Location data is a big part of everything we do, including it into your marketing strategy is an effective and important step into predicting future behaviors and building relationships with your ideal consumer
People are now expecting to have a much more tailored experience when they shop. Because of this, retailers are collecting as much information as they can about their customers – from online purchases to a log of every customer-employee interaction. Location is another source of information that will be critical in helping businesses to better understand the customers they are trying to reach.
For each consumer there is a huge amount of data points that businesses already acquire about them. But location should be regarded as one of the most important pieces of information on a customer a brand can have, as it it informs the content of advertising as well as the method itself.
Location data provides context, and this is why it’s so important. If you only had data on purchase history, it might allow you to spot some patterns, but it doesn’t provide you with what motivates them to do something. Whereas being able to layer location or proximity data on top of an existing customer profile and then being able to push them an ad of product when they’re nearby it gives a much better chance of gaining a conversion from that person.
An example of a brand that has used location data brilliantly is Herradura Tequila. They teamed up with Foursquare to raise awareness of the brand among drinkers of premium spirits by designing a location campaign. Using a list from Foursquare, ads were targeted to people who had been near stores that supplied Herradura in the past or who were likely to buy premium alcohol.
With location and CRM data, the goal is often to go beyond real time and try to predict people’s future behaviour. For example, if you know from data that a person is more likely to respond to an ad while they’re shopping than while they’re at work, you can tailor promotions to that individual which will in turn lead to more successes.
It’s now even more easier for any company to incorporate location services into their advertising methods or CRM profiles with the profusion of products and services related to location data. An example of this is with Snapchat’s geofilters – for a small fee anyone can now advertise their company in a certain geographical area and keep track of those who use the filter.
Instead of relying on a catalogue of past interactions, location allows advertisers and brands to be proactive about reaching customers. We spend most of our time out in the real world, so being able to reach people more effectively, such as out in the street by using this location data, cuts through all the noise online and is excellent news for marketers.
Knowing the general patterns of a customer’s behavior is an extremely valuable resource. Such as with CRM, location has the power to redefine the relationship between the customer and business. Location is the perfect way for companies to figure out what their customers get up to in the real world, and how to use that information to their advantage.