It’s clear that location data has immense value – especially for brick and mortar businesses that want to build a reputation in their area. But all too often, better results are left on the table when teams are unaware of all the ways location data can be used.
Location-based marketing is just what it sounds like – targeting your audience based on where they live, where they’ve recently visited, or where they’re currently at. Thanks to the widespread adoption of smartphones, it’s now possible to understand how most consumers move and interact in the real world – not just online.
Aside from brick and mortar stores, brands that are participating in limited-time events or hosting pop-up shops can benefit from targeting local consumers who will be in the area or attending an event. Location data can encourage people to visit a specific location and track those visits as they occur.
Reach the Right People with Geofencing & Beacons
Geofencing technology uses cell towers to allow businesses to draw boundaries around the areas that interest them. These targeted area can be as small as a one-block radius or as large as an entire city. If a business owner needs more information about customers in a given location, geofencing is a direct way to obtain nuanced data insights. You can set geofences to determine which days or times are most popular for visiting a certain neighborhood. Geofences work best for larger areas, while beacons are more appropriate for reaching customers in the immediate vicinity.
Beacons allow you to target consumers who are just steps away from your location with special offers and deals. Beacons use Bluetooth technology to automatically recognize devices – typically smartphones – in the area. This allows for the right people to see your offer at the most convenient time – when they’re close by. Unlike geofences, beacons are more flexible in that they can be moved as needed. Businesses with multiple locations can make use of this data, as well as businesses that are considering opening additional locations.
Crack the Offline Attribution Code
Location data helps solve one of the most challenging problems marketers face: tracking offline customer behaviors. It’s a gray area many marketers struggle with – how to identify how a customer moves from Point A (learning about an offer), to Point B (making an in-person purchase). But interestingly, the majority of businesses have not yet implemented location data to fix this blindspot.
Businesses need to understand the full customer journey, and technology makes it easier to do so when everything is online. For example, a customer can click an email marketing link and makes an online purchase – no mystery there. But what about a customer who is targeted with a mobile ad and then visits a store?
Whether you’re running a social media campaign, print ad, mobile app offer, or anything else, you need to know its true ROI. Location data helps illuminate which offers customers are taking action on. This empowers businesses to see which marketing channels are most effective and which ones need work.
Track Visit Frequency to Create Customized Offers
Because most consumers don’t make a purchase the first time they interact with your brand, having several touchpoints is key to building brand loyalty.
What can businesses do with visit frequency data (how often customers visit stores)?
First, they can intervene if their own customers are switching to a competitor’s products or services. In the same vein, they can reach out to a competitor’s audience who is dissatisfied and shopping around for a new brand. Brands can also target more frequent shoppers for special holiday offers and sales.
Get Creative with Consumer Insights
Location data isn’t just about drawing customers to your location – It’s about getting creative and finding ways to meet your customers where they are. Dominos launched their outdoor hotspots service in 2018, showing how location intelligence can be used to give customers a convenient new way to interact with brands. Dominos customers began ordering pizza from beaches, parks, and other hotspots.
Aside from reaching customers where they are, brands can learn about their needs and interests based on where they go and why. Discover what types of stores certain demographics prefer, or how far they’ll travel to a competitor’s store. These detailed insights can help fill in the gaps and complete the story of your target audience.
With the vast majority now owning smartphones, location data is quickly becoming ubiquitous. Whether it’s GPS, weather reports, local news, or app-based delivery services, most mobile users are already benefitting from location data.
Because data is now being shared so rapidly and at such scale, it’s important for companies to make sure insights are being accessed ethically. This means taking proper security precautions and ensuring user data remains anonymous. This will undoubtedly be an ongoing conversation as businesses and consumers navigate new territory in information sharing. If companies harness data responsibly and with consumer privacy in mind, it will be a win-win for all.