The concept of location-based marketing has been known to retailers for a long time now. On a traditional and simplified level, retailers know that placing messages and advertisements at the right time and the right place is advantageous for their business. But in the modern day, the concept of location-based services is more diverse. A lot of retailers are already reaping the rewards by implementing location-based marketing in their day to day operations. As with the rest, it’s only a matter of time before they resort to these services to further their retail ambitions.
The popularity of Location-based Marketing
The advantages that location-based services offer brands and retailers are plenty and even a little overwhelming at times. We all know that it helps in sending messages to customers based on where they are located. But, the important thing is to understand what in turn it leads to.
Firstly, location-based marketing ensures that customers don’t waste time slogging through irrelevant advertisements. Only personalized and highly targeted content is pushed through to people on their mobiles and other IoT devices with regards to their location. As a result, the person’s interest is immediately aroused and now the person may be referred to as a potential customer. The potential of scoring a conversion increases when the notification or message sent to the customer influences him/her to visit the store. Thus, we see how location based marketing can help in arousing customer interest, increase in-store traffic and pave the way for a possible conversion. The popularity of location-based services has only been growing among brands and retailers. Consider the following statistics.
- As many as 75% of brand marketers feel that location-based marketing is important for their business strategy. (Location Based Marketing Association)
- According to a study conducted by Research Now and Qualtrics, 70% of executives will look to implement beacon technology for location-based marketing by 2021.
Getting out of Traditional Geofencing
Geofencing helps retailers mark their territory by selecting the space within which the customers will be able to receive marketing and promotional messages in the form of notifications or SMS. Most retailers adopt the conventional strategy of geofencing by setting up the virtual perimeter around the basic location of the store. Retailers implementing the location-based services should look to derive as much advantage as they can out of it. For example – instead of deploying promotional messages just within the virtual perimeter of the store, they can look to reach more prospective employees by being a bit more flexible. For instance, a sports and athletic brand might want to make their promotions available to customers in the nearby gymnasiums and sports complexes in addition to the immediate perimeter of the store for more benefits. Thus, flexibility and creativity are the keys.
Increasing the number of footfalls inside the store with Mobile Coupons
We have already discussed how geofencing can help in bringing customers in-store. There are a lot of ways retailers can use location-based marketing to increase store footfalls. One such way is to entice customers by sending mobile coupons to their respective smartphones. Customers might get persuaded at the kind of offers presented and make their way to the stores.
At this day and age, there is no consistency as to where customers regularly shop, i.e.- online or offline. Brick-and-Mortar retailers should look to take advantage of this situation by being proactive and sending these mobile coupons to the customers’ smartphone. This will surely make an impact on customers and help retailers increase store traffic. This is validated by a survey conducted by 3Cinteractive. As per the report, around 75% of people feel that mobile coupons have a huge influence on where they shop.
Thus, it can be said with a lot of conviction that location-based services in retail will go a long way in helping brands and retailers prosper with regards to their marketing initiatives.