Location based marketing services and it’s benefits.

Location-based marketing refers to online and offline tactics used to target consumers in segmented geographic areas. The growth of mobile integration, data management and consumers trusting technology more have all contributed to the increased effectiveness of location-based services.

What are it’s benefits?

Location – based marketing helps you market your product to consumers when they are most interested in learning about it and purchasing it, which is the goal of any marketing campaign. Businesses are able to target consumers in specific areas with tailored campaigns or coupons/discounts to improve customer loyalty, improve the customer experience and generate a ‘buzz’ for the business. Thus, it is very useful to a businesses segmentation strategy.

Ways to use this marketing tool:

The popular sandwich chain ‘Subway’ in the UK began a location-based marketing campaign. It involved sending SMS messages to consumers, who had previously opted in to the service, alerting them of special discounts when they were in close proximity to a Subway location. This is a smart way of utilising the service to increase brand loyalty as consumers will feel valued and as though the brand takes notice of their loyalty, and subsequently offer discounts to increase the likelihood of them visiting the Subway chain. This marketing campaign was based on geo-fencing, which allows businesses to send consumers push notifications, SMS messages or see location-based content when they are in a certain location.

Location tags are vital in social media sense for the marketing of your business. Tagging posts with a geo-tag on platforms such as Facebook, Instagram of Twitter alerts consumers where posts occurred, which can increase the visibility of your posts. Consumers searching for content based on location may come across your brand and further explore it, increasing brand awareness. Location tags can also be used in a customer perspective, in which customers tag the location of the business known as a ‘check-in’. This advertises the businesses location to other consumers in a similar market, acting as a ‘recommendation’. This will further persuade new customers to try your business.

Location services can also be used for online reviews. When consumers research local business on online platforms such as Google+ Local and Yelp, they can find reviews and information on the business. After visiting a business location or searching the business on these platforms, consumers may receive alerts from Google+ asking them to review the business. This can help businesses generate a positive view of their business and further increase brand awareness.

Geo-targeting can be used to target consumers that have visited a specific location in the past. This involves using historical data to assist businesses in developing marketing campaigns that are much more relevant to its audiences as the location data acts as an indicator of a consumers real-world preferences.


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annabellesleeman

Hey! I'm a 3rd year Business student at Monash University. This blog is part of my assessment for MKF3881 where I will be sharing my views and findings about digital marketing. Enjoy !!

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