Locational data is highly valued in the retail industry. For brands with physical stores, its use is nearly immediately obvious. It’s why 66% of retailers place some importance on permission-based geo-tracking.
But even though retailers place more importance on location data than other industries, and creative design agencies have long appreciated such insights.
Locational marketing (LBM) is a marketing tactic in which geo data is used to profile customers. This strategy has only been in use for the last twenty years. Still, the principle of learning more about customers’ lifestyles and journeys has always been put to good use by store owners and merchants.
Incorporating locational data can help the marketing effort and benefit brands of all types. Here’s how.
Real-time targeting
We all know the importance of personalization and presenting offers and information when they are most relevant. Locational data can help send highly targeted ads and promotions to specific users. Picture sending a request when a customer is settling into a town where you have a presence. You can send them an invitation to your store or event accordingly and personally welcome them to the city.
Improve Segmentation
Whilst locational data can be helpful for immediate, targeted ads, it is even more critical for improving the usefulness of your campaigns over time. That’s because location data allows for more precise segmentation. For example, it is an essential demographic when considering which users would benefit from sending an email or offer.
Adding behavioural data into the mix allows you to consider behaviours in a new context. For example, you can now consider what it means for a group not to have stopped into a store for a long time. What might have looked like disinterest before may well be linked to an inconvenient distance or accessibility issues?
Customer Insights
Consumer insight companies like to collect locational data because it can provide a richer understanding of complex behaviours combined with analysis. This enables the construction of better buyer personas and introduces essential elements of their lifestyle. How long, for example, do they commute to work? What distances do they travel? How do they spend their time in different places? This, in turn, gives context to when they spend the most time on social media or when they might be most receptive to ads and offers.
On top of this, locational data shines a light on interactions with your own brand and your competitors. For example, you might be able to see how customers travel to different businesses over time and adjust your marketing strategy accordingly.
How to Obtain Locational Data
The best geo-data allows brands and market research companies to track customers. The importance of this is that consumers can trust how their information is handled and give their permission for geo-tracking. Therefore, treating data confidentially and with excellent security is vital.
With current and emerging geo-based technologies, marketing could transform in years to come and enable brands to understand customers more effectively. For this, a loyal and trusting relationship between brands and customers is a priority.
So why would customers give out this information?
63% of internet users welcome targeted promotional discounts and are interested in brands using locational data for this purpose. Locational data can be a win-win for both sides so long as there are clear benefits to consumers.
Locational Marketing Strategies
Here are a few examples of how brands and insight companies use locational data in marketing.
Geofencing: Geofencing is the process of setting virtual boundaries to enclose a specific area. This can measure how much time a customer spends within a particular region and how often they are nearby. In turn, brands can offer customers incentives to visit the store.
Geotargeting: This is the practice of delivering advertisements based on someone is situated. Geofences, as above, can be used to deploy geo-targeted ads. Brands can meet consumers with personalised ads and offer where they are.
Beaconing: Beaconing is a marketing technique used to engage customers when they are already in store. It can monitor where consumers are walking or standing in real-time and then send customers advertisements of nearby items that might be relevant to their interests. Beaconing is a great way to increase sales and successfully use up and cross-selling techniques. It is another way to bridge the gap between online and offline marketing.
Innovate on your Marketing with Locational Data
The methods mentioned above are just a few ways in which locational data can inspire your marketing efforts. With Augmented Reality on the rise and phones always in the pockets of your consumers, there is no limit to how you can create more locationally relevant marketing for your brand. Creative design agencies can take LBM marketing one step further by incorporating geo data creatively into ground-breaking marketing campaigns. This is where consumer insights and creativity meet. ZAK Agency is an innovative marketing agency based in London that works with unique brands to develop campaigns never seen before. Got an idea? Get in touch for a chat.
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