How to Use Location-Based Marketing to Drive Conversions

On a very basic level, location-based marketing allows businesses to target consumers by monitoring their geographic location.

In this article, we dive deeper into the technological aspects and achievements of location-based marketing. Keep reading for all the information those in the tech industry should know about location-based marketing.

Types of Location-Based Marketing

There are two main types of location-based marketing that have been making waves. The first is geofencing, which is a location-based service that uses a consumer’s position within a digital “fence” or perimeter to prompt a call to action. For example, businesses using geofencing might send users a notification about a current promotion when that customer walks by their store.

The second main type of location-based marketing is geotargeting. This technique is also a location-based service that tracks a user’s position inside a designed perimeter, but it factors in user preferences and interests as well. For example, businesses using this technique will examine consumer data to target not only those in a specific region but also those with an interest in a particular industry.

For example, Whole Foods uses a type of geo-targeting called conquesting — or placing geo-fences around nearby competitors and targeting ads for Whole Foods to customers in that physical location.

Location-Based Marketing vs. Proximity Marketing 

Although both location-based marketing and proximity marketing rely on location technology, there are several key differences. 

Proximity marketing uses technologies like near-field communication and beacons to keep track of a user’s precise location. Since it uses more narrow pinpoints instead of wider geofences, proximity marketing provides businesses with a more exact idea of their target market than location-based marketing.

However, location-based marketing has the potential to engage a broader group of people.

Location-Based Marketing Achievements

To give you an idea of the influence of location-based marketing, here are some of its abilities.

Improving the Customer Experience

For starters, location-based marketing has transformed the customer experience. It allows businesses to gather feedback from customers at just the right time. Since the technology knows when a customer leaves a store, businesses can send requests for ratings and surveys at crucial points.

In addition, location-based technology provides a more frictionless shopping experience. Businesses are able to use customer location to anticipate their needs at every step in the shopping process.

Encouraging In-Store Visits

Location-based marketing can also encourage users to come into the store by powering push notifications when customers are nearby. 

Even better, businesses can send their potential customers alerts about offers happening at nearby locations. That way, consumers have all the more reason to stop by.

Driving Transactions

Customers appreciate personalized messages, and knowing their location can help businesses customize offers to suit their purchasing needs.

One technique businesses use to personalize customer notifications and prompt transactions is emphasizing urgency. If a customer receives a notification that an offer at a nearby store is expiring soon, they may be more inclined to make a purchase.

Retargeting

Location-based marketing can also enhance the customer journey beyond the first transaction. Increasing the number of touchpoints can encourage customers to keep coming back to a store.

For example, businesses can use location-based marketing to send past customers reminders of their purchases and experiences when they’re near the store’s location. From there, they can notify customers of current offers and encourage them to return.

Location-based marketing is a powerful technology for marketers to increase conversion rates by homing in on a hyper-targeted audience.

Michaela Wong is content marketing specialist at Siege Media.