We’re moving at a phenomenal rate when it comes to Location Based Marketing (LBM) a method of marketing which works on a personal level and can create a strong call to action when you’re within the vicinity of the promoting business.
Location Based Marketing are alerts which are sent to mobile devices through text messages or SMS, which can have a promotional call to action or includes information on specific promotions like “Bargain of the day” or whereby you could be redirected to download coupons from the retailer’s website. These promotions will be associated with local businesses and retailers within the area.
The way LBM works is that the end user needs to “opt in” this is usually at the point where the end user downloads an app and excepts the terms and conditions for the app to use the mobile or smart device’s current location. Location marketing services like this would use geofencing technology software which uses triggers, so when you go over this invisible geographic boundary you will activate this trigger and a message will be sent to your device.
As with any mobile marketing initiative or campaign, the main objective is how we can turn the end user into a potential customer by sending them special offers, discount codes, coupons, or simply a redirection URL sending you to their website.
What are the benefits of LBM?
Cost effective – this method of marketing is more cost effective than other methods of marketing, such as Direct Mail which would incur printing and delivery costs and most importantly with mobile you can gain valuable data immediately.
Geo Targeting – you target the people who are within the local geographic boundaries of the company which is promoting specific products and services.
Customer Insights – you can gain great customer insights from this method allowing you to analyse the data and gain learnings on how you can improve future campaigns.
Customer Loyalty – you will be able to identify loyal customers via this method which then allows you to market to them using rewards and incentives.
New Customers – Offer great deals and incentives to potential customers who are close by, with this, you will build brand awareness and increase footfall.
Putting mobile based marketing into practice
One of the main advantages of LBM is that when you activate a trigger for a specific company within your area, it could say… “we’re only 50 meters away, here is a voucher to get 20% off in-store today” creating a strong call to action and sense of urgency to get you in-store.
As you can see LBM has many benefits and can help generate footfall and revenue into a business.
So, is Location Based Marketing the right method for you and your business?