What Is Location-Based Marketing?
Location-based marketing (LBM) is a direct marketing strategy that uses mobile devices such as smartphones to offer potential customer products at the nearest sales or service location. Users will receive notifications on their smartphones as soon as they are near a predetermined location and must agree to receive push messages. Location-based marketing requires a single user opt-in, usually associated with application usage. The application accesses mobile location services and notifications are initiated by this location data when the user is in range. The aim is to reach users at the point of sale to promote products and increase online customer loyalty and the relevance of the message being emitted. Additionally, if you need a more accurate type of LBM, we recommend you to learn about geofencing.
The basis of location-based marketing is location-based services such as GPS, GSM modules or RFID chips. On one hand, satellite navigation can be used; On the other hand, mobile radio networks and transponder chips also offer different choices for positioning. The principle is that advertising messages are contextualized. The context is location, which is determined through the technology and shows a fundamental interest in the services offered. If a user is near a location and uses a company application, chances are they can become customers or at least be interested in the service.
Location-based marketing is basically a form of targeting that relies on location data to give users special offers through innovative technology. This can help customers and long-term customer loyalty. It is not only the delivery of advertising messages to prospective customers, but the services that create and, most importantly, complete the company’s portfolio. Customers must be given relevant information in certain situations. Examples are incentives when buying at a store, additional services or just helpful information about opening times, current waiting times, or information about special events and promotions. Customers can be approached with LBM at the right time, in the right place, and with the right message throughout the customer’s journey.
Different approaches exist in the field of location-based marketing such as location determination and the form of approach. One of them is geofencing.
With geofencing, virtual boundaries are drawn, which triggers the delivery of advertising messages when crossed by users. Mobile devices exchange signals and information with navigation satellites or mobile radio towers.