Everything You Should Know About Location-based Marketing Technologies

Information is clouding adult some-more than ever and business are increasingly behaving shopping-related activities on a go. While online retailers are definitively capitalizing on this drift, section trebuchet stores aren’t too distant behind. Physical store owners are also apropos skilful in complicated record to win behind sales that they have been losing to a hands of e-Commerce.

Apart from regulating normal selling plan online and offline, offline retailers are also capitalizing on GPS-enabled technologies like beacon, geo-targeting, and geo-fencing that gives business what they want, when and where they wish it.

Through this article, we will strew some light on what these technologies are, a hurdles compared with them, and how they will grow with time to assistance retailers precedence them better.

Targeting business Based On Location Timing

Advanced location-based mobile selling technologies concede retailers to strech deeper into their customers’ psychology to acquire their faithfulness by attack that honeyed spot. So distant a adoption rate among retailers has been light though with a arise of m-Commerce in new times, a outrageous swell is approaching in their acceptance.

Let’s start by bargain what these technologies are and how they work.

1. Geo-targeting

Geo-targeting allows businesses to send tailored summary to business of a specific geographic area. It is essential to cruise people from opposite locations to have opposite interests and needs. Online and vast offline retailers with outlets in several locations are already leveraging this record for better patron targeting.


Small section and trebuchet retailers can benefit on this by regulating it to know a internal demographics better. For instance, a sportswear store in Manchester can tailor a offers and online promotions improved by initial meaningful where a infancy of United and City fans live.

2. Geo-fencing

Using this technology, offline retailers can set a practical fringe around their stores, so that whenever opt-in business (those who have commissioned store’s app) enter that area, this triggers a summary on their mobile inclination about a day’s offer and other applicable information.


For example, as we are about to travel into your unchanging coffee shop, we accept a good morning summary on your smartphone with special offer on a sold break on offer that day. As a customer, we competence opt for that break due to being sensitive about it, even when we had not primarily designed to do so.

3. Beacon

The many new entrant in this list, guide record was introduced by Apple in 2013 with a recover of iBeacon. Google also launched Eddystone beacons in mid-2015 for Android and other mobile platforms. Beacons are Bluetooth low appetite inclination that retailers can implement in their stores to aim business with high accuracy, in specific micro-locations: aisle by aisle, store opening and exit.


Beacons work with specific apps commissioned on a customers’ smartphone, inscription or smartwatch, and trigger specific messages or actions as they travel by a sold micro-location in a store. For instance, walking by a sold product will trigger a pull presentation about any offer on that product, or as a patron walks out of a store, remuneration is automatically finished by a pre-selected remuneration channel, and so on.

These modernized technologies are positively holding mobile selling to a whole new level. By stealing attrition from patron interaction, they are permitting store owners to yield business a highly personalized selling experience.

We have seen an example, nonetheless quite melodramatic chronicle of this in Steven Spielberg’s Minority Report from 2002. In a movie, this happens by retinal prove rather than marker around an app on your smartphone.


The Downsides

Despite a allure of a idea, along with this event comes a handful of poignant challenges.

Privacy Concerns

These technologies offer seamless communication and preference to customers. But it is finished at a responsibility of a customer’s privacy. A record that gets activated formed on a customer’s proximity, and carrying that information stored in a retailers’ analytics focus competence concede store owners to further aim them with this data, for separate matters.


Taking a instance of a coffee emporium scenario, if a patron is usually walking past a store in a rush instead of entering it, receiving a presentation about a coffee shop’s offer can means annoyance. Of course, it can be prevented by branch off a app, though afterwards creation a patron to do something regularly usually causes serve annoyance.

Lack of Data

These technologies have been around for a good while now though they are still in a rather nascent stage. There are still no well-defined patterns for how accurately business are behaving towards these in-store digital interactions. So to some retailers, investing on them competence seem like a play during this stage.

Battery Drainage

Beacon is built on low appetite Bluetooth technology. Enhancements it has left by over a past integrate of years have also cut down a battery expenditure emanate significantly. But on a ground, given spending a integrate of hours in supermarkets is normal function for customers, they competence need to deal with some battery drainage if they wish to keep their Bluetooth on for that duration as well.

Native App Requirement

Another vital plea with these mobile selling technologies is that they require business to implement specific apps to correlate with them. This competence be mor possibly for large retailers like Walmart, Sears and Target given smaller retailers competence use them to rivet usually their many constant of customers.

What does The destiny hold?

Despite these challenges, a destiny of these technologies looks hopeful. After all, zero is some-more fascinating for business than meaningful about engaging offers but even carrying to hunt for them.

In fact, a study pronounced that about 70% people find location-based pull notifications to be useful. These technologies also boost app use about dual times, that hence gives retailers some-more time to engage their customers.

Several other studies also advise that in entrance times, these technologies will be widely accepted. According to MediaPost, in 2015, 46% US retailers used guide record (up from 15% in 2014). And about 71% of them were means to know customers’ shopping patterns.

Business Insider has also estimated that in 2016 guide formed technologies will expostulate about $44 billion value of sales for large retailers in a US alone, 10 times aloft than in 2015.

Apart from these numbers, a flourishing trend of a internet of things (IoT) and a thought of tool vocalization to gadgets will also work in preference of these plcae formed selling technologies (since essentially, that’s accurately what they do).


So we have determined that beacon, geo-targeting and geo-fencing have substantial long-term intensity and will benefit critical expansion in times to come (especially in some-more mobile-oriented countries). But on a other hand, a hurdles compared with them also clearly prove that they need serve enhancements for easier implementation, some-more accurate targeting, and improved patron experience.

How prolonged they will take to go mainstream totally depends on how fast these enhancements take place. However, a critical thing for retailers during this theatre is to start adopting and regulating these plcae formed selling techniques and building on them as a need arises in a market.

What’s your take on a function of plcae formed marketing? Share with us.

Editor’s note: This post is created by Manish Bhalla for Hongkiat.com. Manish is a owner and CEO of FATbit Technologies, a web group that builds cutting-edge ecommerce solutions for startups. Manish counsels businesses on technology, online selling plan and assistance startups delineate a right plan for their particular needs.

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