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Location-based Marketing: Overcoming Challenges and Scoring Conversions

The massive use of smart phones across the globe has made it imperative for retailers to resort to location-based marketing. Once retailers are sure of the exact location of the customers, it becomes easier for them to get the attention of the customers by providing them with personalized offers and messages. Besides, this form of marketing is very lucrative for the retailers with regards to scoring a conversion. In most cases though, this is only possible when customers are willing to share their location with apps. There are a lot of reasons that justify their reluctance to do so. Marketers will have to devise ways to negate this reluctance as much as possible. Once they successfully do that, they will be well on their way in registering record conversions.

location-based marketing challenges  

Overcoming the challenge of location-based marketing

As mentioned earlier, there are a lot of reasons that make people apprehensive about sharing their location. The first reason is that of privacy. Customers are skeptical that most brands share their data with other third parties without their consent. Now obviously they would want to do without unwarranted external invasion. This leads to irrelevant, generic offers flowing into the customers’ phone in abundance. To avoid this entire scenario, they opt out of sharing their location. To negate this, brands need to reinstate the trust back into the customers. The customers need to be re-assured that their data will be protected. Even if their data is shared, the customers should be made aware about it first.

Secondly, it is tough to grab the attention of the customers. A lot of other services request the location data of customers. This can flood the customers’ mobile with an obnoxious number of messages and notifications. To gain visibility amidst this existing noise can be a difficult proposition. In such a case, the content of the messages becomes very important. Customers will only pay heed to the message if it is relevant, contextual, and customized. Needlessly flooding their mobile with generic messages will only lead to customers turning their location setting off.

To the advantage of retail marketers, customers today are more tech savvy than ever before. Millennials, making up a huge chunk of the population are not shy of sharing their location. The elder contingent too is trying to follow suit. But even then, maintaining relevance and safeguarding the privacy of the customers should be of paramount importance for the retailers.

The scope to score higher conversions

Proper knowledge about the location of the customers allow retailers to send them the most relevant, and personalized offers. Once it grabs their attention, they are bound to be interested. This increases the chances of scoring a conversion for the retailer big time. Experts claim that location-based advertising is twenty times more effective than banner ads and other conventional ads.

It’s all about winning the confidence of the customers. Once the customers feel that the brand respects their privacy, and pays heed to their personalization needs, they will automatically be anticipating more of the brands’ location-based content. Location-based marketing is already in practice among various brands and retailers across the globe. With its’ growing popularity, more number of people will resort to sharing their location in the times ahead. In this regard, it must be said that the future looks quite bright for brand and retailers.

About Abhishek Mitra

Content is King and Abhishek Mitra firmly lives by it. He is highly committed & passionate in what he does and it's evident through the content that he produces. An MBA Graduate in Media & Entertainment from Whistling Woods International (Mumbai), Abhishek has acquired expertise on developing content pertaining to various verticals overtime due to the sheer knack for it. Apart from being an inspirational scriptwriter in his teenage days, he has worked as an academic research writer in the past. Presently, he handles the content for Tickto.

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