[NEW APPY HOUR PODCAST] How To Tap Into The Power Of Location Based Marketing

Most all of us carry smartphones. Whether they live in our pockets, bags, purses or cars, they are a part of our everyday life. How many times have you downloaded a new app, and upon installation, you see a message asking for permission to use your location? And how many times have you clicked “no?”

Most all of us carry smartphones. Whether they live in our pockets, bags, purses or cars, they are a part of our everyday life. How many times have you downloaded a new app, and upon installation, you see a message asking for permission to use your location? And how many times have you clicked “no?”

Wesley Hall, Lead Analytics Developer, and his team at Maass Media believe that clicking “yes” might just open you up to a better digital experience with whatever app you’re working with.

On our latest episode of Appy Hour, we chatted with Wesley about Location Based Marketing, in particular, something called geofencing.

What is Geofencing, and How does it Work?

Geofencing works in a couple of ways.

Active geofencing allows an end user, be it a retailer or a news organization, to send you custom notifications and updates while you’re inside of their app.

Passive geofencing allows those same end users to set up a virtual boundary around theirs business, alerting you when you’ve crossed those boundaries.

Think about walking by a store at the mall. If you have the Macy’s app on your phone, they might use a geofence to alert you of a sale inside, or offer you a coupon to come in and do some shopping. You can interact with them when the enter your space, or even when they leave your space. Maybe offering a discount code for the next shopping trip.

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Collecting data from Geofencing

A huge bonus of geofencing is the user data you can collect. Not in a creepy way, but in a way that lets you better connect with your audience.

This isn’t limited to retailers pushing promotions. Think of a news organization being able to custom deliver alerts to you based on where you’re reading the news. Say you’re from LA, but you’re on a business trip in Chicago. Think of the benefits of a news app pushing stories to you based on what is happening in Chicago. This can keep you both safe, and informed. It’s a win-win for everybody.

As a retailer, it gives you the opportunity to know when the peak times of your store are, so that you can adequately  staff, so that you can be delivering the best possible customer service. If you look at the geo data and know that between 11 and 1, you see a huge spike in customers, you can get all hands on deck and staff accordingly. Again, it’s a win-win for everybody.


What brands are doing it well?

As is always the case, there are some brands that are doing this well. Starbucks is one in particular. They are doing a fantastic job through their mobile app, of connecting with their customers in a meaningful, beneficial way. You can interact with the points you’ve earned, learn about new promotions, tell what song is playing in the store you’re in, or even get an alert when you’re near a store, so you can place your order and walk right in to get your coffee.

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Home Depot is another brand that is doing geofencing well. Their mobile app has geofencing so nailed down that they can tell you what aisle you need to be in. Let’s say you’re in the store, shopping for a hammer.  Their app will tell you if the hammer you want is in stock, what aisle you are currently in, and which aisle you need to be in to get that particular product. They’ve got it dialed in.  


Geofencing security issues

Any time you develop an app, it needs to be done with security and privacy in mind.

The issue with location based marketing is perception. You’ve got to be careful in your privacy policy.

State upfront that you're using some sort of location based technology, but then frame it in a way that assures the customer that the capabilities you're using are for their benefit, to enhance their shopping experience.

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If you can ease their concerns up front, you're less likely to have freaked out customers. Controlling your message is crucial.

 

What is the future of mobile?

As mobile traffic has spiked, it’s starting to overtake desktop traffic.

Mobile devices are becoming more and more transparent in everyday life. There are generations out there that still think of mobile devices as an additional thing to be carried, but mobile is becoming more and more an extension of who we are, more entrenched in our everyday lives.

We don’t need to carry maps, coupons, cd’s, a camera, and a laptop anymore. It’s all in our pockets.

It’s the de facto place we go to get information and engage the world, and the sooner that businesses figure this out, and recognize that mobile is here to stay, the sooner we will see even more top notch mobile experiences.

This post is based on an interview with Wesley Hall from Maass Media. To hear this episode, and many more like it, you can subscribe to Appy Hour.

If you don’t use iTunes, you can listen to every episode here:

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