Location-Based Marketing: Everything You Need To Know

Are you someone who is looking for effective marketing solutions to reach your right customer, at the right place and right time? Here is the solution with tremendous benefits, Location-based Marketing.

Location Based MarketingWhat if you know where your potential customers are or when your potential customers are nearby your location?

Don’t you think that a single personalized SMS or push notification with an attractive offer at that point of time can bring the customer to you?

And most possibly, it may result in conversion too.

It is what the concept of Location-based marketing about.

It is a well-known fact that today, we cannot imagine our lifestyle without mobile phones.

Smart mobiles have an immense impact on our day to day activities.

And also they play a critical role in persuading the decisions when we look into customer’s journey.

Thus, mobile marketing has become a mandatory strategy for any business today.

Location-based marketing or location-based advertising is using mobile marketing to the targeted customers within the specific geographical boundary.

In Location-based marketing, the longitude and latitude points of your customers’ mobile device are tracked.

For this, GPS or cell tower triangulation is used.

In general, Location-based marketing also relies on Wi-Fi, Bluetooth-Beacon, and RFID technologies to acquire location data of your customers.

Also, location-tracking abilities are built into smart mobile devices.

So, you can also capture location data of users from photos shared by them, their online transactions, the GPS enabled apps, etc.

According to Econtentmag.com, 94% of millennials are using location-based services, defined as apps that can identify where individuals are geographical via their smartphone.

Thus, with the obtained location data of your customers, you can create real-time campaigns.

And your campaigns revolve around where your customers are and what they might be doing.

Hence, you can reach out to only those customers who are actually in the right context to consider.

The location data not only tells you about the geographical location where your consumer is present at a particular time.

But, from their location history, you can know which areas they frequently visit and what are their daily habits.

And helps you to analyze your customer’s intent more deeply.

Thus, Location-based advertising enables you to increase your customer engagement by offering more personalized experiences.

It will, in turn, builds loyalty with users and boost your ROI.

Also, customers are more willing than ever to share their data with brands in expectancy of more personalized content and tailored promotions.

This opportunity to engage your potential customers at such a critical time is what makes Location-based marketing so exciting.

Location-based mobile marketing can be implemented in multiple ways depending on your strategy and your customers’ location.

Let us explore the landscape of Location-based advertising to understand it profoundly.

The landscape of Location-based marketing.

Here are the five different Location-based marketing models which you can implement according to the need of your marketing strategy.

1#Location-based advertising using Geo-aware ads

You can use geo-aware ads by tracking the real-time location of mobile users.

For Location-based mobile marketing through Geo-aware ads, you need to have your customer’s mobile data like a phone number or device number in prior, which you need to track when they enter a particular area.

As soon as your targeted customers enter at specific points which are near to your location, you can send them your mobile ads.

You can also send the ad much before when you know that your customer is traveling towards your location.

It not only creates a quick brand recall but persuades your customers to enter your store as soon as they come across it.

For example, when a customer passes by a coffee shop, you send the message of your latest coffee offers.

It, in turn, increases the chance of the customer entering your cafe.

Google has been offering Geo-aware ads for quite some time now.

And Facebook and Twitter also allow advertisers to target audience based on their location.

2#Geo-Fencing location-based marketing

It is defined as the practice of using global positioning (GPS) or Radio Frequency Identification (RFID) to define a parameter around a specific geographic point, for example near your store, venue or service.  

Once this virtual barrier has been established, you would be able to set up triggers that send a text message, email alert, or app notification to a consumer’s mobile device when they enter the fenced area.

Your virtual geographical boundary, which is termed as geo-fence, could have the maximum radius of 50,000 meters.

However, as a basic rule, to leverage location-based marketing, you need to interact with your customers within a distance of 50 meters.

Geo-fencing helps you in the better segmentation of your target customers.

Thus, your promotional message reaches to the people only who are in your geo-fence.

There are so many messages out there that the customer may miss out to check when he actually needs.

If you send the same message when your consumer enters your geofence, it may help him to find what he needs in the right moment.

For example, consider a situation where a restaurant uses geofencing to trigger SMS with special offers at lunchtime to the customers, who are nearby the store, within the geofence.

You can see that the SMS is sent to only that segment of customers, who are nearby the restaurant at the right time.

Thus, location-based marketing by geo-fencing can increase the probability of restaurant to pull significant traffic than usual SMS marketing campaigns.

Statistic about geo fencing in location based marketing

3#Geo-Targeting location-based marketing

You can use Geo-targeting for advertising your content to consumers based on their geographical location.

You can implement Geo-targeting in a specific location via device ID, or on a more granular level via GPS signals, geo-fencing, etc.

In other words, by using geo-location targeting, you can determine the location of your website visitor or app user.

And thus, you can deliver tailored or localized content based on their location, country, region, etc.

Based on their geographical area of residence, users have different interests and needs. With geo-targeting, you can reach your most targeted customer and with much more personalized content.

For example, you have tracked that your food website got excellent user engagement from China.

You can leverage geo-targeting by sending promotional ads on Chinese food in the Chinese language for the targeted customers in that geo-location.

In this way, by using Geo-location targeting, you can ensure that the user is presented with content in their local dialect.

Also, you can see companies such as Samsung, which use geo-location targeting to ensure the presentation of the correct web page to visitors, accessing their site from all over the globe.

By using geo-location technology, you can also test different design elements which may depend on their culture and sensibilities, based on the user’s location.

As an example, while you are launching your app, based on user’s geolocation, you can test samples of app content like description, icon color, etc., using geo-targeting technology.

Localization is one of the critical factors for app store optimization.

And by using Geo-targeting location-based marketing, you can make sure that the localized app is promoted in the right location, to the right users.

4#Geo-conquesting location-based marketing

You can use Geo-conquesting to draw customers away from competitors.

It involves Geo-fencing, but instead of defining it around your store, you need to set it around your competitor’s store.

Here, you need to design your location-based marketing strategy which creates a comparison between your competitor’s and your service.

This indeed should persuade your potential customers to get an impression that you are a much better choice to opt.

As a result, it drags the potential customers in your competitor’s geo-fence to your business.

For example, a local coffee shop can implement geo-conquesting location-based advertising by defining geo-fence at big coffee chains like Starbucks.

Then, target the customers with timely messages emphasizing local deals, short lines or unique menu items.

It indeed diverts the customer’s attention on shortcomings of the competitor’s service.

And it results in audience shifting from your competitors’ service towards you.

You can utilize these four location-based marketing models when you want to promote your product or service within a larger area.

But, these models are not precise enough to use in indoors, such as to add an in-store customer experience to increase in-store sales.

Here is where you need to choose the fifth location-based marketing model, Proximity marketing or Hypertext contextual marketing.

5#Proximity marketing or Hypertext contextual marketing.

Proximity-based advertising is a more granular form of location-based advertising.

Proximity marketing helps to deliver more contextual communications as timely, relevant and personal as possible.

Mobile Proximity marketing makes it possible for you to track a consumer’s mobile device within a building.

It can even be next to specific shelves in shops, where geo-targeting and geo-fencing are not viable.

In other words, you can leverage the accurate location of a consumer within the range of 50m to engage them with contextually relevant notifications.

The most common technologies used in mobile proximity marketing are Wi-Fi, Bluetooth Low Energy beacons and Near Field Communication.

Technologies like Beacons help you target customers based on the department they have spent most time in-store.

And it helps you to analyze how long they have been looking at a particular product or brand on a shelf.

In most of the cases, it is the best way for you to utilize the combination of basic location-based marketing and proximity location-based marketing.

You can use basic location-based marketing models like geo-fence to drive the customers to your store.

And then, implement Proximity marketing using technology like Wi-Fi to engage your consumer within the store.

Benefits of Location-based marketing

Location-based marketing is a mobile marketing technique which has tremendous benefits if implemented correctly with appropriate technology.

Here are five benefits of Location-based marketing, which you need to know to understand its potentiality.

Precise marketing.

You can see that Location-based marketing is an accurate form of marketing as compared to other methods.

As mentioned before, with location-based mobile advertising, you can engage with people when they need your product or service.

Thus, you can save your advertising cost by reaching out to only those audience, for whom your advertisement seems relevant.

Also, you can obtain brand recall from your customers at the very right time and the right place.

Boost your conversions.

Location-based marketing does not have barriers to sales.

You have a much better chance to influence your customers when they are physically close to your store.

It is the point when you can directly pitch your sales, without any hesitation and obtain the conversions instantly.

Deepens your Connection with your customers

Location-based marketing helps you to target people in a specific location, where you can cater your content to characteristics of people live in that area.

People resonate with catered or localized content, and it builds a deeper connection with your brand.

Because localized content that is specific to their choices will show that you understand your customers very well and care for their interests.

It indeed builds enormous trust.

Boost Engagement and Response Rates

You can boost engagement and response rates tremendously using location-based marketing.

People appreciate the personalized content and are more likely to engage with it.

Whether it’s downloading a piece of content relevant to their area, calling a number in an SMS, or engaging with your social media posts, location-based marketing can encourage more activity among your target audience.

More engagement with your business can also mean more sales.

Better Return on Investment

Sometimes, it’s not about doing more of particular marketing activity; it’s about doing the same amount of that marketing activity but getting more out of it.

Whether it’s more leads, engagement, customers, etc., location-based marketing can maximize your marketing activities.

As a result, you can see a significant return on the investment of your time, effort, money, or other resources when you compare to other mobile marketing techniques.

On a final note

Marketing to the mobile generation requires creativity.

And location-based marketing is all about combining that creativity with technology to provide personalized, real-time experiences using location data.

Although mobile marketing has become a compulsion today to stand in the competition, it has been associated with many mobile marketing challenges.

location-based mobile advertising is a remarkable solution to such mobile marketing challenges like converting web leads, frequency, etc.

It is evident that Location-based mobile marketing has an enormous role by enabling you to personalize your ad campaigns remarkably.

According to LBMA, in a survey of 500 marketing decision makers, 25% of marketing budgets are spent on location-based marketing and over 50% of brands are using location data to target customers.

Relying on demographics or sales data alone gives you a two-dimensional picture of your customers’ intentions.

But, what if you combine these sources with location data?

In fact, you can obtain a three-dimensional overview that can help you identify critical points in the customer journey.

And as said before, you can reach out to customers when their need is at the most.

Credits – Contributed by Elizbeth MASON

Also, read about 7 Damaging Mobile Marketing Myths You Need To Discard Immediately

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Kalyani Hari

Kalyani is a former software employee, who chose to find her career in writing. Growing up as a vivid reader, she has nurtured her perceptions with objectivism. Her interest lies in human psychology and business topics. She likes to observe evolutionary patterns of thought processes. Currently, she is researching on emotions in digital communications. She loves to travel, explore and evolve.

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