LOCATION-BASED MARKETING

Daria Shanogina

What is Location-Based Marketing?

Location based-marketing is the interaction with customers by their location offering value based opportunities to increase customer loyalty and social sharing.

It is like a fun game that allows users to Interact ShareMeet upRecommend places based on their

physical location

BenefitsAwareness of favorite stores’, clubs’,

theaters’ and restaurants’ promotions and coupons while in the area

Awareness of events, schedules while in the area

Ability to participate in events such as polls while in the area

Receive maps and directions while in the area

Location-base marketing can deliver ads people want to see where they want to see them

Bottom line: More foot traffic =>more profits for business owners

There are over 20 location-based applications

Classification of specialsNewbie Check in specialLoyalty specialRaffles Friends specialFlash specialSwarm specialMayor special

Best Practices Subway in the UK has

joined a campaign ‘You Are Here’. When users are near a Subway store, they’ll be sent an MMS to alert them, and distribute vouchers that can be redeemed by scanning them with mobile devices in the store.

Best Practices Ski Resort in Vermont rewarded

their Mayor with a reserved parking spot right at the base of the mountain.

InterContinental Hotels Doubletree, Hampton Inn, Hilton and Starwood Hotels consolidate digital check-ins on major social-media apps, such as Gowalla, Foursquare and Facebook. Those who check in or post location-tag photos of a hotel receive 50 InterContinental loyalty points.

Best Practices In December 2010, Foursquare

users spent 350% more than the average Radio Shack customer. The goal was to drive new customers to stores as well as reward loyal visitors, enticing them with discounts ranging from 10%-20% off. The Radio Shack foursquare page grew over 20,000 during the campaign.

Best PracticesIt ran a check in special that offered

a free dessert to foursquare members who purchased an entree. As a result, over 400 people came in and redeemed the Special, estimated ROI of $18,000, 60% of the users were checking in for the first time.

To promote the opening of its new hub at San Francisco International's Terminal 2, the airline encouraged customers to announce their presence at the terminal by digitally "checking in" using Facebook and Foursquare.

Best PracticesThey use guests' mobile

phone Bluetooth capability to track their whereabouts and send event reminders and deals, such as healthy drink coupon for guests working out in the gym or a happy hour reminder.

They gave the first five users to check in to the store in the morning a 20$ gift card.

Best PracticesOffered 24% off of one item for

users that checked on with 3 foursquare friends.

UK-based retailer has partnered with  SCVNGR to get students into stores for back-to-school shopping. Players choose the reward they want — a 20% in-store discount or a chance to win a £500 shopping spree — and complete challenges to achieve the required number of points.

Other brands marketing through location-based services

How to get the best from location-based marketing?Learn the platformsDetermine your goalsEstablish your presenceCustomize Implement promotionsEngage with your customersTrack everythingBe prepared to adapt

Privacy concernsMore than 60% of respondents in a 2010 survey by

Microsoft said they were concerned about

location-based profiling.

Privacy comes down to personal choice, not what the technology allows you to do.

Besides, concerns about privacy and anonymity might fade with offer of a few great deals.

Questions