In 2013, Apple launched iBeacon, a technology that allows mobile apps on iOS and Android devices to listen for and react to signals from beacons in the physical world. According to Apple, this GPS-enabled technology allows marketers to target consumers on a micro-local scale and deliver hyper-contextual content to these users.
Location-based advertising (LBA) allows you to send notifications to customers regarding coupons, product promotions, flight delays, reservation notices, priority ordering and more. There are five commonly used location-based advertising tools: iBeacon, Wi-Fi, global positioning system (GPS), Near Field Communication (NFS) and Radio Frequency ID (RFID).
Last year, Starbucks used this technology to roll out an ordering app nationwide. Using GPS, the ordering app determines the customer’s proximity to the nearest Starbucks and allows them to submit a beverage order and pay by mobile device. When the customer is within a certain distance to the store, the barista will start making the drink so that it will be ready when the customer arrives.
Here are three tips to effectively use LBA technology with your customers:
- Choose your LBA carefully. Understand the quality of the data set collected, how it’s derived, how the locations are defined and what its measures are for each type of LBA technology. By educating yourself on each type of LBA, you can partner with the technology that will achieve your specific objective, whether it’s awareness, intent or purchase. Use this infographic to determine which LBA technology is right for your business.
- Balance is everything. Be careful not to bombard your customer with too many messages or content. Overloading the user with information, ads and content will likely result in turning users off to your brand. Remember that, more often than not, your users will need to opt-in to LBA technologies by turning on their location services and accepting the notification push for your business. You want your user to want to use your LBA technology.
- Consider privacy concerns. A customer’s mobile device is extremely personal. Although this allows you to customize your marketing plan to fit your customer’s lifestyle, remember that privacy is still a concern. Establish and maintain consumer trust by informing your consumers on how their information is stored, secured and used by creating an easily understandable consumer privacy and preference management policy.