We all know the impact that location-based marketing (LBM) has had on retail. For those of you who are still new to the concept, the promotion of business to relevant customers through the context of their location is known as location-based marketing. Effective marketing is all about targeting the right person at the right time, and at the right place. Retailers in the recent past have resorted to micro-location marketing and have had their share of consistent glory. They kind of expect the same in 2017. This year, marketers across the globe will look to implement more of location-based services in their marketing initiatives to continue with their good run. Let’s have a look at a few interesting insights.
Location Based Marketing – ‘The Marketer’s choice across the Globe’
Retailers across the world are more than just fond of LBM. They understand the benefits they are reaping from it on a consistent basis. For this purpose, more and more marketers are willing to implement and make investments in Location-based marketing. As per the second annual Global Location Trends Report released by LBMA (Location-Based Marketing Association), more than 50% of companies across countries like USA, Canada, Germany, Singapore and the UK, target their customers with the help of location-based data.
The study revealed that the primary benefits that LBM offers is that it drives POS (Point of Sale) sales and helps in relevant targeting of customers. Retailers will readily accept this every day of the week. Hence, the urge to invest in LBM. As per the report, 1/4th of the total marketing budget is being allocated for location-based marketing.
The Bright Future of Location-Based Marketing
Location-based services allows retailers and marketers to develop a more personal relationship with the customers. The real-world behavior of customers can be utilized to provide them with personalized offers, which are completely in sync with the customers’ physical location. The top business executives and marketers believe that the importance of location-based marketing will only keep increasing throughout 2017. The major companies in all the countries mentioned above will experience a rise in the use of LBM this year. In comparison to 2016, US, Canada, UK and Singapore will experience a rise by 5%, 6%, 7% and 3% respectively.
Another major reason why location-based services will attain increased importance in the time ahead is because it can be used for other non-marketing initiatives as well, such as customer service. Over 2.5 billion users are predicted to use smartphones worldwide by 2019. This means that more number of people will be walking around in the store with location enabled devices in their pockets. Apart from marketing, location-based marketing can also enhance the levels of customer service by providing customers with additional information on products, inventory availability, product feedbacks & reviews, payment options, etc. based on the customers’ proximity to a product in-store.
Retailers across the globe have already made a significant mark by leveraging location-based marketing. They will look to carry on in the same way in the year 2017 and even beyond. The future of LBM looks bright as global marketers & retailers look to increase its’ usage in the time to come.