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How to use location based marketing for your online store?

With the help of location based marketing, business users can do double duty, first promoting your brand and second helping the business owners to find potential customers. It is also for those customers who want to find the local businesses especially when they are on the go. According to the google, more than 40 percent of mobile web searches are for local businesses. Because of the geo targeting,location based marketing becoming more popular. This kind of marketing works by displaying ads and targeting messages when a customer is in a specific location and the potential customer gets near to your business. It provides big opportunity for businesses and benefits for the customers.


Location based marketing is relies on two things:

  • Smartphones that allows the users to access rich internet features.
  • GPRS technology that enable services to pinpoint the locations of mobile devices and small & local businesses.

Apple Ibeacon  marketing is typically associated with many online stores like brick and motors. When a potential customer is near to your business, this service presented with a targeted ad that encourages the customer to come into your store. With the explosion of mobile marketing over the last couple of years, we have seen an increasing interest in location based messages campaign. Mobile geo fencing is not a new technology as our society become increasingly mobile, developers and brands are realizing the added value that mobile geo-fencing or geo-targeting can bring to their SMS marketing campaign. These SMS campaign will allow brands to tailor SMS promotions to SMS subscribers’ real-time locations, increasing SMS marketing open rates and SMS redemption rates. For example an online store Locaid recently powered the technology behind a location aware SMS marketing campaign for Easton mall, in partnership with Alliance Data.

Passbeemedia also provides location based services to their subscribers. Many small businesses still trying to figure out location based marketing for their customers. The SMS campaigns encouraged SMS subscribers to use their store branded credit cards for a chance to win a shopping coupon at one of the participating retailers. SMS campaigns are really helpful for the online stores. There are some major SMS programs:

  1. 39% of SMS subscribers said that the location based mobile marketing promotions influenced their purchase decisions.
  2. 37% of SMS subscribers said that the SMS campaigns influenced them to visit a specific brand within the mall.
  3. 68% of SMS subscribers indicated that they would sign up for future location based mobile marketing promotions.
  4. The card holders that received the location aware mobile marketing messages spent on average 24% more in a shopping than the average card holders that did not received the location aware SMS promotions.

At first glance, using geo-fencing for an online business might seem like a futile effort. After all, there is no physical location for your potential customers to get close before they are promoted with an ad or SMS. Actually there is a lot of ways being in a certain location that can influence the potential customers’ tendencies to buy.