Location-Based Marketing Tips for Small Business Owners
Location-based marketing uses location data to understand consumer behaviour so you can serve consumers relevant ads.
Understanding Location-Based Marketing: A Strategic Approach
Imagine receiving a text message notifying you that your favourite online retailer is hosting a pop-up event in your city, perfectly timed with your weekend plans. This level of precise targeting is made possible through location-based marketing (LBM). By leveraging data related to time and place, businesses can adapt to local events, weather conditions, and individual behaviour patterns, delivering highly relevant marketing content to their customers.
What is Location-Based Marketing?
Location-based marketing utilises online and mobile device data to target users based on their current location or location history. This approach enables brands to present tailored content to potential customers, often encouraging specific actions. For instance, a local retailer might send a notification to a customer within proximity, alerting them to promotions available at a nearby boutique.
Types of Location-Based Marketing
- IP Targeting: This method uses a customer’s unique IP address to determine their location, allowing for targeted advertising. For example, Google employs IP targeting to display local search results when users inquire about nearby services, such as restaurants or parks.
- GPS Targeting: Similar to IP targeting, GPS targeting utilises GPS data to send personalised messages to app users. For example, during an unexpected cold snap, businesses can notify customers nearby with offers on warm clothing.
- Geofencing: This technique establishes a virtual boundary around a physical location, enabling brands to send messages to users who enter that area. For example, messaging can be deployed at a conference to engage attendees.
- Geoconquesting: This strategy involves targeting customers near competitor locations to encourage them to consider your brand as an alternative. Promotional offers can incentivise customers to choose your business over others.
- Beaconing: Utilising proximity-based technology, beaconing sends messages to consumers when they come within range of a connected device, enhancing engagement through localised offers.
Best Practices for Implementing Location-Based Marketing
- Gather Consumer Data: Analysing location-based data can provide insights into customer behaviour, helping refine your marketing strategy. Identifying which areas are most relevant to your brand allows for targeted hyperlocal marketing efforts.
- Localise Creative Assets: Tailoring marketing materials to reflect local preferences can significantly enhance engagement. Including bestselling products in a region and adjusting messaging to resonate with local nuances can lead to better outcomes.
- Optimise Timing: Strategic timing of messages can enhance their effectiveness. Consider when customers are most likely to engage, whether immediately upon entering an event, when hunger strikes, or following an in-store visit, to maximise impact while maintaining audience trust.
Location-based marketing offers a dynamic way for brands to connect with consumers, fostering personalised interactions that resonate on a local level. By strategically employing various LBM techniques, companies can enhance customer engagement, optimise their marketing efforts, and ultimately drive business success.
