Location-based marketing allows organizations to target consumers at a granular, 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 to a store, events happening in their region, and more.
Location-based marketing has proven effective across customer lifecycles 鈥� from discovery and purchase, to engagement and retention. When used properly, location-based marketing allows marketers to hone in on specific customer segments with targeted offers, while improving customer experience for a population that increasingly values instant gratification. 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.
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鈥檚 location, meaning there is an abundance of location and spatial 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 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.
Localized results for a search conducted in Boston
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.
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.
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.
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.
Geo-conquesting uses location data to divert prospects away from competitor locations. For example, car dealerships might create a boundary around a competitor鈥檚 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.
Location-based marketing can offer a host of benefits to both consumers and marketers.
Marketers can deliver more targeted messaging that grows awareness and nurtures relationships with customers and prospects. The targeted-nature of these ads also often result in less wasted spend. Consumers, growing increasingly particular about which branded messaging they interact with, get personalized offers at convenient times, thus improving their overall experience.
A few of the key reasons marketers are using location-based tactics are:
For successful location-based marketing, it is important that marketers consider their location in addition to the location of their customers. For example, businesses located on a street with minimal foot traffic may not want to invest in location tactics. Similarly, stores that are not on street level, such as in apartment buildings or hotels, should be careful to only target people who are visiting the building to shop. For those not interested in visiting the store, regular alerts may cause annoyance and damage brand reputation.
As with all marketing investments, evaluate your customer base and impactful external factors to understand how these tactics will affect ROI, before committing ad spend.
Marketers have begun to go beyond the common expectations of location-based marketing by harnessing these trends.
Augmented location allows brands to do more with location data than just send notifications. Marketers can create experiences based on where the user is at the moment.
For example, think of Pok茅mon Go. This app tracks a user鈥檚 location, and using the camera function of their mobile device, places a digital creature within the user鈥檚 physical space.
Brands like Yelp are also playing into this trend, allowing users to point their camera at their current surroundings and see listings for nearby restaurants.
Another trend in location-based marketing is its increased use. Retailers across the country are looking to invest in location-based marketing, with nearly saying they would focus budget here in 2019. This said, as marketers adopt location-based tactics they are careful to consider user privacy.
As noted, beacon technology uses Bluetooth to share information with user phones. As beacons become more advanced, marketers are leveraging them in location-based efforts more 鈥� specifically proximity marketing. Proximity marketing uses beacons to deliver highly-targeted messages to users within a very small range.
Prominent developments in beacon technology come from Apple, with the iBeacon, and Google with Eddystone-EID and Project Beacon.
Hyperlocal marketing tactics leverage location data and time-sensitive insights to engage customers. Marketers are able to focus on a smaller number of consumers in a certain town, or even on a certain block. This makes campaigns more personalized and easier to measure. Additionally, with personalization playing such an important role in marketing today, hyperlocal campaigns are easier to customize to niche audiences than large, national campaigns.
Before methods of mass commutations, hyperlocal marketing was a staple. The reach of the internet and television meant that marketers could spread messages further than their immediate proximity. 黑料社入口 teams are reverting back to this strategy, while incorporating new digital advances.
If you鈥檙e worried about user privacy when implementing location-based marketing, you are not alone. Privacy is a big concern for businesses who want to make the best use of location based marketing, with saying that these concerns are preventing them from moving forward with these types of applications.
There is a fine line between using location data to improve customer experience and appearing encroaching to customers. Beyond private information being shared with your organization and employees, customers are also wary of cyberattacks that could make their data available to broader, likely malicious audiences. These attacks harm both customers and businesses, as 64 percent of consumers say they would not shop at a business from which their data had been stolen.
To minimize these concerns, marketers must ensure that users opt into location sharing services when using apps, and have the ability to opt out. Anonymizing data can also help reduce privacy concerns, as information on behavior and preferences are not attached to specific names or email addresses. Finally, organizations must make sure cybersecurity solutions and protocols are put in place to reduce the chances of a successful attack.
Beyond consumer concerns, many regulating bodies have taken notice of personalization tactics through data collection, and have issued rules to ensure companies do not abuse consumer data.
One of the most stringent regulations is , and is applicable to all organizations that do business with residents of the European Union. GDPR does not let companies target users without explicit opt-in, and has strict guidelines regarding the use and storage of EU citizen data. Consult with your legal team to get a better understanding what can be pursued via your company鈥檚 marketing efforts
Organizations must be compliant with local privacy laws before rolling out a location-based marketing program.
When privacy and data collection / protection are handled in an appropriate, secure way, many consumers are willing to share information for a better customer experience. Consider these stats:
If your company is able to provide a better experience to users, this can be a great tactic to strengthen relationships with customers and prospects by providing more relevant information and rewarding loyal customers.
To ensure your location-based efforts are successful and do not negatively impact your marketing ROI, consider the following before getting started:
Location data is valuable to better understand customer behavior and issue more personalized offerings at the right time. However, it is still only one data point. To create the best customer experiences, marketing teams must combine location data with additional insights for a complete picture of needs and preferences.
Location data should be compared with attribution models such as unified marketing measurement (UMM) to get a better understanding of the customer. Centralizing data in this way will not only illuminate marketing tactics based on real-time location, but creative preferences, the type of device the consumer users, when they shop, and historical date on what they have purchased.
Be sure that location efforts are not siloed from the rest of your marketing strategy, but rather are used to inform broader strategies to create a more cohesive view of your customers.