Consumers are turning to their mobile devices more and more to search for their favourite restaurant, local pub or shopping centre. With smartphone usage and technology having grown increasingly more sophisticated, location-based marketing is all the hype at the moment. The question is, what exactly is location-based marketing and how can companies benefit from it?
According to chron.com Location-Based Marketing can be defined as “a marketing method that changes depending on where potential clients are located. Instead of treating customers as a monolithic entity, location-based marketing adapts to the particular social, cultural and personal traits of customers by making assumptions about their habits and preferences based on their location at a particular moment.”
Marketers are now able to engage and connect with customers in a way that is relevant and meaningful to them. How do they do this? Very easily. When a potential consumer downloads a mobile app, the consumer is asked whether or not they are happy for the app to use the device’s current location. If the consumer ‘opts-in’ for this service, marketers are then able to send alerts to consumers when their device is in a specific geographical area.
So how can businesses take advantage of this technology and engage with consumers on a different level? We investigate by taking a look at some of the benefits of location-based marketing below:
Get to know your current customers
Location-based services allow you to find out more about your existing customers. When sending communication about a particular offer or special, marketers can track the resultant take-up rates. This not only provides consumer insights, but also valuable information about their buying behaviour. For example, if you have a buy 1 get 1 free special through your app, you can track how many consumers took you up on that offer and how soon after it was communicated. That way, when you have another special on offer, you will already have a good idea regarding which customers will be interested and which will not.
Once you’ve identified which consumers are interested in your product, you can then send them instant messages alerting them to real-time offers or specials. The geolocation tagging also allows marketers to identify when consumers are headed to their store, as well as when they are in the area, making marketing messages more relevant and inviting.
Drive foot traffic to your store
Location-based marketing is particularly beneficial for retailers as it not only drives foot-traffic to their stores, but also creates an awareness among potential consumers. Apps allow consumers to use the GPS function on their phones to search for nearby businesses, as well as their detailed information such as the company’s website, directions to stores, or discount coupons.
To sum it up, when using traditional media, marketers have to hope and pray that consumers remember their brand. However, with Location-Based Marketing, your message is delivered directly into the hands of a specific demographic (male, female, age group, etc) – and at the exact time at which they are looking for it.