4 Things You Need to Know About Location Based Marketing

Are you a marketer but you’ve just recently given location based marketing a thought and your search history is currently looking something like: ‘what is location based marketing’ and ‘location based marketing examples’?

And after reading the articles featured on the 1st page of Google, you have tried to tell yourself things like:

  • ‘location based marketing is not that useful for my marketing activities at the moment’
  • ‘location based marketing in not that much of a big thing yet, I’ll research it later’
  • ‘location based marketing is based on beacons and I don’t have the budget for it’ or
  • ‘location based marketing works only for retail, and as an online business I shouldn’t care that much’

Does this sound like you? 

Then, you know nothing, John Snow.

marketing john snow

Ok, you do know some things, but you must learn more about location based marketing.

The concept of location based marketing is quite a simple one to grasp. It is all about using mobile marketing strategies/adapting your strategies to mobile, to target mobile users that are in a certain geographic area.

So, even if your business is an online software business, location based marketing can help you with raising local awareness and with recruitment, for example.

We all use location based services to navigate and to find new things around us, that are relevant to our interests, like a new restaurant or a certain type of service.

‘50% of all mobile searches are conducted in hopes of finding local results, and 61% of those searches result in a purchase. (Source)

Some of the objectives of location based marketing are to better inform people about local businesses, better promote discounts, increase customer retention and loyalty.

There are different types of push (push ads to people, based on their location) and pull (pull in people that are in discovery mode) approaches which marketers can use, in order to efficiently reach their local target audience.

Here is why, as a marketer you should care about location based marketing:

1. The Internet of Things

Although many people are going for making all sorts of skeptical faces when it comes to the Internet of Things, I strongly believe that IoT is here and it’s evolving.

Location based marketing will play an even bigger part in marketing in the future, as we increase our number of smart devices and as these smart devices are increasing their number of sensors.

smartphone sensors

image source: corneralliance

2. Mobile driven shopping

Are you shopping and checking for local deals and discounts by using your mobile phone or tablet?

Because I do and I must admit that I get quite ‘tap-happy’ when it comes to (what I consider to be) great deals.

Location based marketing allows you to target people in your area, that are interested in what you are offering.

Does it work?

Well, it works if done right.

I hear so many people complaining about the idea of beacon technology in retail. I would personally not be bothered by a push message with a ‘Free Croissant with Your Coffee’ or  ‘60% Off on Beauty Products with this Coupon’ message when getting near my favorite stores or when looking them up online.

I would probably enter their website or store. And I will probably make a purchase.

In my opinion, beacons are just the beginning of the end of retail as we know it.

But wait, there’s more…

Just developing your mobile app and geo-fencing your business is not enough, if you don’t know your audience and if you don’t give them the content that they are interested in.

Facebook, which is trying to do everything and be good at it at the same time is offering beacon technology, free of charge to businesses who have Facebook Pages for their businesses. Check it out, you will better understand where everything is going.

Oh, and don’t be like these guys:

‘Despite retailers reporting their share of mobile sales almost doubled from 2013 to 2014, one fifth (17%) still have no mobile offering’ (Source)

nope marketer


3. It can help you know your customers and potential customers better.

Personas are so popular nowadays, but a lot of marketers are still not using them (even if they have defined them already). Knowing your audience’s location is not enough, in order to run a successful location-based marketing campaign.

Take a moment to consider if you are offering something useful, rather than just spamming your audience. If it’s not valuable to them, don’t do it just because they are near or they are looking your services up. It will not bring any value or long term benefits to your company.

Try to create an experience for your audience, to offer them personalized content and feel free to create urgency, but in a non-invasive way.

mobile shopping

4. Concerned about privacy much?

Some people feel like location based marketing is invasive. And it can be, if done wrong, or for the wrong purposes.

Location based marketing works if it’s convenient and if people actually get to receive what they are looking for or what they are interested in (don’t forget that people love good deals).

There are so many location based startups nowadays and some companies are already making big bucks off their location based ideas.

If you think about it, location based marketing was always relevant.

There is no doubt that location based marketing strategies are becoming more and more relevant from a business point of view, audience point of view and from Google’s point of view (wink).

 How do you feel about location based marketing?




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