Location Based Marketing - A Good Channel To Try

Location-based marketing (LBM), sometimes referred to as "geotargeting" or "geomarketing", is a marketing strategy that uses a potential customer's geographic location to deliver personalized advertising messages. This approach helps businesses reach the right audience at the right time, potentially increasing engagement and conversion rates.

How does it work?

Various technologies are used in location-based marketing to identify a user's precise location and then give them personalized marketing messages based on that location. Here is an explanation of how it functions:

Location Data Collection: Gathering location data from consumers is a crucial component of location-based marketing. Smartphones and other GPS-enabled gadgets are commonly used to accomplish this. Users' geolocation data is gathered in real-time when they permit an app or service to access their location. As an alternative, a user's IP address can give a general indication of where they are.

Analysis of Location Data: To pinpoint the user's exact location, the collected data is subsequently evaluated. Numerous details about the user's behavior patterns, including frequented destinations, time spent at particular locations, and proximity to particular companies, can be learned from this study.

Marketing Strategy Implementation: Based on the data analysis, organizations can use a variety of marketing methods. For instance, if a user is close to a store, the company may send a message encouraging the user to go in. Users can be targeted with certain adverts that are pertinent to their interests if they frequently patronize a particular kind of restaurant or retailer.

Delivery of Targeted Marketing Messages: Sending the users' customized marketing messages is the last stage. Typically, push alerts, in-app messaging, SMS, or emails are used to accomplish this. These notifications may provide deals, promotions, or details about nearby services or goods.

In order to harness the power of location-based marketing, users usually have to willingly give their consent and allow location access to the apps or services they are utilizing. Safeguarding privacy is of utmost importance, and it is imperative for businesses to comply with both local and international privacy laws when it comes to collecting and handling user location data.

Why should we try LBM?

A business should contemplate utilizing Location-Based Marketing (LBM) for the following reasons:

• LBM enables businesses to target consumers in a specific area, delivering more pertinent messages, promotions, and offers. For instance, a coffee shop may offer a discount to adjacent customers during the morning commute.
• In addition to geographic location, LBM can utilize factors such as time of day and previous purchasing behavior to deliver highly personalized marketing communications.
• Geo-conquesting enables businesses to target potential consumers who are visiting or in the vicinity of a competitor's location.
• Customers are more likely to be engaged with the marketing messages they receive as a result of the increased relevance and personalization.
• All of the aforementioned factors contribute to increased conversion rates, as customers are more likely to make a purchase when they receive a timely, pertinent, and personalized offer.
• Customer Insights: LBM can provide valuable customer behavior insights, such as purchasing patterns and preferences, that can be used to refine future marketing strategies.
• Real-time Marketing: LBM enables businesses to interact with consumers in real-time, thereby enhancing their responsiveness and customer experience.

Despite these benefits, it is essential that businesses use LBM responsibly, respecting customers' privacy and obtaining their consent prior to sending marketing messages. Personalized marketing must be balanced with data privacy concerns in order for LBM to be successful.

Location based marketing vs traditional marketing

Traditional marketing and location-based marketing are two distinct methods for reaching your target audience. Traditional marketing employs offline channels, including television, radio, print, and direct mail, to reach a large audience. Location-based marketing, on the other hand, employs location data to send personalized messages to individuals who are physically close to your business or event.

The following table summarizes the primary distinctions between location-based marketing and conventional marketing:

Advantages of location-based marketing

• Highly personalized: Location-based marketing allows you to deliver messages to people who are already interested in your business or event. This can lead to higher engagement and conversion rates.
• Easy to measure ROI: Location-based marketing campaigns can be easily tracked and measured, so you can see exactly how much ROI you're getting from your investment

Can be more engaging: Location-based marketing can be more engaging than traditional marketing because it's more relevant to people's interests. This can lead to higher click-through rates and conversions.

Advantages of traditional marketing

• Reaches a large audience: Traditional marketing can reach a large audience, which can be advantageous for businesses just starting out or attempting to penetrate a new market.
• Less expensive: Traditional marketing can be less expensive than location-based marketing, especially if you're just starting out.
• More familiar: Traditional marketing channels are more familiar to people, which can make them more likely to pay attention to your messages.

Which is right for you?

The best approach for you will depend on your specific business goals and budget. If you're looking for a highly personalized way to reach your target audience and measure your ROI, then location-based marketing is a good option. However, if you're on a tight budget or need to reach a broad audience, then traditional marketing may be a better choice.

Ultimately, the best way to decide which approach is right for you is to experiment with both and see what works best for your business.

A solution for O2O

Tracking customer behavior is one of the biggest challenges for O2O (online-to-offline) enterprises. It can be challenging to determine when a person who was previously engaged online transitions to offline activities. However, QR codes are a popular and effective remedy to this issue. By incorporating QR codes into their location-based marketing strategies, O2O companies can take their efforts to an entirely new level.

Consider the following scenario: an agency is attempting to reach potential consumers within a certain radius of their store through a hyperlocal targeting campaign. To attract these potential consumers, QR codes are placed on banners and advertisements in the targeted area. When a consumer scans a QR code with a smartphone, they are directed to a particular landing page or offer.

By integrating QR codes into its location-based marketing strategy, the agency can not only track the number of scans, but also obtain valuable customer behavior insights. For instance, if a customer scans the QR code and visits the store, the agency can accurately monitor the number of conversions. This information allows them to evaluate the effectiveness of their campaign and make informed decisions regarding future marketing initiatives.

Moreover, the agency can use the collected information to implement remarketing strategies. The agency is able to construct targeted remarketing campaigns by capturing the mobile advertising IDs (MAIDs) and phone numbers of customers who use the QR code. They can send these customers personalized messaging or offers to encourage them to return to the store or make another purchase.

The combination of location-based marketing and QR codes provides O2O businesses with an effective marketing tool. It enables them to more precisely track customer behavior, evaluate the efficacy of their campaigns, and engage with customers in a more personalized manner. By utilizing QR codes, O2O companies can bridge the divide between their online and offline marketing efforts and reach new heights.

In conclusion

In conclusion, location-based marketing (LBM) is a highly effective marketing strategy that takes advantage of a user's geographic location to deliver personalized advertising messages. By utilizing LBM, businesses are able to reach their target audience at the optimal time, resulting in increased engagement, higher conversion rates, and valuable customer insights. When implementing LBM, it is essential to prioritize user privacy and obtain consent. LBM offers a more personalized approach than traditional marketing, which relies on offline channels to reach a larger audience. Moreover, when combined with QR codes, LBM can enhance online-to-offline (O2O) marketing efforts by bridging the gap between online and offline consumer behavior. With its ability to deliver personalized messages and optimize marketing campaigns, LBM is undeniably a potent instrument that enables businesses to attain their objectives and establish a strong brand presence.