Pinpoint the Right Location-Based Marketing Approach

For a brand like REI, this is the type of location-based marketing experience that transforms trail running enthusiasts into fanatically loyal customers. Retailers can use geofencing technology to aid conversion and improve customer experience.

Although this example may seem intuitive, marketing leaders focused on mobile strategies struggle to identify the location solution that best suits their objective. Select location solutions based on how they contribute to your specific marketing objectives, such as lead generation or increasing share of wallet, rather than focusing on the technology first.

“Marketing leaders must choose the right combination of approaches to achieve an optimal result,” says Charles Golvin, Senior Director Analyst, Gartner for Marketers.

Many marketers employ geofencing to drive conversion — for example, triggering an offer when a customer is close to a store. The technology is useful for improving loyalty and customer experience. When Uber alerts customers entering Los Angeles International Airport how many cars are available, it’s using geofencing.

Geofences can extend beyond owned properties and points of distribution. A hospitality brand like Starwood Hotels could geofence airports and train stations to welcome visitors with links to ground transportation and local information sources when they arrive at their destination city. Don’t only focus on customers entering a geofenced area — look for opportunities to invite customers back or ask for their feedback when you detect that they have departed.

Deploy beacons to increase loyalty and understand behavior

Beacons are connected devices, using Bluetooth low energy (BLE) or Wi-Fi, that communicate with one or more predetermined applications on mobile devices within the range of the beacon.

Marketers use beacons to achieve objectives similar to those of geofences, but targeting a tighter radius since beacons are more precise. A department store such as Nordstrom aiming to increase conversions could craft distinct offers for cosmetics versus women’s shoes and segment the different parts of the store accordingly. Brands seeking greater advocacy can push out surveys and requests for reviews.

Don’t limit your target audience for beacon use to just the customer: These technologies can assist with analytics and enable employees to improve customer experience. The staff of the Brooklyn Museum uses beacons to provide guidance and suggestions based on a patron’s location within an exhibit.