Geo-Marketing in a Mobile World
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Using location services on mobile phones, businesses are beginning to target consumers with real-time, location-based marketing messages on mobile devices. Learn more in this presentation .
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Geo-Marketing in a Mobile World
- 1. Something Geo-Marketing in a Mobile World By Kim Carlson and Patricia Boughton
- 10. Macy’s Men’s Department 10% Off Men’s Sweaters. Today Only
Notas do Editor
- Good afternoon. I’m Kim, and this this Patricia. We are Graduate students at Franklin University, and today we are going to talk to you today about Geo-Marketing in a mobile world. Let's start by imagining this scenario: Susan Shopper needs to find a birthday gift for her father in-law, so she heads to the local mall.
- As soon as Susan parks her car in the parking garage, she hears her phone sound...it's a text message from Macy's with a 20% off coupon. The coupon is good for today only, and it's specifically for the store at the mall she just arrived at. She decides to head straight to Macy's.
- Once in the store, Susan wanders from department to department. She isn't sure what to buy, but she fully intends to use her coupon. When Susan reaches the men's department she hears her phone sound again. It's another coupon for an additional 10% off all men's sweaters. The coupon is good for today only.
- The decision was made, Susan would buy her father in-law a beautiful new cashmere sweater for his birthday….at 30% off the original price. Susan felt like a superstar and she was so happy that she downloaded Macy's mobile app to her smartphone. She couldn't wait to tell her friends about the mobile coupons.
- Now, back to reality. Oh wait, the scenario we just described IS reality. It's a form of geo-marketing and companies are adopting this as one of the newest methods of mobile marketing. Using GPS and Bluetooth technology, Macy's interacted with Susan's smartphone in real-time, with relevant coupons.
- When Susan downloaded the Macy's app onto her smartphone, she allowed Macy's to see her location and to send push notifications. In this example, Macy's used both geo-fencing and beaconing to reach Susan's mobile device. They sent her messages based on her location at the mall and again when she was inside Macy's.
- Are you totally creeped out yet? Utterly offended by the invasion of privacy? Or are you thinking about downloading an app that uses this technology to try it out yourself? Before I completely lose your attention with this picture, let me explain what’s in it for you as a consumer as well as a marketer.
- As consumers, most of us are strapped for time and money. We want to find the best deal in the shortest amount of time, and we want to feel smart. Real-time ads based on our precise location save us time and money. Using a cool app makes us feel smart.
- As marketers, the goal is usually some kind of conversion. Whether it's a click or a purchase, we need to show measurable results. Using this type of mobile marketing allows us to track conversions, get to know our customers' buying habits, and opens the door to a brand new type of marketing for most businesses.
- So now that you know more about what's in it for you, let's talk about how geo-marketing actually works. In Susan’s example, Macy's used geo-fencing to send her a 20% off coupon when get got within three miles of the store, and they used beaconing to send her the additional 10% off coupon when she got within 50ft of the men's department.
- What's geo-fencing you ask? It's location technology that uses the global positioning system (GPS) to define a set of geographical boundaries. Programs that incorporate geo-fencing use triggers when a mobile device enters a certain area. In Susan's case, Macy's sent her a coupon because she has their app, and she (and her phone) got within a specific distance of the store.
- Once Susan was actually inside the store, electronic beacons took note of Susan's physical location using Bluetooth technology. When Susan passed the beacon in the men's department, the beacon triggered a coupon to be sent to Susan's phone through Macy's mobile app.
- So how important was the timing of Macy’s coupons in Susan's decision to make her purchase? The answer is, critically important. To be successful using geo-fencing or beaconing, timing is everything. Companies are harnessing the power of these technologies to capitalize on delivering the right offer to the right person at the right time…
- ...and the only way to deliver an offer at the exact moment when someone might use it, is through mobile marketing. Using in-app pop-ups or push notifications, marketers can send real-time deals that are relevant to the consumer's location. Over time, businesses can track user behavior and adjust campaigns as needed.
- This all sounds like a marketer's dream, right? Not entirely. There are personal privacy concerns for individual users, and mobile marketers should only send promotions with users' permission. Also, creating a friendly user experience through responsive design and easy navigation can be challenging for website designers.
- It's important to follow best-practices and ethical decision making when it comes to gathering and storing personal information about people. We have a few ideas for do's and don'ts when it comes to running mobile marketing campaigns.
- Successful campaign do’s include: testing, tweaking, implementing, and optimizing...and when you think you're done optimizing, optimize more. Campaigns should include online and offline elements when possible. Only collect information from customers that you can take action on, and use analytics to help you get the most out of your campaigns.
- Now on to campaign Don’ts. First, don't be generic. If you're using geo-marketing, make the offer relevant to that market. Also, be cautious when running multiple mobile campaigns at the same time. You may cause confusion with different offers. Last, don't ignore the results. Analytics will help you determine what is working, use them to continuously optimize.
- We’ve covered a lot! Now, I'd like to share some examples of businesses that are geo-marketing. Uber sends a push notification when Uber users land at the LAX airport. Walmart’s mobile app has a “store-mode” that delivers coupons and e-receipts, and the Yik Yak app creates local bulletin boards that allows anyone within a 1.5 mile radius to post to.
- The end result of geo-marketing is a relevant experience for the user and a boost in conversions for the business employing the technology. The consumer may feel like they are getting preferential and tailored treatment... all while not having to go out of their way.