Meaning of location-based marketing
Location-based marketing is a type of marketing in which the location of a mobile device of the owner is used to get information about the product offerings of the businesses that are operating in nearby areas. Location-based alerts can be sent through smartphones using text messages. This is the marketing method which can be changed with the change in location of the potential customers.
Importance of location-based marketing
The following are the points of importance of location-based marketing:
- Attract more customers while improving service for existing customers
Location-based marketing is very important as it attracts new customers while improving the products and services that they offer to their existing customers. Location of the mobile devices of the users of the product and services can be used to market the product and services to the new as well as existing customers. It helps in generating the awareness of the product in the audience. This type of marketing helps in reaching the target audience at any time which helps in persuading the customers more to visit the stores and buy the products. In this way, the lead can be generated very easily as marketing can be done any time which makes it convenient for the marketer as well as the customers.
- Boost in-app conversions and response rates
Today’s economy is of a kind in which everyone wants to seek the attention of the marketers. Due to ineffective mobile marketing, many businesses have lost their crucial revenue as well as their identity. Location-based marketing is the best type of marketing which can be used to grab the attention of a large number of customers. As the use of mobile-friendly apps is increased tremendously these days, such type of marketing has a great impact on the business. The response rate of the customer has increased significantly. Various researches have been conducted which reflected that location-based marketing is very appropriate for the customers as it helps in identifying the location of the potential customers so that the products can be offered to them accordingly.
- Increases revenue with location marketing
The other important point of location-based marketing is that it helps in increasing the revenue. Location marketing is very much effective and helpful in increasing the revenue of the business no matter in which industry the firm is operating. Retail and sports industry are the two industries where the maximum use of location-based marketing takes place. Most of the customers even today like to make their purchases from the traditional brick and mortar stores as they do not rely on e-commerce websites for their purchases. Even if the traditional stores are preferred by the customers then also the landscape of the retail sector has entirely changed in the last few years. The decisions about the product purchase are taken by the customers with the help of in-store, online and mobile devices. The retailers prefer location-based marketing as this is very much relevant for them to catch up with their customers and provide them products as per the needs and requirements of their geographical area which helps in retaining the customers with the business for a long time and provides richer in-store experience to the customers. In the US, this location-based marketing is used by almost all the major league baseball stadiums in order to promote food and merchandise during the live games.
- Helps in improving the relationships with personalized experiences
The other point of the importance of location-based marketing is that it helps in improving the relationships with the customers as all the experiences of the customers with the brand or the business are highly personalized which allows the organization to retain the customers for the long periods. Only delivery of goods to the customers is not sufficient in order to build the image and reputation of the organization, the experiences of the customers with the product and services also matters a lot. The customer experiences are of the utmost importance these days. Customers want that the brands understand their needs and preferences very well so that the product should be catered to all their needs and requirements and the required value must be obtained from the product which means that the customers want personalization in their products.
- Richer behavioral data
Another important thing associated with location-based marketing is richer behavioral data. Information is the most important and crucial resource for the businesses as it makes organizations being aware of all the details that are required by the organizations about their target audience. Location-based marketing offers many advantages to businesses. This type of marketing helps in displaying the right message to the right customers and also allows them to gather the data which is highly relevant for the organization that helps in predicting the behavior of the customers. Location-based marketing is very much appropriate for the hospitality industry as it helps in displaying notifications about flight and hotel bookings on the mobiles of the customers at the right time.
Type of location-based marketing
There are different types of location-based marketing which are as follows:
- Location-based social media
This is a type of location-based marketing in which the business is present in social media locations like Facebook, Twitter which allows two-way communication between the business and its customers.
- Check-in based contests and games
In this type of location-based marketing, the rewards are given to the users for visiting the store locations. This helps in retaining the customers with the business.
- Geo-targeted text and display advertising
The promotion of products or services using mobile media with the help of location-based services. The targeting in this type of location-based marketing is of two types which are user targeting and message targeting.
- Embedded icons
This is a type in which the logos are displayed on the maps which helps the user in determining the proximity or location of the user. This type of advertising is displayed without the search terms and is purely based on the interests of the users or customers.
- Local search advertising
Local search advertising is used by local retailers in order to advertise their products. These advertisings are used in order to display product advertisements only to the people in the relevant geographical location.
Benefits of location-based marketing
There are various benefits of location-based marketing which are as follows:
- Low-cost and highly targeted
The costs involved in location-based marketing is very low and are highly targeted. This is one of the greatest benefits of location-based marketing. Whenever the business completes its page on location-based services, it is able to get free advertising. This form of marketing is very inexpensive compared to other forms of traditional marketing. As the location of customers is known the audience can be highly targeted.
- Know the customers better
The other benefit of location-based marketing is that it helps the businesses in knowing their customers very well. As the location of customers is known, the needs and requirements of the customers can be identified to a great extent by keeping in mind the geographical needs of that location. This also helps in understanding the existing customers more. Reviews of different users and feedback help in knowing the customers more.
- Reward loyal customers
It is very important for the organization to retain its existing customers in the business for a longer period of time rather than focusing only on the new and potential customers. When the business focuses on its customers it makes them stay with the business. In this way, the customers are loyal to the organization.
- Attract new customers
The location-based market is the best type of market which is able to easily attract new customers online. These customers can be easily persuaded to try the products of the business for the first time and then by providing effective and efficient services they can be retained with the business for a long time.
- Convert impulses into sales
The other benefit of location-based marketing is converting impulses into sales. This type of marketing helps in removing barriers to sales. When the customer is within the close proximity to the store location then it becomes very easy for the business to persuade the customer to purchase the product from them by providing attractive offers to them.
- Improve the rankings of your search engine
Location-based marketing helps the businesses a lot in improving the rankings of the search engine of the business which helps the business to appear on more search engine result pages. If the business pages are filled by the organization on various search engines which includes Google, Yahoo, Bing, etc. there are more chances for the business to appear on more search engine result pages.
- Helps in measuring results
Location-based marketing helps in providing all the details and relevant information about the customers to the business which helps them in providing better services to their customers. It also helps in estimating the number of people who check-in for that particular business or location and also gives an idea about the number of people who used the site more often and also the number of people who have used such offers that are made by the businesses. Such information is very relevant in measuring the success of the business organization.
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