Local-Mobile Marketing's Virtuous Cycle - Deals Lead To More Data, And More Personalized Offers
Location-based marketing isn't just about driving foot traffic to local stores through locally-targeted ads on Google search.
In fact, the data gathered from a campaign can be more valuable than the sales generated by the campaign itself. While particular tactics often yield multiple benefits, some tactics achieve specific goals better than others.
In a recent report from BI Intelligence, we looked at six of the most successful tactics that big brands and national retailers are using, beyond paid local search ads. The magic of many location-based tactics is that they create a virtuous cycle. Customers offer their data in exchange for deals, and this data can be used to improve offers for particular customers, as well as targeting and personalization in future campaigns.
Here's an overview of the top local-mobile marketing tactics:
- Make Them An Offer: Just like paper coupons, digital offers can be used to collect data, drive foot traffic, and build brand loyalty. In a survey from Microsoft Tag, 33% of U.S. respondents said they used location-based services to identify coupons. Data from coupon campaigns may include redemption rates, how long it took costumers to act, when and where they redeemed offers, and what they bought.
- Be Social: If you want to boost engagement, think social. People are more likely to buy products when they are recommended by friends and family. In a survey conducted by Market Force, 81% of respondents said that posts from friends influenced their purchasing decisions. Twitter and Facebook offer fairly fine-tuned location-targeted ads, and the ability to adapt content in real-time.
- Share Expertise: Some companies are building brand awareness and goodwill by providing LBS in the form of apps, in exchange for data. The History Channel continues to successfully use this tactic. Users who follow the brand on Foursquare receive historical factoids when they check in at tourist destinations.
- Give Them Access: Businesses seeking to increase both brand awareness and foot traffic have been using free Wi-Fi as a medium to reach customers when they are in the "right" location, including airports and top-flight hotels.
- Be The Transaction Method: Providing a mobile-integrated transaction at the point-of-sale is a great way to get detailed location-based data. This tactic isn't new. Credit card companies have been selling this data to advertisers for years, and it seems like a safe bet that companies that produce mobile wallets and mobile-compatible point-of-sale hardware will adopt this model as well.
- Give Them Location-Based Games, Content And Entertainment: This is a new tactic in the U.S., but not in Japan where location-based games have been used to drive commerce.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
In full, the report:
- Looks at why location is the new cookie
- Gauges the amount of money that is flowing into location-based mobile marketing
- Explains why location-based data is at the center of many marketers' data wish-lists
- Examines why location is extending beyond the smartphone, and embracing cross-screen and tablet campaigns
