Location-based marketing
Location-based marketing allows organizations to target consumers at a granular,(refers to highly specific and accurate targeting) person level with online or offline messaging based on their physical location. Using location data, marketing teams are able to reach consumers based on qualifiers like proximity (close together) to a store, events happening in their region, and more.
Location-based marketing has proven
effective across customer lifecycles – from discovery and purchase, to
engagement and retention. (keeping in control) When used properly, location-based marketing allows
marketers to hone (perfect)in on specific customer segments with targeted offers, while
improving customer experience for a population that increasingly values instant
gratification.(pleasure) For example, location-based
marketing may alert a prospect that a product they have been considering is
stocked in a nearby store, allowing them to pick it up right away.
Types of Location-Based Marketing
Location-based marketing has largely
been enabled over the past several years by the growth of connected devices.
Today it seems that everything is connected to the internet - phones, cars,
watches, and more. These devices are often tracking their owner’s location,
meaning there is an abundance (large quantity)of location and spatial (area)data available. Insights
derived from this data provide marketing teams with greater context into how to
reach customers and improve their overall experience.
There are several different ways
marketers can channel this location data into their marketing
efforts:
Geotargeting
Geotargeting is used to determine the
location of a user, to then serve them personalized messaging based on their location.
If a consumer has opted in to let an app access their location, they may get
messages in the app or push notifications based on region or proximity to a
store.
How it works
Geotargeting is based off IP
addresses. Every connected device has a unique IP address making them
identifiable. From there, device IP addresses can be matched to country, zip
code, etc. to determine where users are located.
Benefits
The key benefit of geotargeting is to
increase customer experience through personalization. For example, marketers
can target users based on needs specific to their location, such as weather or
local news and events.
Examples
A popular example of geotargeting is
Google search results. If a user searches “coffee shops,” Google will use
location data based on the IP address of the device the search is conducted
from to return information on coffee shops in the area.
Localized results for a search conducted in Boston
Another common example of geotargeting is done by Uber. When a user is traveling and
touches down in a new city, upon opening the app they will get a notification
about available cars in that city.
Geofencing
Geofencing is the creation of a
boundary within a specific region. When target audiences enter that
boundary, they will become an active target of the marketing strategy. This
might mean they receive content, offers, or some other form of messaging from
the brand. An example of a boundary is an area that encompasses a popular
shopping center at which the company has a store.
How it works
Geofencing utilizes GPS technology to
create a border. Whenever a target user crosses this border, they receive a
notification or piece of messaging.
Benefits
Geofencing allows marketers to cover
large areas, such as malls or event spaces. With this method, marketers can
target all users that are within a certain perimeter. While less granular than
other tactics, geofencing can be a great tool if you have a large convention or
if you want to capture traffic right in front of your store.
Geofencing is based on real-time
location data, which allows marketers to encourage users to engage with their
products, or divert consumers from engaging with competitors.
Examples
Retailers can use geofencing to
target users near their stores to encourage them to stop into a shop. For
example, if a customer has been reviewing a product online, they may get a
notification that the product is in stock at a nearby store.
Beaconing
Beacons are connected devices that
use Bluetooth or WIFI to connect with predetermined applications that are
operating within range of the beacon. Beacons work well to target existing
customers within a small geographic area.
How it works
Beacons send a signal to your device
that prompt a server to send content to your device. This could be a push
notification, email, etc. For example, say a sports stadium encourages
attendees to download their app for ticketing, concessions, etc. The venue
would set up beacons to recognize when a device with that application installed
is in range.
Benefits
Users have to be opted-in and have
Bluetooth on in order for you to take advantage of this. However, this medium
of location-based targeting does give you a more direct communication
channel with customers.
Organizations can track users
indoors in a more precise manner. This not only allows for more specific
targeting, but helps marketers get a more complete understanding of customer
behavior.
Users don’t need to be online in
order to receive these notifications.
Examples
Stores can place beacons aisle(passage) around the store to send offers as consumers browse. For example, a grocery store may use beacons to see when a consumer is in the ice cream aisle, and then send them a deal on ice cream cones.
Mobile Targeting
Mobile targeting occurs when
marketers target consumers with ads on their mobile devices. Because consumers
typically want to avoid advertising, marketers aim to make their ads context
specific, which can be based on time, device, or location.
How it works
Create segments in your mobile ad
platform that define who you want to target and what qualifications to target
them by (when they enter a certain area, or are in proximity of your
store).
Benefits
This allows marketers to target users
directly on their devices for a more personalized connection.
Marketers often see greater returns
on ad spend using a more targeted approach.
Examples
Social media ads that target based on
location data can help encourage visits to a store, restaurant, or event
nearby.
Geo-Conquesting
Geo-conquesting uses location data to
divert prospects away from competitor locations. For example, car dealerships
might create a boundary around a competitor’s lot. When a target consumer comes
within that boundary, they will be sent an offer to users that encourages them
to visit the other dealer.
How it works
Geo-conquesting uses GPS technology
to target users in the proximity(close) of your competition.
Benefits
Organizations can win market share
and new customers by encouraging users they know are already shopping for a
product in the space to purchase from them over a competitor.
Examples
Burger King used geo-conquesting to
great effect, diverting would-be McDonalds customers back to their own
restaurants. Consumers were encouraged to download the Burger King app. When
they came within 600 feet of McDonalds, the Burger King app sent a promotion
for a 1 cent whopper, and navigated customers to the nearest
location.
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