*Written by Mae Cornes*
Today’s fiercely competitive entrepreneurial game poses two challenges: seeking innovative strategies to captivate the target market and understanding the changing consumer behaviors and preferences. Consumers now turn away from generic advertising messages and likely engage with brands that recognize them as individuals, understand their preferences, and offer solutions that meet their needs.
This is where location-based marketing (LBM) can provide businesses with a new significant advantage. By adopting location-based strategies, companies can differentiate themselves from competitors who may still rely on more traditional, less targeted marketing approaches. This differentiation is crucial in today’s saturated markets, where consumers are often overwhelmed with choices and seek one that reflects them.
Why Geospatial Data and LBM Marketing?
Utilizing geospatial data is LBM’s competitive advantage. This data encompasses information about the geographic location of individuals derived from various sources, such as GPS, IP addresses, and mobile device data. Businesses can gain valuable insights into customer behavior, preferences, and movement patterns through this information.
Sushant Wason, a leading figure in the geo-mapping services industry and Engineering Manager at Snap Map, explains, “Location-based marketing shines because it’s precise and relevant. It’s all about knowing where our users are and what they might need right then and there. This way, we can offer content that truly resonates with them.”
Wason’s more than ten years of experience in geo-based services and his work in developing Snap Map’s core services, which are utilized by over 350 million users every month, exemplify LBM’s potential to create engaging and personalized user experiences..
Impact on Consumer Behavior and Business Strategies
Adopting location-based marketing has significant implications for consumer behavior. Wason explains that by receiving personalized and timely marketing messages, consumers are more likely to engage with the content and take action, such as visiting a store or making a purchase. This heightened engagement boosts sales but also enhances customer loyalty, as consumers come to appreciate the personalized attention and targeted messages they receive from brands.
The Indian Achievers Forum 2023-2024 International Achievers’ Awardee elaborates, “Location-based targeting allows businesses to speak directly to their customers’ needs and preferences. These insights can inform broader marketing strategies, product development, and customer service initiatives, creating a virtuous cycle of improvement and innovation.” This level of personalization captures customers’ attention and fosters a sense of relevance and connection with the brand or the place.
The Future of Location-Based Marketing
As technology continues to advance, the possibilities for location-based marketing are expanding. Integrating artificial intelligence (AI) and machine learning algorithms enables businesses to analyze geospatial data more effectively, uncovering profound insights and patterns.
However, Wason highlights a downside to innovation: as businesses use more geospatial data, concerns about privacy and data security increase. Individuals are becoming more aware of the value and sensitivity of their location information, which forces companies to find a careful balance between offering personalized services and respecting privacy. This challenges the development of privacy-conscious geo-based services, emphasizing the importance of transparency, consent, and security in using location data for marketing purposes.
Once businesses overcome these privacy concerns, the potential for using geospatial data becomes limitless. Wason also notes that integrating geospatial data with other sources, like social media and customer purchase histories, will significantly influence the future of location-based marketing.
As businesses continue to recognize the immense potential of location-based marketing, the adoption of geospatial data-driven strategies is set to grow exponentially. By leveraging the expertise of industry leaders like Sushant Wason, companies can unlock new opportunities for customer engagement, personalization, and business growth.