The Importance & Benefits of Location-Based Marketing
A reported 9 in 10 marketers say location-based marketing resulted in higher sales, growth in their customer base (86%) and higher customer engagement (84%) (source).
Location-based marketing is effective for increasing foot traffic immediately, displaying more relevant ads to viable customers, directing customers away from the competition and creating a better experience for your mobile app users.
Increase foot traffic immediately.
Commerce brands can run limited-time promotions, deliver offers that are only available today or in-store, or raise awareness about events or specials to drive immediate foot traffic.
As a customer passes by your store, your mobile app can deliver automated, personalized push notifications or in-app messages to encourage them to walk in your store and redeem your offer.
Location-based marketing can increase store visits and offer redemptions by engaging with customers when they’re physically passing by your store or browsing similar products or services at a competing, nearby store.
Display more relevant ads.
Not only can your marketing team use a customer’s current location (collected from GPS location, geofencing, beaconing or geo-conquesting) to display store-specific ads, but you can also use location data to determine when and where customers are most frequently engaging with your mobile app.
Maybe your customer is most likely to engage with your app during their work lunch break or their bus commute home. Through AI, machine learning, automation and location data, your brand can display relevant ads that align with your customer’s usual interests, during their most receptive moments.
Direct customers away from the competition.
Location-based marketing enables your brand to offer your customers a more competitive special or discount, while they’re visiting your competition. Use geofencing or geotargeting to determine when your customer enters your competition’s store, and deliver personalized offers for the types of products or services that your competition is offering.
If your customer is browsing through your competition’s store, he or she is likely in a buying mentality, toward the point-of-sale stage in their buying journey. By delivering a relevant offer that your competition isn’t offering, you can successfully deter your customer from your competition, and drive them toward your store or drive them to opt-in to your customer base during the most critical moment in their buying journey.
Improve your user experience - over and over again.
Harness the power of data, machine learning, AI and location data to gain genuine insight into your customers’ behaviors, needs and tendencies. Use location data to understand how your customers prefer to engage with you and your competition, where they’re located when they’re most likely to engage with your brand, and where they live to further refine your targeting strategies, content strategies and engagement types.
Using location data to continue personalizing each customer’s mobile app experience can boost their satisfaction and drive more sales as you demonstrate a deep understanding of your customers’ interests and behaviors.