Local authority, Business Improvement District (BID), High Street team, public sector.

Key Stakeholders
Mayor of Croydon, various local business districts i.e. South Norwood, Purley and Thorton Heath, local businesses, High Street team.

Summary

Overview

The creation of “digital town hubs”, made accessible via a smartphone app for residents and businesses in three high streets in the Croydon borough, namely: South Norwood, Purley, and Thornton Heath enabling direct engagement with residents/customers/visitors to the town centre to promote their businesses, and to provide information about local traffic, construction, re-routing, as well as local events and offers in real time.  The hubs promoted local businesses, events and offers to residents with the primary idea being to drive back local spend into the independent shops. South Norwood and Purley were supported by the Croydon High Street teams, whereas Thornton Heath was supported by the supplier directly. 

The project sits as part of Croydon Council’s strategic vision for Digital Place and was accelerated by the impacts of the pandemic which clarified the need for a real-time digital platform to enable businesses and residents to engage locally.

About the Author

The InnOvaTe Programme is an Internet of Things initiative by South London Partnership (SLP) to “pilot and research” IoT across the 5 London boroughs of Croydon, Merton, Richmond upon Thames, Sutton, and the Royal Borough of Kingston upon Thames.  The programme looks at ways to generate economic growth, support local businesses, help people live better, healthier lives and assist with addressing the climate emergency. The project assessed 150 IoT ideas for the councils concerned, implementing 48 of them successfully over 18 months. The programme was formally completed in March 2023.

Case Study Challenge 

Many businesses in South Norwood, Purley, and Thornton Heath lacked digital engagement platforms, making it difficult for them to reach and retain customers during and after the pandemic. The project intended to increase local spending in independent shops and promote economic recovery in secondary business districts in need of regeneration. The digital hubs were designed to foster a stronger sense of community by providing real-time information on local events, offers, traffic, and construction, thereby connecting residents, businesses, and visitors. The initiative aimed to collect and use local data to support local authorities and businesses, providing insights that could drive decision-making and enhance the overall well-being of the community.

Implementation

Use Case Design Objectives

The targeted areas were secondary business districts in need of regeneration. For example, in South Norwood, only 70 of the 190 local businesses have any online presence at all. This scheme can therefore truly open up access for these businesses to a wider local audience, which will hopefully drive significant engagement that would otherwise be unobtainable. 

Some objectives of the project included:

  • support local businesses without an online presence
  • drive local economic recovery
  • enhance community engagement
  • utilise realtime local data for community benefits
  • encourage highstreet footfall by enabling new digital channels to drive traffic to offers and special deals

Commissioning (budget/procurement)

A tender (RFQ) opportunity was run in February 2021. Loqiva was awarded as the winning supplier with an overall cost in the range of £100,000 to £200,000, with the contract lasting for an initial period of one year.

Deployment (what / who / where / how long)

All three Croydon based town hubs in South Norwood, Purley, and Thornton Heath, were live as of January 2022, and sensor installation progressed well. Croydon staff had access to the dashboards. The goal at the time of launching was 20 businesses per hub.  Within the scope of the trial, they managed to have more than 25 businesses signed up, and more than 2,000 app downloads. The aim was to hit 1,000 app downloads per site target.  The pilot ran until the end of 2022.

Technology Implemented

Implementation of LoRaWAN enabled footfall sensors, combined with an online engagement portal.

Outcomes

Results / Key Findings

Loqiva, the supplier, provided significant support to businesses, helping them understand and utilise the digital platform. Regular check-ins and support were essential, particularly for digitally inexperienced business owners. 

It generally took three to four visits for businesses to appreciate the potential benefits, highlighting the importance of building trust through consistent engagement. The presence of council officers alongside Loqiva representatives helped reduce reluctance from local businesses. 

Council officers were pleased with the progress and outcomes of the pilot. The trial saw over 25 businesses sign up and more than 2,000 app downloads, nearly meeting the target of 1,000 downloads per site. 

Awareness of the app spread through social media, word of mouth, and direct outreach by staff. The involvement of the Poet Laureate, who created promotional videos, also added credibility and visibility. 

Post-trial, the project transitioned to a zero-finance contract, with Loqiva maintaining the platform independently. The council facilitated introductions to potential new regions for Loqiva to expand. 

The app facilitated connections between businesses and the community, offering opportunities for network building. Features such as direct messaging and potential payment integration were under development to enhance functionality.

Footfall sensors and the app’s engagement data provided valuable insights. Businesses could access anonymized heat maps and demographic information, allowing them to push geo-fenced alerts and offers to nearby customers. 

Many small business owners initially lacked digital literacy and were sceptical about the technology, fearing surveillance.  One-on-one interactions were crucial for building rapport and encouraging participation. The trial’s success demonstrated its potential for other regions. Loqiva’s expansion across the UK, including the Outer Hebrides, underscores the interest in and usefulness of such digital platforms for local communities.

In summary, the initiative successfully demonstrated how digital tools could support local businesses, enhance community engagement, and drive economic recovery, particularly in the wake of the COVID-19 pandemic. The project’s ability to build trust, provide consistent support, and offer valuable data insights were key to its success.

Benefits / Usefulness of Data

The data collected primarily from footfall sensors installed in local businesses and through the mobile app was instrumental in driving engagement and providing valuable insights. Key benefits included:

  • Enhanced Business Visibility: The app promoted local businesses to residents and visitors, driving traffic to the high streets and encouraging local spending.
  • Real-time Engagement: Businesses could use the app to push geo-fenced alerts and offers to potential customers nearby, increasing immediate engagement.
  • Community Connection: The app facilitated connections between businesses and the community, helping businesses that lacked online presence before.
  • Anonymized Data Insights: Businesses accessed heat maps showing foot traffic patterns and demographic information, enabling better decision-making and targeted marketing.
  • Marketing Avenue: For businesses relying on food delivery apps during the pandemic, the app offered a new marketing channel to retain more product margins.
  • Broader Applications: The success of the trial demonstrated the potential of such platforms to help other localities connect residents and visitors through a town hub, prompting Loqiva to offer their platform free of charge to further support community engagement.

Lessons Learned

The project revealed several important lessons:

  • Digital Literacy Challenges: Many small business owners lacked the technology skills needed to fully grasp the trial’s potential. Overcoming this required significant one-on-one engagement to build trust and understanding.
  • Technology Scepticism: Initial fears about remote sensors being used for surveillance needed to be addressed through personal interactions and assurances.
  • Essential Support: Ongoing support and tutorials were crucial in helping business owners create content and use the platform effectively.
  • Resource Limitations: Croydon’s financial difficulties hindered the project, but Loqiva’s support helped bridge the resource gap and maintain momentum.

Conclusion

The trial was deemed highly successful, marking a significant achievement as the largest initiative of its kind in the UK. It successfully connected residents with local businesses, fostering community ties that were crucial post-COVID-19. The engaged businesses benefited greatly, and the project’s success inspired other councils to adopt similar digital platforms. Loqiva’s expansion across the UK, including remote areas like the Outer Hebrides, underscores the widespread interest and potential impact of such initiatives. The project highlighted the importance of consistent support, digital literacy, and community engagement in driving economic recovery and growth.

Photos from the use case

 

Contact

For further information, please contact the service leads involved in this project, listed below.

Asha Kanhai
Digital Services Project Lead
London Borough of Croydon
Asha.Kanhai@croydon.gov.uk

Pierre Venter
IoT Delivery Manager
Royal Borough of Kingston and London Borough of Sutton
pierre.venter@sutton.gov.uk

Skip to content

Join the LOTI conversation


Sign up for our monthly newsletter to get the latest news and updates