Location Based Services in Marketing
Location Based Services (LBS) stands for location-based services that the user accesses on their mobile device. Location Based Services allow users to see information such as nearby restaurants or attractions. This information is typically provided by using the IP address or GPS data from the mobile phone.
The current location of each person can be determined via their mobile phone. Through the use of GPS, the user may even reveal their location themselves. Location Based Services use these location details, for example, for hotel guides or tracking mail delivery routes. For marketing purposes, this information can also be used more strategically – “Craving a cappuccino? Turn right in 100 meters.”
Reactive Location Based Services
There is a distinction between reactive and proactive Location Based Services.
Reactive Location Based Services refer to information that is requested by the mobile device user themselves. For example, while on vacation, you can find out where to eat nearby, call a taxi using an app, or search for a butcher in the area. The prerequisite is that we allow the provider, via our smartphone settings, to provide the desired information.
Proactive Location Based Services
Proactive Location Based Services are those where information is automatically sent to the user without any request. These include unsolicited offers such as discounts from stores located near the smartphone user. This is also referred to as Geofencing. For example, when you enter a drugstore, you may receive discount codes and information about current offers on your smartphone, provided location services are enabled. These actions are often carried out through apps. The geographic area can be defined by the company.
Location-based services marketing is used for customer retention and attracting new customers for retailers or store chains. Of course, you may only send proactive Location Based Services, or push notifications, with the user’s prior consent. You must comply with GDPR regulations, or you risk heavy fines. To avoid making any unauthorized moves, it is advisable to consult experts in advance.
Benefits of Location Based Services
Location Based Services offer various features, such as navigation, security through location tracking in emergency calls, or advertising. For marketing, Location Based Services are very interesting. These services allow you to place your advertising more targeted and relevant with a geographical reference. This way, you avoid wasteful ad spending and reduce your advertising costs.
Your Contact for Location Based Services
To discuss how to effectively use Location Based Services in marketing, it is best to speak with our online specialist Tanja Hensler (hensler@trebbau.com, Tel.: 0221/37646 – 330).