You have probably heard the term geomarketing, or location-based marketing, which refers to basically the same thing. In this blog post, we will define the two concepts, provide examples of how to use geomarketing in the retail industry as well as highlight advantages of doing so. This article will also demonstrate the benefits of using Matchmore's technology to support your marketing strategy. If you are just interested in extending your knowledge in the location-based marketing area, or if you want to get hands-on advice to your business - you are in the right place.
What is geomarketing?
Geomarketing, or location-based marketing, is referred to as a discipline that uses the geolocation in the process of planning or implementing marketing activities. In other words, geomarketing is any form of marketing that incorporates a location in order to improve a particular message towards the right consumer at the right time.
Geotargeting, which is a type of geomarketing, is basically delivering content to users, based on the their previous or current location. Geofencing is another common form within the field of location-based marketing. This concept refers to the targeting of users within an pre-defined geographical area.
Geotargeting is usually website based, while geofencing is more common in mobile applications and devices. Over the last years, geofencing is gaining more popularity as consumers will receive messages or ads that are highly relevant to the environment they are in, which in turn increases the return of investment.
Geomarketing can be used to recommend nearby events, select customers in a certain area and analyze customers' behaviors. The opportunities are almost endless. And all this is available with Matchmore's technology.
Advantages with location based marketing
Here are a few examples how location-based marketing can take your marketing strategies and activities to the next level.
Segmentation is made easier
Segmentation is a marketing activity that involves grouping customers based on shared attributes, interests or activities. A geographical point or area is one of the most effective ways to segment a group of customers. If you know where a potential customer is at a certain moment, you will be able to create a customized message to that specific location, making it more relevant to that customer. A standard geofence will deliver the same message to all bypassing customers. However, a geofence created by Matchmore will be able to send different messages to different customers. This is is enabled thanks to the Matchmore's ability to attach various information to the same geofence/area. Segmentation can be specified based on geographical information and an additional filter such as interest, age, sex, shopping behavior etc.
Generate more business while spending less
Using geolocation features in your marketing activities will increase the impact of your message, while lowering the amount of spend per prospect. Since it's highly geographically targeted, you will be able to reach more of your best customers without spending a fortune on non-relevant target groups. Even the most advanced forms of geomarketing can be affordable compared to many traditional marketing methods. For example, when using Matchmore to your marketing campaign, your costs are directly related to the number of prospects your ads can touch.
Remove sales barriers
Geomarketing helps to remove sales barriers. Once potential customers approach your store, there is a better chance of converting them to make a purchase. In other words, turn passers-by into customers. Also, with location-based marketing it is possible to analyze relevant information and make smarter decisions based on your customers' movements.
Location-based marketing in retail
Location-based marketing can be used in many different industries, across several sectors. However, in this post, we have decided to focus on the retail industry, since this is an industry where geomarketing truly can provide value.
Send highly personalized offers when customers are nearby
Since it's possible to attach multiple information types to a geofence with Matchmore's geofence solution, personalized messages can be delivered to one group, or even to each customer, when they are approaching the store. How about a personalized offer of 25 % reduction of the item the customers last viewed on your website? Imagine to receive an offer of a pair of shoes you researched last night when you are in the same block as a shoe store? Would you enter the store? Probably, yes.
Deliver the right message inside the store
Another great use case for geomarketing can be found inside of stores. Depending on what device is used by retailers, it is possible to deliver highly precise information inside stores. By placing beacons on different shelves, it is possible to deliver product specific information directly to the customers while they are looking at the specific product. Matchmore’s solution, functioning as a middleware, allows to manage beacons and geofences the exact same way. This eases the deployment of the same ads/info indoor and outdoor.
Place geofences around competitors' stores and send special offers when customers are close
Another example, which sometimes is considered as an alternative marketing strategy, is to set up geofences around competitors' stores. An actual example of this strategy is a strategy from the American food market chain Whole Foods. The retailer used a geomarketing strategy to grow their post-click conversion rates on mobile ads. Whole Foods sent personalized offers to consumers’ mobile devices when they approached a competitor store, to attract attention elsewhere. This location-based campaign led to a 4.69 percent conversion rate - more than three times the national average of 1.43%!
Is location-based marketing something for your business?
Does geomarketing, or location-based marketing, sound like it could take your business to the next level? Don't hesitate to contact us.