Location-Based Marketing (LBM) is a digital marketing strategy that uses geolocation technology to deliver relevant content to customers based on their location. This technology allows businesses to target consumers in real-time and in specific locations, making their marketing efforts more effective.
How does Location-Based Marketing work?
LBM uses a variety of tactics such as geolocation, proximity marketing, and location data to deliver custom content to consumers. Geolocation uses GPS or other location-based technologies to determine a user's location. Proximity marketing delivers messages or promotions to consumers when they are close to a specific location or business. Location data tracks a user’s behavior within a specific geographic area.
What are the benefits of Location-Based Marketing?
What industries can benefit from Location-Based Marketing?
LBM can benefit any business with a physical location, including retail, restaurants, hospitality, and healthcare.
What are some examples of successful Location-Based Marketing campaigns?
- Starbucks’ mobile app that sends push notifications with personalized offers based on customer’s location.
- McDonald's launched an app that used geolocation technology for promotions based on the user’s physical distance from the restaurant.
- Sephora utilizes in-store beacons for personalized recommendations and promotions.
What are some potential drawbacks of Location-Based Marketing?
- Privacy concerns
- Inaccurate data
- Overreliance on technology leading to decreased human interaction
How can businesses implement successful Location-Based Marketing strategies?
To implement LBM successfully, businesses should:
References:
- Fiegerman, Seth. “How Starbucks Plans to Use Mobile to Boost Sales.” Mashable, 1 Dec. 2015, mashable.com/2015/12/01/starbucks-mobile-ordering-app/#Y2A9cLF4xOqN.
- McDonald’s Corporation. “McDonald’s Announces National Launch of Its Mobile Order & Pay Ahead Experience.” PR Newswire, Cision, 18 Oct. 2017, prnewswire.com/news-releases/mcdonalds-announces-national-launch-of-its-mobile-order--pay-ahead-experience-300538546.html.
- Koetsier, John. “Sephora's Latest Mobile App Update Is a Major Step in Its Digital Journey.” Inc.com, Inc., 15 Sept. 2017, inc.com/john-koetsier/sephoras-latest-mobile-app-update-is-a-major-step-in-its-digital-journey.html.
- Bernoff, Josh and Ted Schadler. The Mobile Mind Shift: Engineer Your Business to Win in the Mobile Moment. Groundswell Press, 2014.
- Datta, Alok and Anindya Ghose. "Consumer Location Data in the Wild." Journal of Marketing, vol. 82, no. 1 (2018), pp. 21–39.