The Hidden Agenda of Location-based Marketing

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The magic of location-based services

 It’s not uncommon today for your smartphone to beep with a notification, which is nothing but an appealing offer from a nearby store, restaurant or shopping center. Ever wondered how it happens? How on earth does your smartphone know that you are close to it? Well, it’s the magic of location-based services, which have become an intrinsic part of brand marketing strategies these days.

Ever since mobile devices with geo-location features entered the marketing world, marketers found a new way of targeting consumers and providing them with an offer. They are now able to leverage location-based services to provides advertisements to consumers based on their geographic location. But what is it that marketers actually want to achieve through this form of advertising? Let’s try to understand this here:

Drive foot traffic in brick-and-mortar stores

This is perhaps the first objectives behind location-based advertising campaigns. Since the ad is targeted to people within a geographical distance, the store is likely to get more footfalls. It won’t be wrong to say that location-based marketing creates a “pull” for consumers and brings them to the store. A hungry consumer would love to visit a nearby restaurant if he or she is provided with an alluring offer from it. So, the objective here is to make an offer to people located within the proximity of the restaurant and drive them to drop by for a meal.

Acquiring relevant prospects

Location-based marketing allows marketers to combine location data and other consumer data such as preference information and demography. This helps them to reach the right prospects and convert them to actual customers. It touches particular pain points of consumers and lures them with a relevant solution. For a cosmetic store, for example, it would be beneficial if it leverages data about styling preferences of women and their location data together while delivering ads. This would help them attract women in that locality who would actually find the offer relevant.

Providing personalized experiences

 The best part of location-based marketing is that it allows brands to create personalized services. The use of beacon technology in malls is one good way of providing personalized location-based advertisements to shoppers. For example, if a shopper walks through the formal section of a clothing shop, the beacon technology will deliver a push notification to the consumer, presenting the latest offers on formal clothing. Location-based marketing, thus, seeks to take personalization a step higher.

Increasing consumer loyalty

A brand that continues to solve consumers’ problems is likely to enjoy their loyalty. For example, if a restaurant continues to use consumers’ location data and provide amazing discounts and offers on meals at relevant times of the day, its likely to create a memorable impression on its consumers’ mind. Consumers would love to remain loyal to such a brand that knows them so well and provides exactly what they need. Thus, increasing consumer loyalty is one important objective that marketers seek to achieve through location-based marketing.

 

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