4 Tips For A Successful Location–Based Mobile Marketing
4 Tips For A Successful Location Based Mobile Marketing
Within a week, this ad campaign’s Cost Per Click reached 7 cents because its Click-Through Rate was more than 8%.
With location-based marketing strategies, marketers mostly show their audience what they’re already familiar with.
And when this happens, CTR gets higher and the cost incurred for every sale reduces.
Whenever CTR goes high in advertising, the CPC rate reduces.
In fact, this location-specific campaign generated 2 sales of $25 each in just 294 clicks.
The campaign’s total cost was around $20.58.
So the net profit was – $50 – $20.58 = $29.42
See? This is the power of location-based mobile marketing. To explore it’s potential even more, keep reading further.
1. Leverage Geo-Targeting for An Effective Location Based Mobile Marketing
Geo-targeting is a system that leverages an IP address, Wi-Fi, or GPS of a device to target customers.
This process uses a location that can be country, state, or city, depending upon the level of geo-targeting.
Let us show you how marketers geo-target on Google.
So we want to find a restaurant in California to have our supper.
We search “Ohio restaurant”, and here’s what we get at the top:
Can you guess why these restaurants are appearing on top? Well, they did location-specific SEO.
The idea behind this type of marketing is specificity.
We narrow it down to individual customers with an offer that they’re more likely to consider.
Other than local SEO, we can also leverage geo-targeting by running ad campaigns on:
- Google Search
How AT&T Used Geo-Targeting to Get Nearly 100% Open Rate
AT&T used geo-targeting to offer several rewards, offers, and coupons to nearby people using ShopAlerts.
Geo-targeting helped them get:
- Nearly 100% open rate
- 50% of the total people gave consent for texting
- 22-25% converted and became AT&T’s loyal customers
How Can Geo-Targeting Benefit Your Location Based Mobile Marketing Strategy?
Through Geo-targeting, you exercise your digital rights and use them to your advantage as it:
- Strengthens your brand
- Improves visibility of your businesses
- Makes the relation between you and your customers better
2. Use Geofencing in Your Location Based Mobile Marketing to Generate A Good Conversion
The primary need for geofencing is an app or software.
In Geofencing, the app or software you use generates a pre-programmed action, which in most cases is a message on a device.
When the mobile device or RFID tag enters or exits a particular location boundary, the app triggers in one of the following ways:
- Cellular data
#Fact: Did you know Geofencing is compatible with more than 90% of smartphones?
Look At This Example: How Starbucks Used Geofencing to Compel David?
Once David – a coffee enthusiast – was around a Starbucks outlet and received a push notification.
The message was:
Yes, this is how Geofencing works!
5 Main Benefits of Geofencing Location-Based Mobile Marketing
- Better and specific customer targeting
- Convincing becomes easier since you only target nearby people
- Access to insightful data metrics like traffic patterns, stay durations, engagement, etc.
- Personalize your customer experience to cater better to their needs
- Get a competitive advantage because others might underestimate geofencing
Tips to Use Geofencing Effectively
1. Make small fences: Always target a small area as people far away won’t even think of visiting the store
2. Set up fences according to the audience: Don’t just think of setting up geofencing around your store; target, target those locations where your target audience hangs out more
3. Make sure your readers take an action: Make your message catchy by giving your readers an offer or a discount
According to a study by Marketing Drive, businesses that leverage geofencing saw more than double CTR in mobile ads.
Once you master the art of Geofencing, the earning potential it brings is limitless.
3. Geo-Conquesting Keep You Ahead of Your Competitors
For Geo-Conquesting to work, you don’t necessarily need to have a better product than your competitors.
You basically need to portray yourself better.
So the primary element required for geo-conquesting is geofencing and mobile location data.
Let us show you how you can use both of these to gain more customers.
a) Use Geofencing in Geo-Conquesting
Suppose you have a shoe shop.
Your biggest competitor is just across the street.
Your competitor knows what geofencing is and leverages it to bring in customers.
But you’re 1 step ahead!
You’re aware of geo-conquesting.
Now you can set up a geofence in the same location as your competitor and start targeting your competitor’s customers.
Give them an extra discount to lure them into your store and sell your product.
As long as you’ve a better or same quality product with a greater discount or offer, this method works.
b) Use Mobile Location Data in Geo-Conquesting
With location data of devices, you can know where your target audience is heading.
Targeting these customers, you can introduce your store, give them a welcome discount, and get more visitors.
How Hyundai Outcompeted its Competitors with Geo-Conquesting
Hyundai had a methodical approach for out-competing its competitors.
The company leveraged Geo-Conquesting and gained an edge over competitor brands like Toyota and Mazda.
Here’s what they did:
Step 1: Hyundai mapped all the stores of Toyota and Mazda including themselves online.
Step 2: They grouped Mazda and Toyota stores with the help of geofencing lines that were near Hyundai stores.
Step 3: Whenever customers stepped inside or outside a Mazda or Toyota store, they received an ad from Hyundai.
Step 4: Using mobile location data, Hyundai also targeted people who visited any of the 2 store outlets earlier.
This campaign was a success and gave Hyundai a 50% better CTR than the average industry CTR (4 percent).
4. Discover the Potential of Proximity for Location Based Mobile Marketing
Some of you might’ve heard of proximity marketing as hyperlocal marketing.
Proximity marketing uses location technology to communicate with customers via a portable device.
There Are 3 Types of Proximity Marketing You Can Use
1. Beacon Technology
As the name suggests, Beacon technology leverages small beacons.
The wireless transmitters use Bluetooth to send signals to smartphones and other devices in the vicinity.
The journey of Beacons began with Apple.
In June 2013, Apple launched iBeacon as an integral part of iOS 7.
Every beacon is equipped with:
It works by repeatedly broadcasting out an identifier.
An identifier is a unique ID that any smart device can read.
This identifier is picked up by smart devices (in most cases a cell phone) and it pinpoints a location.
In this case, the beacon is programmed to perform a specific function, as soon as the cell phone picks up the identifier.
This task in marketing campaigns is to send messages on cell phones.
2. WiFi Proximity Marketing
Everyone loves free WiFi. When you access the WiFi at any store, you become a potential lead for that shop (even if you don’t buy anything).
The moment you sign in to the WiFi, you start getting promotional messages and notifications about the store.
This is what we call WiFi proximity marketing.
For sending messages, the store owner requires an app that can read the WiFi signal.
With the app, one can determine if a prospect is inside or outside the store.
The store owner can then use this information to send promotional messages accordingly.
WiFi proximity is better than beacon proximity marketing.
The range that WiFi provides is much greater than a Beacon’s range.
Also, the setup cost for WiFi proximity marketing is less as it doesn’t require some hardware to catch the signal.
With WiFi proximity marketing, one can track:
- Number of existing & new visitors
- Number of returning visitors
- Total number of views on a campaign
- Dwell time
- Visitor’s age
- Visitor’s gender
3. RFID/NFC Proximity Marketing
Nowadays, 2 technologies that come in handy with a cell phone are:
- Near-Field Communication (NFC)
- Radio-Frequency Identification (RFID)
These 2 are leveraged by shop owners to gain more customers and make transactions quick and easy.
You can leverage RFID/NFC in proximity marketing by attaching micro transmitters to all the products you sell.
The best way to put these transmitters on a product is in the form of a barcode.
This type of proximity marketing doesn’t require WiFi or a Beacon.
As soon as a customer scans the barcode (micro transmitter) on the product, all the information about the product is transmitted to their phone.
If a customer likes a product or wants to buy one, they can simply do this from their phones immediately.
How McDonald’s Leveraged Beacon Proximity Marketing to Achieve A 20% Conversion Rate
McDonald’s is one of the best location-based marketing examples.
They wanted to promote their new coffee-flavored beverages in Istanbul, Turkey.
It has about 15 outlets in Istanbul and wanted to try out proximity marketing for all of them.
The Shop Genie app, a popular Turkish app was used to achieve great results via Beacon Proximity Marketing.
Using Shop Genie and beacon, McDonald’s targeted people in the store’s surroundings by creating Geofences.
This gave McD a conversion rate of 20%, that’s huge!