Marketing requires the anticipation of consumer’s needs and wants. Successful marketing requires delivering these needs and wants at the right place and at the right time. With the advent of location-based services (LBS), brands now have access to valuable information by connecting with consumer’s through their mobile devices.
With the knowledge of time and place, brands can send powerful, more effective messages to consumers. For example, if an individual is studying at a college library, brands like Starbucks can choose to send messages, knowing that most college students run on coffee. The student will most likely respond positively to this message and is now more likely to make the trek to Starbucks in the near future. However, if Chanel sent a message to this student, informing her of new discounts or products, the message would be ignored and ultimately, ineffective. Location is everything.
Thus, brands are beginning to realize the advantages of location-based marketing because it is a tool for securing and improving loyalty, and increasing sales. Once a consumers’ geographic location is known by a mobile app, (from the consumer allowing the app to know their location), information that pertains to the individual’s location and surroundings can be used by brands to deliver branded messages about new products, mobile coupons,
Here is one case study that quantify the success of location-based marketing. From April 2011 to December 2011, Cinnabon verified and updated their nationwide locations of its bakeries in foursquare, Facebook, and Twitter. In doing so, according to Cinnabon corporate communications manager Rachel Hadley:
“The company has seen a nearly 700% increase in customer engagement on Foursquare, Facebook, and Twitter over the past eight months”
To reinforce customer engagement, brands can also reward check-ins and engagement with the brand per specific locations by encouraging consumers to share their locations with friends via Facebook, Twitter, and Foursquare through gamification strategies.