In today's digital era, location-based marketing has exploded in popularity. By 2025, this subset of the advertising business could bring in $24 billion annually, according to estimates. Businesses can reach and interact with their consumers in highly relevant and customized ways by using the immense influence of location data. Hyper-localized content can help companies attract customers, provide them with a better experience, and gain an edge over rivals.
However, what exactly is location-based marketing? In this article, we'll investigate this cutting-edge tactic to discover what it is, how it works, and why it's the future of customer experience.
What is Location-Based Marketing
Location-based marketing uses information about where a customer is from their phone to send them messages about a business nearby. If a customer is near your retail establishment, you can notify them about specials and other incentives to come in.
Defining Location-Based Marketing
"Location-based marketing" describes sending promotional materials to customers depending on their location. It uses the receiver's current position, as determined by GPS, Wi-Fi, IP address, or beacon technologies. Businesses may target their advertising more effectively when they know where their clients live. With pinpoint accuracy, businesses can run targeted ads, make specific suggestions, and provide exceptionally pertinent deals.
Techniques and Strategies
Customers' locations are crucial in customizing marketing techniques in this kind of marketing. It works best when you choose areas many consumers access to increase their likelihood of connecting with you after getting the messages. The following are some instances of location-based marketing strategies:
- Geotargeting
This application utilizes the IP addresses of users' mobile devices to detect their position and deliver messages depending on their proximity to a business, rivals, and other factors.
- Geofencing
With Geofencing, you may use GPS to create a virtual fence. When consumers enter or depart the perimeter, they will get marketing messages.
- Beaconing
With Beaconing, devices employ WIFI or Bluetooth to reach clients within a short region. When a client comes within range, the beacon will transmit a signal to the client's mobile device. Then, the consumer gets the information on their mobile device.
- Geo-Conquesting
Geo-Conquesting puts a perimeter around competitors' sites and utilizes GPS technology to monitor when consumers cross the zone. Customers who approach the vicinity of rivals receive messaging discouraging them from purchasing at those businesses.
Brands may deliver location-based marketing campaigns using in-app communications, smartphone push alerts, and SMS. When users permit your app to monitor their location, you may send them personalized messages pushing them to visit the business, take action, or purchase.
Benefits of Location-Based Marketing
The ability to target clients with location-specific, personalized information is an enormous boost to any business's bottom line. Location-based marketing is a powerful tool since most individuals nowadays carry mobile devices wherever they go. Among the many advantages of location-based advertising are:
Enhanced Customer Engagement
The main purpose of marketing is to pull in existing and future customers. Increasing engagement for your company is the ultimate activity you want to take. Location marketing leverages your smartphone data to help you get immediate personalized offers, which is one of its greatest benefits.
Personalization and Relevance
Advertisers may improve the quality and effectiveness of their targeted messages by using real-time location data. You don't need to limit this to a certain location. Location may be a powerful tool when combined with time and message data. Marketers may benefit from this data by knowing consumers are more receptive to ads during their commute. Geographic information may also influence copy and creativity. Advertising teams, for example, may opt to utilize photos of the city where the target customer resides instead of generic imagery. The importance of context and relevance in creating messages that are read and acted upon has grown substantially in recent years. You can meet these requirements with the help of these real-time insights.
Implementing Location-Based Marketing
Various forms of location-based marketing are suitable for use by any retail establishment. Whether you're a national chain store with a sophisticated mobile app or a mom-and-pop shop focusing on a specific neighborhood, it holds. Here are some real-world illustrations to think about.
Tools and Technologies
Here are some tools and technologies to consider:
Smart Digital Signage
Assume a retail apparel firm has built a flagship store in a busy shopping area and wants to attract consumers. To do this, they use public ads and location-based marketing strategies. Digital billboards and other smart digital signage are carefully placed by the shop in highly visible locations. These advertising screens include location-aware features that may identify adjacent mobile devices.
You can track people with these digital screens, triggering real-time, targeted advertising. Let's say, as an example, the system picks up on a group of young people strolling past. The digital signage ad would be a colorful presentation of the label's newest on-trend offerings. The message may read, "Visit our flagship store today to see all the latest trends in fashion." Of course, visuals like photos or movies will complement this message.
Mobile application
Using a customer's proximity to a business to send them a push notification is a typical instance of location-based marketing used in the real world. Let's imagine the following. Suppose you are near a shopping center and download a store's app on your smartphone. The store's app will recognize your position as you approach the shopping center using GPS or a nearby beacon. After that, you'll get a push message from the app with a special, tailored deal to encourage you to stop by the shop.
Best Practices
Here are some ways a company might take advantage of location-based marketing while avoiding the pitfalls that often accompany it.
- Make good use of geotechnology
Today, businesses may use many technology tools to enhance their consumers' location-based interactions with their brands. In-store Wi-Fi, geo-fencing, and cross-channel attribution are excellent consumer engagement strategies. Businesses like restaurants and shopping centers may utilize location data to notify consumers of deals and events like celebrity sightings or special meal discounts.
- Make it convenient
Places like cafés and restaurants may utilize customers' location information to take orders ahead of time. Customers may also arrange for online orders to be ready for in-store pickup. You can make a delivery directly to the customer's automobile or other mode of transportation using a customer's location. It is undeniably a winning strategy for retaining customers.
- Respect for privacy
Customers worry about their privacy being invaded by location-based marketing. Most people are averse to providing their personal information. Offering the consumer with options is the best approach. Customers should have the option to get GPS-enabled content. Marketers may also alleviate consumers' concerns by outlining how they intend to use customers' location data to improve their overall experience. When consumers provide personal information, marketers must use caution to avoid selling or otherwise misusing that information.
Improving customer experience with location-based marketing
Numerous individuals nowadays own cell phones and take them wherever they go. As a result, there are several openings to gather and analyze client locations and provide location-based marketing. Place-based advertising is undoubtedly an efficient way to spread the word about your company and generate new customers. If executed properly, it's a successful marketing tactic that doesn't break the bank.
