Tap In: How to Build Customer Relationships With Location-Based Marketing

by J.B. Maverick

3 min read

Consumers’ shopping habits are increasingly affected by mobile and digital technologies that continue to evolve at a rapid pace. With consumers who are constantly on the move, making buying decisions online and purchases from their mobile devices, it can be challenging for your small business to keep up with shopping trends. Tapping into location-based marketing can help your company cash in on the changing marketplace and build strong relationships with current and potential new customers.

Understanding Location-Based Marketing

Location-based marketing is personalized marketing that changes based on where customers are located. The concept behind this type of marketing is a shift from treating consumers like one faceless entity to approaching them based on their personal and social identities and buying habits. Location-based marketing makes educated guesses about a potential customer’s wants and needs based on their mobile shopping habits, such as items they regularly buy, and taps into the potential for impulse purchases based on their location at any given moment. Advances in GPS technology make it easier for you to track consumers, monitor what they buy and when they buy it, and target them on an individual basis.

Targeting Mobile Phones

One of the ways to apply location-based marketing is through customers’ mobile phones. Because consumers use their mobile phones for so many different purposes, including storing much of their personal information, sending targeted advertisements to current and potential customers through their smartphones is a great way make a highly personalized approach. This personalized connection made via mobile phone, along with the convenience it offers your customers, is up to as likely to result in a sale in real life. Offering your customers special deals through their mobile phones offers more than just an excellent chance of making a sale. The personal nature of the contact offers a great opportunity to build a stronger customer relationship. Canadian studies of retail businesses show that mobile coupons and discounts are 10 times more likely to be redeemed than traditional coupons, such as newspaper coupons. That’s a huge difference in successfully engaging your customers. It is important, though, to prevent customers from feeling like their personal space has been invaded or that the security of their personal information is threatened. Make sure consumers know that these specials and deals are tailor-made for them, but only if they want them. Give your customers a feeling of empowerment by offering them the choice to opt in for personalized deals and coupons to be sent to them via their mobile phones or other mobile devices – or to opt out. Reaching out in a personal way while still showing respect for your customers’ privacy concerns allows you to establish a strong relationship with your customers built on trust and respect.

Location Optimization

Offering consumers highly personalized shopping deals is great in theory, but if your company’s website is not optimized for mobile device usage, it will frustrate shoppers who attempt to make purchases with their mobile devices. Touchscreen devices appear to be the present and future of personal technology. To make location-based marketing work, make sure that your business website is optimized to be mobile-friendly. Location-based marketing is an excellent way for your business to do a better job of offering shoppers buying opportunities that meet their wants and needs, matching up well with current shopping trends. Location-based marketing gives your small business the chance to increase sales, broaden your customer base, and strengthen customer relationships to create loyal, long-term customers.

References & Resources

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