Due to the ever-evolving technology and an endless source of information available online, an increasing number of people are accessing the information they need on the go. As a result, the e-commerce industry is flourishing, as the number of online shoppers keeps growing each coming day, making it challenging for the owners of brick-and-mortar stores to keep up.
However, the time has come when offline retailers can leverage modern technology to provide their customers exactly what they want – when and where they want it. As a result, not only can they meet the needs of their customers while they are on the move, but they can also effectively win back those consumers that they have lost due to the convenience of e-commerce.
Location-based services have made it possible for both online and offline retailers to target specific types of consumers and offer their products or services to them to try and engage them in their brands. However, location-based services are much more than simple GPS technology, as they offer the possibility of connecting with consumers on a more personalized level due to their personal information and interests, helping retailers provide their customers with relevant and valuable information.
Location-based mobile marketing has started to play a very big role in the business strategies of many marketers this year, and its peak is yet to be seen, as it is expected to be widely used in the coming years, especially with the constant increase of mobile use and the importance of mobile marketing.
What Is location-based marketing?
Simply put, a location based marketing strategy rests on using a mobile device’s location provided by GPS technology to pinpoint a targeted consumer’s exact location to provide them with an offer from a nearby business they would be interested in. It allows companies to target customers individually based on the personal information they share when they download mobile apps and their location at a particular moment, enabling marketers to provide the targeted consumers with relevant and personalized offers. So, now you know how does location-based marketing works.
The strategy is not new in the online world. Location-based services have been used for a long time to locate internet users by using their IP addresses to offer them information and advertisements from nearby businesses that they would find relevant. Marketers worldwide have been using this benefit due to search engines tipping off specific users’ locations and enabling them to target those users.
However, with the growth of mobile use and mobile marketing becoming one of the crucial types of marketing nowadays, the strategy has expanded quite a bit, and it has become an essential element of an effective mobile marketing strategy.
What are the benefits of a location-based marketing strategy?
Consumers share their personal information, such as demographics, location, and shopping preferences, with particular brands when they download their mobile apps. They do so because they want to be updated on any new information those brands provide.
The marketing strategy enables you to use this to your advantage and provide your target consumers with personalized offers. For instance, if one of your target consumers who has installed your mobile app visits a mall where your coffee shop is located, you can use your app to send a push notification to that particular consumer’s mobile device and present them with an offer to visit your shop and try your coffee. This type of marketing automatically lures targeted consumers since it offers them something they are actually interested in instead of advertising something they will not find either useful or relevant.
This particular use of GPS technology in mobile marketing is called geo-fencing. It signals your mobile app whenever your consumers are near your store, enabling you to present them with the day’s offer, new discounts, or any other offer you may have.
Apart from geo-fencing, there is geo-targeting and beacon technology. Geo-targeting enables you to send tailored messages to your target customers based on a specific geographic area. For instance, if you own a restaurant in New York City, you can use geo-targeting to send special offers to your target customers located in the city instead of sending them to someone across the globe.
On the other hand, beacon technology targets customers with extreme accuracy and provides them with a very personalized shopping experience. For instance, if your customer is walking through your retail store and stops by the jeans section, your store’s app can use indoor beacons within your store to send a push notification to the customer’s phone and present them with the current discount on the jeans.
As they walk by another micro-location in your store, they will receive another push notification related to a particular product they walked by. This is taking mobile marketing to a whole new level, and more and more business owners are certain to start deploying indoor beacons within their stores, as it will provide them with a powerful tool in their marketing toolbox.
One of the best benefits of the strategy is the possibility to learn more about your customers. It lets you learn more about their preferences and shopping desires, helping you know exactly how to satisfy them. How is that possible? Since location-based technology allows you to locate your customers, you can pinpoint all the places they have been to and, thus, learn about their buying behaviors.
Therefore, not only can you connect with your target customers whenever they cross the virtual perimeter around your store and present them with your offer, but you can also get to know them better and, thus, adjust your marketing strategy to meet their needs and improve your overall business.
This is the main idea behind the strategy, and you should definitely follow it since it will undoubtedly provide you with excellent benefits and help you grow your business. What’s more, you will be able to build trust with your customers and increase customer loyalty since they will be engaged in your brand much more when you provide them with a personalized shopping experience.
After all, it all comes down to your customers, and this marketing strategy is perfect for reaching them on the go and satisfying their needs, thus significantly improving your mobile marketing strategy.
Dos and Don’ts to follow
A location-based marketing mobile strategy cannot bring many positive results if not done correctly. If the location data is not properly used, it can backfire and cause a significant loss of time and money. Therefore, you need to understand precisely how to use the location data you have access to to improve your mobile marketing strategy and, thus, your overall business.
Since privacy is one of the primary concerns of location-based services, you need to know how to approach marketing to protect your business against any potential lawsuits and mitigate the risk of losing your customers.
You need to assure your customers that their personal information will be secure and never misused and practice what you preach. In addition, you must never use the information they provide for purposes unrelated to your business, such as your marketing campaign.
Furthermore, you must never share their personal information with third parties or collect that information without their consent. Therefore, don’t use default options that automatically collect data regarding your customers’ location, personal information, or any other type of information. Instead, provide a clear disclosure about their data collection and don’t collect it without obtaining their consent.
Also, your customers must know what personal information will be collected if they opt in and what information will be shared. For example, if the information about their location is being shared, you must give your customers a periodic reminder. Being straightforward and transparent with them about the data is critical, not only for the success of your marketing campaign but also for building trust with your customers and winning their confidence.
When presenting your customers with these disclosures about using their personal information and location data, you should not use technical jargon but only plain language so that they can clearly understand all of the disclosures.
Which Marketers Are Winning with Location-driven Marketing Tactics?
Facebook, Instagram, Google Places, and Foursquare are examples of brilliantly leveraged location-based services. For example, Facebook enables its users to search nearby locations that their Facebook friends have been to and allows them to check in to any particular location. At the same time, Instagram uses a geo-tagging feature that takes brand experiences to a new level. Foursquare, on the other hand, greatly helps businesses by allowing them to provide discounts and any other offers in exchange for a check-in.
Zomato is another excellent example of how location-driven strategies for marketing can be executed flawlessly. The app works with social media and enables its users to check in to a number of restaurants while also being presented with a number of features, such as leaving reviews and ratings. In addition, it provides the users with a very effective incentive alert strategy that helps improve one’s marketing strategy.
Conclusion
Building apps for location-based services is one of the top mobile development trends dominating the mobile application development sphere.
It’s not only the marketers who are winning with the location-based strategy – the consumers are also enjoying its benefits because of the convenience it provides them with. It is, without a doubt, the most effective way of reaching your customers on the go and engaging them in your brand, so you should not miss out on this excellent business opportunity.
Finoit Technologies is a renowned mobile app development agency providing quality iOS app development services and Android app development services. We have developed over 450 mobile apps and have assisted many solopreneurs in their journey of startups by functioning as a tech partner and rolling out their product ideas.
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