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Marketing Location: New Trend In 2018

Targeting the right consumer at the right time and at the right place strongly establishes the company's belief in the impulsiveness of consumers

Photo Credit : Umesh Goswami

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Millennials like to go out and they like to go out often. Restaurants, pubs, cafes, offices, tiny local eateries, popular city spots or just anywhere, they enjoy sharing it with the world. Sharing the location information is the first thing mobile apps ask for too, showing that the trend isn't limited to millennials, but applies to every person using a smartphone. Most of today's digital consumers allow their devices to track location, creating exciting potential for marketers.

The phenomenon of location-based marketing is part of direct marketing strategy that utilizes the user's device location to alert the nearby businesses in order to present a consumer with an offering at the right time and place. The technology revolves around 'geo-fencing', a software feature that sends 'triggers' to alert a business when a consumer enters a pre-defined geographic area.

Using geotagging, a business can target consumers' devices through text messages or notifications, with information about the offers aimed at redirecting the customer. Not only is it attempting to turn prospects into patrons through impulse purchases, but also bridging the gap between the online and offline customer experiences.

Location is a big factor in the success or failure of a business, but with the support of technology and location tracking, prime positioning is no longer as important as it was. Engaging from geographic aspects to business data, marketing location, or location intelligence, has vast capabilities and immense potential. It can be used to turn the tide for hidden business, leveraging data for consumer insights.

The true power of location-based marketing lies in the hands of the user, and luckily for marketers, today's consumers are digitally obsessed. They reach out far beyond their immediate physical spaces to buy a product or service, and brands are taking advantage. Kraft Heinz in Brazil enabled Instagram users to actually eat the delicious food posts they were drooling over, with the help of geolocation targeted to local users. It allowed hungry customers to order directly through Instagram, delivering over 300 burgers in less than 2 hours, and gaining 15 million interactions on the video.

The quality of information, however, still remains an issue, and location data is not always reliable, but location marketing is seen as a tool to organize the data-driven marketing space. Marketers have developed systems to vet and verify data, using GPS information directly from publishers and data service providers to filter out much of the poor-quality data.

The importance of location intelligence and sharing of data goes beyond impulse purchases and increased sales. It helps businesses obtain competitive and transparent insights into consumer behavior, which can be used to develop the new strategies and boost the performance of the overall business. The majority of the answers to the marketing questions of 'how', 'when' and 'who' can be solved with the answer to 'where', which we get through location tracking. It plays a pivotal role in the preparedness of the business, leveraging every opportunity to perform better.

To leverage these insights, Dutch airline KLM created a  GPS-powered, "smart" luggage tag for its customers that was designed to trigger audio advice and tips on what to see and how to navigate Amsterdam, its home base, with voice recordings provided by cabin crew. The campaign allowed the airline to gather vast amounts of customer data, and helped brand improve its image.

Location intelligence or marketing location helps in tracking places, making predictions and ultimately providing a base to make better business decisions. Targeting the right consumer at the right time and at the right place strongly establishes the company's belief in the impulsiveness of consumers. Place data has truly been a cornerstone of location targeting, but moves by Google and Facebook to enhance their local advertising products, making place data even more important.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


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Saurabh Mathur

Saurabh is Head - Strategy and Planning, VML India. He is a true digital native and bring with him years of experience in strategizing and managing digital ecosystems for brands like Club Mahindra, Shiseido and Revlon. As a Lead Planner at VML, Saurabh drives brand and digital strategy for all of VML India’s including ICICI Bank, Moods, Wendy’s and DSP Black Rock. He is pivotal in working with business and creative teams to develop ideas, plans and programs and ensuring a common strategic direction for all brand work

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