Zeroing in on Your Consumers With Geo-Marketing
Mobile geo-marketing is growing at a rapid rate. This growth is driven by applications such as navigation, local search and social networking, as well as the public's understanding of location-based marketing. With the increasing comfort level of sharing location data, brands are turning to location-based marketing to tap into consumers' behavior to deliver more timely, personalized mobile experiences.
Geo-marketing comes in a variety of flavors that utilize different technologies depending on how you are communicating with your consumers:
- Geo-Fencing: This method is essentially a "virtual fence" designed to enclose a specific area for a marketing purpose. For example, a retailer can run a geo-fencing campaign where they "fence" in an area around their stores for the purpose of pulling in consumers who are near, but not shopping at their stores. Geo-fencing is not location detection in itself, but the geo-fences you setup—and the business rules you define as to what message to communicate to consumers when they are inside, or outside, those geo-fences—can be leveraged in conjunction with location detection capabilities.
- Broad-Range Location: Some campaigns can leverage general area, such as city or ZIP code, to determine the right message to communicate. For example, an airline simply needs to know the metro area a consumer is closest to in order to personalize offers for flights out of the nearest airport. Location detection in this case does not need to be highly accurate to get the job done, and can generally be supported through most any mobile interaction.
- Geo-Conquesting: This specific method of geo-targeting allows businesses to capture consumer spend away from competitors. The effectiveness of these campaigns can be further enhanced if the technology partner you are working with can layer on additional data that helps to understand the consumer better, such as third party sources that identify likelihood to purchase certain types of product.
For this article, let's focus on geo-fencing. What you need to know is that geo-fencing simply needs to be paired up with a location detection technology, such as GPS or carrier network triangulation. Once detected to be inside a geo-fenced area, a brand can then alert potential customers who may not have visited your store otherwise. Retailers can also choose to send information, such as directions to the store, or run hyper-local promotions.
Mobile is going to continue to grow as will its use as a way for brands to interact with their customers. However, the mobile device is far more personal than your email inbox. Fortunately, there are ways to implement a mobile marketing strategy that delivers relevant information that your customers want to receive. By understanding how your customers want to engage with you will help you build loyalty and in turn, help you see faster returns on your marketing investment.
Greg is a 12-year mobile industry veteran and vice president of mobile solutions at Hipcricket, Inc., where he's responsible for the vision and strategy to deliver consumer experiences that increase mobile engagement and lifetime value across mobile messaging and advertising, mobile websites, social media and branded apps