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How Retail Brands Can Implement Location-based Marketing

  • Updated: 28 September 2020
  • 5 min read

There’s been a divide between online and offline marketing in the retail industry for a while now. There are social media and SEO, giving retail stores more visibility online. There’s also AR and VR that enhance in-store experiences for customers. But today's customers have come to expect a seamless experience from brands. Location-based marketing helps retail and other industries in achieving this.

The Indian retail market is set to reach $1 Trillion by 2020, and much of that is due to the rise in technology adoption. Cutting edge marketing technology has allowed brands to use the power of AI. Also, an increase in consumer engagement on different channels opens new mediums for marketing campaigns. Users actively engage with brands on mobiles, tablets and personal computers.

Why Location-based Marketing Is Important for Retail?

Digital platforms nurture immense potential to grab customer attention. But what if we can use these platforms in a better way? We cannot forget the valuable micro-moments that occur in any online shopper’s journey on a daily basis. Micro-moments are instances in which the probability of campaign conversion is high. Let's say a user receives a push notifying an ongoing offer in a nearby store. There are high chances that the user will stop by at the store to check out the offer. Thus a user passing through the vicinity of the store is a micro-moment. As we can see here, location is one of the pivotal factors which improves the conversion chances. Keeping this in mind marketers are swiftly adapting location-based marketing.

Retailers use location-based marketing in many ways. From big brands trying in-store promotions to smaller stores looking to understand consumer behavior, the focus on location-based marketing is immense. As the holiday season sets in, retailers need every tool in the box to blend their offline and online marketing. Take a look at the following ways of implementing location-based marketing to understand how it can help you grow your marketing effectiveness, customer retention, and ROI.

Keep up with On-the-go Consumers

As per the Factual Location-based Marketing Report, nearly half of the U.S. retailers use location-based offers. It helps them to draw shoppers to their retail outlets at the right time.

Staying connected with consumers who are always on the go is challenging. Location-based marketing serves as the bridge to connect with these customers. Consumers can receive real-time push notifications, alerts and emails at the right time. It is an ideal way to connect with the users when they are most likely to hear from you.

Also, in-store validations and offers can be sent when a user walks-in the retail store. Retailers observe many retargeting opportunities while creating user journeys for a customized experience. These retargeting opportunities could be easily targeted through real-time triggers.

Increase Brand Loyalty

Personalized content helps consumers to relate to a brand instantly. Global trends suggest more than 77% of consumers expect brands to deliver personalization.

Customers trust brands when they receive relevant messages based on their interests. Thus adding relevance in marketing campaigns increases brand affinity. Sending marketing campaigns based on location is an excellent way of adding relevance.

For example, when a guest checks into a hotel and receives all the information necessary via a message on the app. This message is triggered by the location-based event. Thus the guest can have more information in the palm of their hand.

Increasing brand loyalty with location-based marketing

Increasing brand loyalty with location-based marketing

As competition grows in the retail sector, brands are increasingly leaning towards agile marketing practices. Sending event-triggered campaigns based on location is a remarkable way to achieve this. This increases immediate conversion as well as customer loyalty. Increased efforts into the consumer loyalty space help in recurring revenue generation.

Empower Consumers at the Right Time

Location-based marketing is all about enhancing the in-store experience. It can also use previous customer interactions on offline as well as online platforms to do so.

Many times, customers leave stores without understanding the full range of available offerings. Online, customers click on ads or add a product to cart, but don’t complete the transaction. Location-based marketing bridges the two by empowering consumers at the right time. It provides more information and customizes the messaging per their previous interactions. Let's say a customer has a history of purchasing a certain type of items. They’re probably willing to experiment only within that domain. For new customers, a generic message (promoting new items, range, etc) will be helpful.

Empowering consumers at the right time with location-based marketing

Empowering consumers at the right time with location-based marketing

Create a Perfect Cross-channel Experience

Location-based marketing allows a real-time connection between distributed cross-channel experiences. Your consumers can receive instant messages and interact at the right time. Location-based marketing campaigns for retail are immensely useful to create coherent customer journeys.

Marketers who want to focus on an omnipresent experience can do so with location-based triggers. Connecting different sets of behaviors and consumers is also much easier. Customers following different paths are linked in a standardized flow for acquisition.

Co-partner for Marketing Optimization

CMOs around the world have started to deep dive into the location-based marketing. Location-based triggers coupled with AI-powered push notifications have become popular within the retail sector, especially in co-branded campaigns.

Co-partnering and marketing optimization with location-based marketing

Co-partnering and marketing optimization with location-based marketing

With co-branding, customers can receive customized notifications educating them about other useful products. These campaigns could be used inside a mall, a shopping outlet or a unique store within a geofence. This helps in connecting with an already established user-base and is an effective strategy for entering new markets or higher-tiered customer segments. Retailers don’t need to offer deep discounts or reduce the equity of your brand. They can bank on the relevance and value provided by their products to the specific user base. This has been one of the biggest drivers in the location-based marketing domain.

Using location-based marketing in retail brands are effective when you nail two important factors; time and context. With personalized messaging brands ensure that they send relevant marketing campaigns. With location-based marketing, retailers can also ensure to engage the customer at the right time.

These top uses of location-based marketing for retail brands are available on Slideshare - take a look.

What are some ways in which you’ve implemented location-based marketing for your company? Share your thoughts and questions in the comments section below.

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About The Author
Komal Akulwar is a certified inbound marketer with extensive experience in driving growth for B2B product startups through content and social. Apart from exploring the literature and performing arts scene in the city, she can talk for hours on how Yoga can help you strengthen your mind and body fitness.
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