location-based marketing

Location-Based Advertising and Marketing

Personalized advertising is no longer a futuristic vision as in Steven Spielberg’s Minority Report, but more and more frequent requirement of clients, which modern shops, malls or restaurant chains are facing today. And this is possible thanks to beacons.

The first thing is to dispel tabloid fears. Spielbergian visions of advertising which serves as a means of surveillance and which is based on biometric systems is the direction unwanted by creators of beacon technology.

Beacons do not track, nor report or interfere with our privacy and anonymity. For this product, we can be Mr. X or Mrs. Y, and then we decide how much data we want to reveal about ourself. A beacon, namely the system it uses, is not interested in our identification and privacy, but it is in our needs. And we, thanks to the opt-in, we have the control over what information will reach us.

Beacon technology is currently the most promising tool in advertising and sales based on geo-location (Location-Based Advertising and Marketing), which benefits both the seller and the buyer. How is this possible?

A seller may indeed count on the fact that its marketing activities will be personalized in the best possible way, so that advertisment, discount offers and loyalty programs do not fall on deaf ears, but to the right recipient at the right time. This significantly raises the level of retention.

A client, contrary to initial reports of anxious new technology journalists, can expect in the end that will not be flooded by offers that neither interest him nor even relate to him. Moreover, he or she can set up the smartphone so as to be informed only about offers that address the very specific needs. Thus, If you are walking at a shopping mall, you can be notified only about the presence of shoes in your size or discounts on specific items that interest you.

Disappointed with the lack of the desired goods the customer is not going back to the store, especially when she had to lose valuable time on fruitless search. But handled properly and quickly, she can become a loyal customer.

Alex Boese, a historian of science, wrote in 2007 that the key to success is to "operate quickly and carefully". Until recently, one has often precluded the other. But thanks to beacons client receives the exact information he demanded, and he is supported "quickly and carefully" by the system that does not make mistakes, which helps to avoid the disappointment. This in turn affects the growth of retention a key value for sellers.

Proximity Marketing is an element of location-based advertising. This proximity system operates in two modes - Push and Pull Messaging.

In the former case, a client receives specific information when he is within a beacon range. Pull messaging is a reverse situation, in which the buyer decides to get the information about a product or service by placing the smartphone near the beacon.

This method is applied by GameStop, American computer game store. The company does not send any information to its customers, but it offers the ability to download it by approximating the smartphone to the shelf with an interesting product. Thus, it is us who decide what information we want to, and we do not face the slightest solicitation.

With a systems based on beacon technology, a customer will not have to search for goods or attractive discount any more. Desirable items or sales will find the customer, providing him with comfort, convenience and time savings.