How Retailers Can Leverage Location-Based Marketing in 2017
There are many exciting facets of mobile that open up worlds of opportunity for customer and business expansion for retailers. And while mobile marketing is still just scratching the surface, one strategy is sure to become more in focus for retailers in 2017: location-targeted marketing.
What is Location-Based Marketing?
It sounds like something from the future, but personalized location-based marketing is here and is growing in popularity. In fact, 75 percent of brand marketers believe location-based marketing is an important element to their business strategy, according to the Location Based Marketing Association.
What makes location-based marketing so popular among both marketers and consumers is that it eliminates irrelevant ads by presenting the consumer with content that benefits them based on where they are. Location-based marketing strategies can be 20 times more effective in providing returns than generic ads.
Here are some ways retailers can implement location-based marketing into their next campaign:
It’s OK to Get Creative
For merchants that are new to the location-based marketing world, a geofence is a virtual perimeter for a geographic location in the real world. Geofencing allows retailers to select the space in which consumers will be presented with their promotions. It's obvious that brands will want to set up a geofence close to their brick-and-mortar stores, but with a little creativity, merchants can reach more potential customers. For example, an athletic store might benefit from sending promotions to customers who are at a gym or sports complex.
Location Marketing Can Drive Foot Traffic Through Mobile Coupons
It's rare to find someone without his or her smartphone on them at all times. Beaconstac notes that smartphone penetration per capita has risen from 9.6 in 2011 to 31.3 in 2016. Retailers can use this to their advantage by sending customers mobile coupons to entice them to come spend money in their stores. A survey by 3Cinteractive reports that 75 percent of customers say mobile coupons have an influence on where they shop. Combine geofencing and mobile coupons to drive foot traffic to physical stores.
The Additional Power of Social Media
There are over 1.65 billion active mobile social media accounts globally, with 1 million new active users added every day according to We Are Social. That said, why not get some free endorsements from some of those mobile social media users? By offering incentives to customers who “check in” with a retailer on social media, the business is gaining exposure to that customer’s social network with very little effort.
Use any of these tactics individually or a combination of them all to create a cutting-edge marketing strategy for the new year. Location-based marketing will continue to grow. Retailers and merchants should strongly consider incorporating it into their strategy in order to remain on their A-game.
Margie Kupfer is the vice president of marketing at 3Cinteractive (3C), a mobile marketing company.