LBM – Location Based Marketing – has been the trend for new mobile marketing since 2016. This is supported by Beaconstac that say 75% of marketeers say that location based marketing will play the important role. he primary trick in any location-based marketing strategy lies in getting consumers to actually share their location information.
LBM is pioneered by check-in apps such as Foursquare, Whrrl, and Path has been using the same concept with LMB. Those apps use location based service to let people know where they are and connect them with others.
Check out this video about LBM:
There are several brands that use Location-Based Marketing:
1. Whole Food supermarket chain.
Whole Food using LBM by partnered with the location-based marketing firm Thinknear – location based mobile advertising. The supermarket chain tapped into Thinknear to place geofences around a number of Whole Foods store locations and targeted ads and special offers to mobile users who passed by. Moreover, Whole Food also placed geofences near competitors’ stores to target ads at shoppers near competing grocery stores, thus incentivizing them to travel a bit further in exchange for better deals at Whole Foods.
2. Barney’s New York Department Store.
The luxury department store launched an iBeacon platform with its mobile app to alert users when new content is uploaded, as well as help customers navigate the store. When customers near a Barneys store he or she will receive notifications based on what’s in stock that’s also in his or hers mobile shopping bags or wish lists, as well as recommendations based on the content that he or she recently opened on The Window, Barneys’ in-house publication.
Using LMB is appropriate for more targeted and low cost marketing because LBM is highly geographically targeted and more advanced forms of location-based marketing (e.g. offers) so it is very affordable compared to many traditional marketing methods. Brands that using method can spot what is the trend now and create offer for that.
By using LBM, it is highly possible to track new customer. Imagine that you walking on department store and suddenly you got message about the offer that’s happening in the store. It is more likely you got attracted with it and want to now about it.
LBM also helps to remove barriers to sales. Once a customer is physically close to your store, you have a far better chance of persuading them to purchase from you.
Beside LMB is so attractive for marketing strategy these days, but according to MarketingLand, some people still concern for using it because of security problem.
Can you spot what problem there are with LBM?
Write down below.