Location Based Marketing – What Works and What Is Not Working Yet

January 20, 2011

Small Business Thursday Tip Of The Week:

Location, Location, Location

Phones using Foursquare. Location Based MarketingLocation based marketing could work, the idea is sound the technology is there but it hasn’t quite taken flight yet, at least not on all fronts. The way it might work in a perfect social environment is that the customer checks into the store and it could be one or it could be one of many. Their customer account might be linked with their buying history, in fact it should be.

A concerned store manager would be able to see this customer is a repeat customer, they might actually have flags on that account if the customer had problems with it. Then the manager could move to improving the experience. If they always ordered steak at a particular restaurant or always bought a particular type of ice cream it should show on their account as well as an positive or negative responses. In other words marketing with the aid of location based marketing could be configured to the customer’s past experiences, their buying history and turn a reasonably happy consumer into an ecstatic advocate of the store or service.

That is the potential however, the problem is that the system must be implemented and large chains may have issues standardizing their POS systems, and it does require a little foresight and oversight by management. In other words there have to be alert staff available to foresee a customer’s needs and they must be motivated to suggest new products, correct an oversight or a bad experience for this new technique to be valuable.

On the other hand, Tasti D-Lite has integrated social networking into its incentives program. When a customer earns reward points by purchasing a product their purchase and rewards are tweeted automatically the incentive here is more reward points.  This company is also experimenting with iPad apps for their stores.

Social Networks like Facebook and Foursquare are now offering Location based specials. Check in at these places and you might just unlock a special discount or reward.

Google also offers very geo-targeted advertising taking advantage of where people are when nthey are searching and offering location based results.

These are just a few of the ways to take advantage of Location based marketing.

Have any other ideas? Please share your ideas and comments below.

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