Leveraging the latest technology paradigms, local and hyper-local marketing is helping businesses explore outreach and sales opportunities most relevant to them, in real-time. It helps pinpoint local audiences, when they are around the business (or at a location you need them to be in), and broadcast promotional content, so it is available to users when they’re looking for it. This technology has dramatically evolved in the last few years beginning with SMS push-ads to social check-ins based targeting and promotions.
However, there are a few roadblocks in this direction, hindering expansive growth and adoption of the technology. These are challenges every marketer eyeing location-based technology must be aware of, so they can find a way around it to get strong ROIs for their clients.
It is an opt-in feature: In most cases, location services must be switched on by users and therefore, there is no direct access to send them information (as is possible with SMS or email marketing services) unless they explicitly agree to let you do so. Further, users need to be explained why their location needs to be shared, and how the marketer would use that information. Studies show that 40% of smartphone users do not want to share their location data, meaning that’s a bunch of audiences you will not reach out to.
Privacy concerns: Users often have concerns over privacy breaches via location data, and hesitate from sharing it with all apps. It is important to win their trust, as a brand ahead of requesting location data, so they know what they get out of the arrangement, and are comfortable with sharing their location information.
Undependable accuracy: As much as marketers would like to depend on mobile location services data for marketing, they must note that this information is not very accurate, as mobile internet efficacy varies widely across regions. While some large cities enjoy uninterrupted internet access, some smaller regions might not necessarily support this technology. This leads to inaccuracies and campaign failures.
Despite all these challenges, location-based marketing is still a lucrative option for marketers for multiple reasons. Once they figure out a way to mitigate these challenges, there is a wide array of benefits that can be achieved, that is unique to location-based marketing.
Know which places your intended audiences frequent and target them: Once you identify your target customer groups, you can follow their locations through their mobile, and understanding locations they frequent. You’ll have a fair understanding of where they live, work, shop, eat and entertain themselves. Such behavioral information may easily be converted to promotional outreaches to target them.
Gain better response rates: Mobiles users today are highly aware of their digital environments. They are always looking out for local offers – be it at restaurants or at a retail store. Since they’re already in the mindset of looking for better options, your location-based messaging will hit them in the right spot, at the right time.
Know who frequents your location and re-target them: Your store location may be used as a target space to identify who visits you and how often, and you could use that information to improve after-sales and follow-up/ repeat sales effectively. This not only reduces cost on new customer acquisition but also improves customer engagement and loyalty.
Benefit from better-engaged audiences: Engaging your customers with useful and beneficial information, to improve their liking for your brand. Share brand updates, offers, discounts and other promotions that they can directly use, to improve brand awareness, likeability and sales conversions.