It used to be that if you wanted to drive people in the immediate vicinity to step inside your store, you’d use a glaring neon sign or a giant billboard. You might also have someone put on a silly costume and wave at people, spin a sign around, or hand out fliers.
Your store might still have a neon sign, a billboard, and a person in a costume, but they’re much more difficult to notice now because people are too absorbed with their smartphones and mobile devices. In fact, 83 percent of American adults ages 18 -29 have a smartphone, as do 74 percent of American adults age 30 – 49.
This creates the opportunity for mobile marketers to take advantage of location marketing technology to drive traffic, increase revenues, and enrich the customer experience. Rather than old-school signage and inefficient marketing gimmicks, you can reach people in specific locations with customized in-app marketing communications.
Their app usage can also give you some insight into their buying behaviors. This way, you can segment them according to who they are as well as what products and services they buy in addition to where, when, why, and how they buy them.
Then, rather than blasting out a message to many people that will only be relevant to a few, you can actually create one-to-one interactions with your customers based on where they are and what you know about them.
What is location marketing?
Here are some examples of how location technology could work in the real world:
- Smart retail experiences – When one of your customers comes within the vicinity of your store, they receive a text alerting them to a special offer on a brand of jeans that they previously purchased. They also receive a push notification that notifies them of all of the items on sale that day that they might like, based on past purchases. This could be beneficial because when people receive a beacon advertisement about a product, they’re 19 times more likely to interact with it in the store.
- Optimized pizza delivery – When someone opens your app to place an order, they see all of the nearby pizza places and an estimated time for delivery for each one. They tap the location they want to order from, and see all of the specials there that they’d be interested in based on their past ordering history. If they choose to do carry out instead, they receive a push notification with a special offer for a discount on drinks or side dishes as they approach the storefront. They are then periodically sent push notifications with discounts at the same time of day that they ordered last time.
- Enhanced comfort at a hotel – Your guests check in at your hotel with their smartphones just by walking through the front door and without having to visit the front desk. They then use their phones to enter their rooms without a key and to order room service. Once they’re settled in, they see what interesting events are taking place nearby and buy tickets through the app while earning loyalty points that they use towards upgraded rooms or discounted rates for future stays.
- Interactive sporting events – When people enter the parking lot of the stadium, they’re pushed an alert to participate in a sports trivia game in which they’re playing against other fans. The grand prize could include a seat upgrade, food discounts, having their app username flashed on the big screen, and of course, bragging rights.
- Real estate that tells a story – When people come to the open house of the home you’re selling, they receive text messages as they enter each room telling them what type of room it is, what its dimensions are, and what fixtures or amenities it offers. They also receive suggestions for how to use the space based on their demographics – if they’re a young family, a smaller room could be for their kids, whereas if they’re empty nesters, it could be an office.
These are just a few examples, but as you can probably see, the applications of beacon and location technology for marketers are endless. What are some of the ways that you could use location technology for your business?