How Geo-Location Data Can Transform Retail Marketing
We’re living in the age of the customer; a time where any business, supplier or producer that wants to survive and succeed must satisfy its customers’ needs and wants.
And when it comes to retail, the law has become more binding than ever.
Given the fast-paced growth of technology and the introduction and the consequent spread of online shopping, it is no surprise that the future of the retail industry is becoming more and more uncertain.
Despite the significant changes that the retail sector has undergone in the past years, retailers today still need to continue adapting and evolving (i.e. omnichannel retail) if they want their businesses to flourish.
As far as understanding customers’ likes and dislikes are concerned, many retailers sail the waters without giving it much thought. While it may have worked in the past, it is unlikely to keep their business afloat in the coming years.
To ride the tide of changing trends, retailers must fully embrace customer intimacy.
And one of the best ways to know your customers’ preferences and then make marketing decisions is to learn to use geo-location data to your advantage.
Read on to find out how geolocation data can transform retail marketing.
Location-based marketing to value customers
As a customer, you might not like the idea of being tracked all the time. But as a retailer, knowing where your customers are is highly valuable information.
Successful brands have already been using beacon technology that allows them to pinpoint where their customer is at any given time.
Knowing a customer’s location enables them to send targeted offers, including promotions or push notifications with coupons.
And in case you are wondering how that benefits the retailer, the answer is simple.
If your customer is entering a competitor’s shop looking for a product that you offer as well, you can quickly send them a discount offer on the said item to lure them to visit and buy from your store instead.
Research has shown that over 70% of shoppers who received a push notification made a purchase during store visit, whereas more than 60% also confirmed that such messages prompted them to keep visiting the store more often as it denotes that the store values their preferences.
Geo-targeted mobile ads
Tech giants like Google, Yahoo and Microsoft offer advertisers geo-location services for conducting marketing campaigns.
Conventional advertisements are not as effective when it comes to reaching the target audience.
But with geo-targeted ads, you can rest assured to make a 100% successful hit.
Using information about a customer’s country, state, city, ZIP code and even their income mean that a certain message reaches the exact person it was meant for. Not only does this provide more personalized results for customers, but also cuts down on ineffective marketing costs for the retailer as well.
For instance, a retailer can inform everyone in the near radius of their new store opening or analyze the number of times a person visits a store and use the data to ensure next time they shop at their store.
Taco Bell is an example of how geo-location analytics can develop a strong customer base as they use a GPS locator to sense when a person who ordered a takeaway is nearby so that they have their meal hot and ready as soon as the customer walks in.
So, the next time you run a marketing campaign, make sure to consider the geo-location data first.