Technology is now part of our everyday lives, which is why it is an important aspect of the marketing industry. Our phones are one thing that constantly accompanies us, and even if we miss a lot of things in our immediate surroundings, if something pops up on our phone, we are bound to see it. Whether it is a social media presence or emailing customers, or location-based marketing, one way or another, businesses are constantly using customer devices to reach out to them.
One of the key aspects of any business is the right marketing strategy. For example, black Friday is one of the biggest retail events of the year globally. Although every business is advertising their sales and offers before the day, it is important that your business is not just visible but rather stands out to attract customers. Therefore, you need innovative and fresh ideas and the right marketing tools to promote your business.
Location-based marketing is not a new concept, but it has been found to be an extremely effective marketing tool. According to a 2019 location-based marketing report by Factual, almost 90% of marketers stated that location-based advertising and marketing resulted in higher sales. Another 86% reported an increase in customer base, and 84% mentioned customer engagement.
So let’s look a bit more into what exactly this is, what this form of marketing can offer you, and how it can help you increase sales this Black Friday.
What Is location-based marketing?
As the name suggests, geolocation-based or location-based marketing uses the customer’s location to market to them. Many apps and websites ask for users’ location, and users often have their GPS on, so marketers utilize this data to provide a location-based marketing experience. For example, if you search up clothing stores, you will see stores in your area or city first, even if you have not mentioned a city or region.
There are multiple methods of location-based marketing, such as Geotargeting, Geofencing, Beaconing, Mobile Targeting, Geo-Conquesting, etc. However, the most commonly used ones are geotargeting and geofencing.
Geotargeting uses the IP address of a user to determine their location, which is then used for marketing. Localized search results, as mentioned before, are an example of this.
On the other hand, geofencing creates a border around a region using GPS. Whenever someone enters this border, they become part of the target audience. So, for example, if a shop picks its periphery as the border, the people passing by could receive advertisements.
Beaconing utilizes Bluetooth and Wi-Fi to connect to devices and customers. However, it benefits existing customers and people in a small proximity.
Mobile Targeting uses cell phones to reach customers; an example of this can be social-media-based advertisements.
Geo-Conquesting again uses GPS technology to reach out to customers. However, this creates a boundary around a competitor’s business; for example, if you create a boundary around a competitor’s business, the people passing by it would receive advertisements from your business.
Perks of location-based marketing
More targeted approach
Location-Based marketing allows you to have a more targeted approach to finding and reaching out to customers. You can also figure out what is more popular in a certain area and then use that for marketing. It makes the advertisement more personalized, which can increase customer engagement.
Increase in customer base
Since you are reaching out to your customer based on their location, anyone who enters the location becomes a target audience. So even if someone is temporarily in the locality, they will receive advertisements from your business during their stay. For example, if someone is near your store ahead of Black Friday, they may receive the notification regarding it at the time and might come back to visit the store.
Increased in-store visits
If used right, this marketing method can increase foot traffic in your store. For example, if a customer is near your store and receives a notification at the time, they are more likely to walk into the store and look around.
All these things combined can obviously increase revenue temporarily and in the long term too. In addition, having a robust customer base means that people will visit your business again and again and would inform others about it too. All this can boost your sales, not just on Black Friday but even afterward.
What to keep in mind when using location-based marketing?
Address privacy concerns beforehand
When it comes to customer data and customer location, there are a lot of privacy concerns around it. To ensure that there will be no trouble when you use the location data to reach out to customers, you should reach out to a legal advisor beforehand and understand the legalities of the process.
Pick a method that works best for your business
There are various techniques of location-based marketing. For example, geotargeting and mobile targeting would suit you better if you are an online business. But on the other hand, it could also use geofencing.
Create engaging content for each location
Once you have picked which method works best for your business, you should create engaging content specific to different locations. For example, you could create eye-catching Black Friday posters featuring different locations that you can send to customers based on their location.
You can even send push notifications or emails to your target audience if you have an event in their areas, like a store opening or a sale.
Use social media platforms effectively
Having a social media presence is extremely important; you can link your social media accounts to the ads you send. For example, ahead of Black Friday, you can create countdowns or have polls that you post on social media to keep customers engaged. You can even create filters for certain locations so the customers in that location can use them.
Overall location-based marketing is still an untapped market that shows quite a lot of promise when promoting businesses. When used right, it is a cost-effective marketing tool that can help a business grow. Smart and tactful utilization of this marketing tool can help improve business by increasing customer engagement and bringing in more in-store and online customers. So this Black Friday, use this marketing tool and some innovative marketing ideas to make your business stand out.