Consumers are turning to their mobile devices more and more to search for their favourite restaurant, local pub or shopping centre. With smartphone usage and technology having grown increasingly more sophisticated, location-based marketing is all the hype at the moment. The question is, what exactly is location-based marketing and how can companies benefit from it?
Location-based services allow you to find out more about your existing customers. When sending communication about a particular offer or special, marketers can track the resultant take-up rates. This not only provides consumer insights, but also valuable information about their buying behaviour. For example, if you have a buy 1 get 1 free special through your app, you can track how many consumers took you up on that offer and how soon after it was communicated. That way, when you have another special on offer, you will already have a good idea regarding which customers will be interested and which will not.
Location-based marketing is particularly beneficial for retailers as it not only drives foot-traffic to their stores, but also creates an awareness among potential consumers. Apps allow consumers to use the GPS function on their phones to search for nearby businesses, as well as their detailed information such as the company’s website, directions to stores, or discount coupons.