Location based marketing: what’s this?
Location based marketing is a new notion in trading that helps companies to focus on consumers at an individual level – by means of online notifications according to the person’s location. Using contactless marketing, sellers can address customers based on such criteria as proximity to the shop, events, taking place in some city or region, and so on. At a thoughtful approach to the advertising strategy, one can create targeted offers for the definite segment of clients, which will improve the quality of customer service and ensure more comprehensive business development.
Types of location based technologies
The possibility of applying location based services marketing has appeared due to a rapid increase in the number of connected devices. Nowadays practically everybody uses gadgets connected to the Internet – smartphones, watches, vehicles, etc. Many of them track the location of users, which let marketers analyze data and have better understanding of consumers’ needs and likes.
The knowledge about user’s location can be employed in marketing campaigns in several ways – by means of geotargeting, geofencing, geo conquesting and contactless marketing based on Bluetooth proximity marketing beacons.
Geotargeting is used for sending personalized notifications to users. If a person allows his mobile application to get access to his location, he can receive messages or push-notification depending on the proximity to the store. The technology operates on unique IP-addresses attributed to any Internet-based device. The main advantage of targeting is improving the quality of customer service thanks to personalization. For instance, companies can provide users with the information related to their location (local news, currency rates, weather or events).
Geofencing means establishing a zone within the definite territory. As soon as a potential client enters this zone, he turns into an active target of the advertising campaign, i.e. starts getting content, proposals or other types of notifications from different companies. The example of such border is the area covering a shopping center, the place near the restaurant or the cinema, etc. Although geofencing technology is a less accurate technology than others, it can become a perfect tool for conducting advertising campaigns in your business.
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Geolocation iBeacon-based contactless marketing makes use of special beacons that detect Bluetooth signals from users’ smartphones. The gadgets send signals that make the server deliver the required content to the customers’ phones. The technology provides companies with the direct channel of communication with clients. Marketing specialists can monitor people inside buildings – it ensures better adjustment of targeting and gives comprehensive insight into clients’ behavior.
The technology of geo conquesting uses the data on users’ location by GPS to distract potential clients from competitors’ locations. Thus, car showrooms can create borders around the competitor’s store. As soon as a target user gets inside this border, he is sent an offer stimulating him to visit another dealer. Thanks to geo conquesting, companies can get a wider market share and attract new clients. Using geo based marketing, they can faster and easier encourage users to cancel purchasing from their competitors and move to them.
Advantages of geo based marketing for companies
Location based marketing can be beneficial both for marketers and customers. The key pluses of the technology are:
- possibility to stimulate attendance of various organizations by letting users know their nearest location and promo events;
- displaying more relevant advertisements that are not limited to the user’s physical location;
- possibility to send push-notifications with information or coupons;
- increasing clients’ loyalty by providing them with route maps around buildings;
- improving user’s experience;
- possibility to gather analytics for optimizing business spaces.
Our company’s cases
One of the examples of using contactless marketing is the Finnish retailer Kesko that applied the technology of contactless marketing based on beacons from iBeacon. Shopping carts were equipped with the navigation module from Navigine which allows building convenient routes to the stalls with the necessary products.
Navigine is specialized in implementing geolocation-based marketing solutions and offers geofencing software for companies. Using Real Time Location based advertising tools opens wide perspectives for developing business and ensuring personal approach to every customer.