Location data evolves as an essential tool for today’s marketers to gather consumer insights, engage with consumers, and measure business success.
Instant Consumer Insights at Scale
Today’s marketing channels are complex, we have seen marketers moving in an agile way to stay ahead of market. For instance, social listening tools are common to manage fans and followers. Retargeting tools are powerful to engage with potential customers along the decision cycle. How does location data play a role here? CMO has collaborated with CIO / CTO to deploy Wi-fi services, beacons, and loyalty app. The combined solution allows marketers to monitor in-store traffic, identify new versus repeated customers, and understand customer’s path to purchase. Advance marketers may work with a neutral location data provider that brings in 3rd-party market insights of competitors consumers and benchmarks owned physical outlets. Once marketers gather these consumer insights at scale, instant marketing strategy and measurements are easier to be executed than ever before.
From Location-based to Audience-based Marketing
Geofencing and Conquesting are two common location-based marketing strategies.
- Geofencing – marketers define an area on a map and reach out to people nearby via various medium, including traditional SMS, push notifications, and social media (SnapChat Geo-filter).
- Conquesting – marketers geofence competitors locations and reach out to competitors customers.
However, marketers should not treat location-based services as an one-off practise. Instead, joining multiple location signals per customer will give an enriched view (demographic, interest, purchase intent, etc) and tie back to a single “Consumer Profile”. For instance, a consumer is spotted at kindergarten in the morning, a commercial building throughout the remaining day, and grocery before night, this consumer is most likely a working mom. A grocery brand does not want the brand message appear to this working mom when she is right inside competitor’s outlet. The new playbook is audience-based marketing: bring your brand message in front of your targeted consumer profiles (those who have been spotted in your competitor’s location) BEFORE they make another decision and step into competitor’s outlet next time. Remember, consumer profiles are built for repeated audience-based engagements, measurements, and further enrichments.
Measurements and Attributions
Marketers may use location signal to measure the effectiveness of marketing channels. For OOH campaigns, marketers count the reach and most importantly to understand “who” an advert has exposed to. Digital marketers attribute shop visit uplift or offline sales conversion to smart TV and digital campaigns. By working with a third party vendor coming with rich location signal and consumer profiles, marketers may even measure if a customer has churned and shopped elsewhere. Measuring marketing campaigns with location signal is easier said than done. To kick start, we suggest marketers test on a single marketing channel at a time to avoid channel conflict.
Thank you for reading! Feel free to share with us your current practises, use cases, and forward plans around location insights.