How Could You Use Geolocation Technologies to Foster Stronger Loyalty in Your Customers?

2 Mins read

In recent years, a number of technological innovations have surfaced to help companies locate their customers. Businesses can obtain geographical data about their consumers through the collection of data from purchases made both online and in-person, which they can subsequently employ in location analytics.

The most effective location marketing strategy is geolocation which uses mobile technologies to encourage local sales. Geolocation can aid companies in boosting the effectiveness of their marketing initiatives and maximising their revenues. It can be used to develop better customer loyalty – but how? We’re going to outline how you can use geolocation to foster stronger loyalty in your customers.

Why geolocation is effective

Most customer loyalty programmes tend to aim for as many targets as they can feasibly reach. Geolocation is not a substitute for or a rival to these typical customer loyalty marketing strategies. Rather, geolocation offers an opportunity to improve customer profile information and establish a more accurate method of targeting. You can offer discount offers and even loyalty rewards to customers who are nearby your store’s location – the possibilities are endless. There are many ways to use geolocation technologies to attract customers and build loyalty – we’ll break them down.

Precise targeting

Businesses can reach potential customers when they are nearby a store using geolocation technologies. The mobile app can recognise when a user is within a mile of a store and send personalised messages. A location-aware message can be specifically targeted to only those users who are close to the store, as opposed to notifying those who aren’t nearby.

If consumers find out that simply visiting a store will result in them receiving an offer or discount, this might perpetuate the incentives loop, and ultimately increase the number of customers coming to your store. This can allow you to form relationships with customers and build loyalty. Your ability to communicate with someone changes when you put your loyalty programme on their phone. Doing so not only gives you an extremely valuable way to remind customers about your business, but it may also significantly alter their purchasing decisions.

Build trust

Since many phones do not automatically disclose a user’s location, you must actively urge consumers to enable location tracking in your app. This is done by building trust and loyalty. Once you’ve gained a trust that pushes customers to share their location with you, immediately you know that loyalty and bond have been strengthened, allowing you to capitalise and expand on that loyalty.

Understand your customers more

You may gain insightful information regarding how users interact with mobile devices and their context using geolocation, which can help you better understand the behaviour and habits of your customers. By better anticipating their demands, you improve brand loyalty and dramatically enhance the consumer experience in doing so.

Customers who choose to participate in loyalty programmes typically spend more than customers who do not. Using location-related data and geolocation technologies, businesses and advertisers can enhance their marketing efforts and give their customers a more tailored experience.

And there you have it – all the essentials you need to know about using geolocation technology to foster and nurture stronger loyalty with your customers.

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About author
Ryan Kh is a big data and analytic expert, marketing digital products on Amazon's Envato. He is not just passionate about latest buzz and tech stuff but in fact he's totally into it. Follow Ryan’s daily posts on Catalyst For Business.
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