With the proliferation of smartphones, location-based marketing is the latest buzzed about topic. Recently, an article in the Wall Street Journal explained how companies with retail outlets such as restaurants, retail stores and other small businesses can use location-based social networks to increase foot traffic to their storefronts.
Location-based social networks, such as Facebook Places, foursquare, Gowalla, and Brightkite allow users to share their locations through their phones’ GPS and “check in.” These check-ins allow consumers to share with their friends and social networks what shops or restaurants they visit. This provides marketers with an opportunity to engage with these consumers in a more direct manner.
After a customer checks in at a store, their recent geo-location updates are accessible to the store manager including frequently visited stores based on their Mayor status as well as if customers posted any tips about what they like or don’t like in the store. For example a Bluebird Ice Cream patron recently posted, “Get the snicker doodle ice cream because it is damn tasty!” This provides businesses with instant insight into customers’ preferences.
Businesses can easily leverage these networks to help build awareness, increase store traffic, drive sales and connect with customers.
Here are four ways businesses can leverage location-based social networks:
1. Getting the word out there. Hyper-local marketing has never been so easy. Just letting people know that you are in the neighborhood can draw them to the store. For instance, a person standing on Broadway, a thriving a
rea in Seattle, can check into FourSquare to get a list of all the nearby restaurants and access information from their networks of friends, as well as special offers from the surrounding establishments.
2. Offer something special. Specials can entice customers into your business. For instance, Mediterranean Express on Broadway in Seattle lures customers by offering, “First 5 customers who check in before 11:45 a.m. will get a free soda with their meal.” Whereas Juicy Couture’s current offer entices customers to check in at the store and show the manager to receive a free sample of its Peace Love & Juicy Couture fragrance.
3. Build loyalty. The ability to build loyalty and attract repeat business is the key to successful geo-marketing campaigns. With these networks, companies can give customers a reason to keep coming back. Recently, PCC was offering a free cookie to shoppers when they check in three times. Consider these other giveaways:
4. Get consumer insights. Real-time data about users – such as gender, frequency of visits, time of day they check in, total number of unique visitors – provides invaluable insight into consumer behavior that marketers can leverage to tweak campaigns. For instance, if more men visit an electronic store between 7 to 10 p.m. then the store manager could consider offering services that would be of higher interest to men rather than women.
To get started, a business owner or marketing manager should first create a profile for the business on the network, or if a profile already exists in the database then they can claim it, and ensure it is complete and accurate. He or she can then encourage customers to check in online by placing prominent signs in the store, or at the cash register, as well as on Twitter and Facebook.
Once you get started, there are many possibilities. Don’t wait. Leverage location-based marketing to drive your business now!