How to Use Location-Based Marketing to Grow Your Business by Matt Bodnar - HTML preview

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Learn How To Use Cutting Edge Social Media Strategies

This special report will give you a top to bottom rundown of the world of


the hottest new mobile and social media marketing strategy "Location


Based Marketing" also known as "LBM" and help you understand how you


can use this to help your business succeed and why you need to start


using location based marketing today.


This special report will feature a breakdown of all the major topics


involved in location based marketing today.


The report will definite location based marketing, show you all the benefits


it offers for you and your business, and show how you to use it to crush


your competition.


This limited edition PDF report also features 2 free chapters from the


definitive guide to location based marketing available today. 00002.jpgAre you ready to unleash the power of location based marketing, grow


your sales, create deep relationships with your customers, and hammer


your competition? Everything you need to know about location based


marketing is available in this free report.


What is Location Based Marketing?
What is location based marketing?
Just another social media buzz word or


something that has the potential to change the way businesses interact


with their consumers?


00003.jpgHere is a working definition of location based marketing that I’ve created,


to help people understand and get more clarity about exactly what


location based marketing is.


Location Based Marketing: A social media marketing strategy focusing on
location-based mobile check-in services, like foursquare or Gowalla, to
bring deals, promotions, coupons, discounts, or specials to customers in
real time on their mobile devices.


At its core location based marketing stands at the intersection of social


media marketing and mobile marketing. Also known as “LBM” – location


based marketing is creating a way for businesses to literally bring value to


the palm of their customers hand.


Customers can “check-in” to at a store on their mobile device to unlock


specials and deals. This takes the often mushy concept of “social media”


and creates a way for businesses to quantify exactly how their social


media presence is generating revenue.


This is exactly why Location Based Marketing has so much potential and


has generated so much buzz lately on major social media sites – it is finally


a way for brick and mortar businesses to generate concrete revenue with


social media.


How Location Based Marketing Is Revolutionizing Social Media


Location based marketing is the hottest new trend in online advertising


and social media marketing. Location based marketing takes advantage


of GPS enabled “location based services” or LBS such as Foursquare,


Gowalla, Facebook Deals, and SCVNGR in order to allow customers to


access coupons, deals, and specials in real time on their mobile devices.


Location based marketing is changing the way that businesses both big


and small are engaging their customer base.


Also known as geomarketing or proximity marketing – location based


marketing let’s small businesses reach their customers in real time using


social media.


Small businesses have often wondered – how does social media really


help my business? It is very difficult to quantify exactly what benefit social


media marketing has on your bottom line.


It’s great to have twitter followers or fans on Facebook, but until you can


monetize that revenue stream – there is no tangible impact. Location based marketing turns these soft social media platforms into


concrete social distribution platforms that can be used to directly


increase your sales.


“Brick & Mortar” Social Media Marketing


Location based marketing takes social media from a mushy internet


marketing tool to something I like to call a "brick & mortar" social media




What do I mean by Brick & Mortar social media marketing? I think that the


next step for social media marketing and location based marketing


specifically is for more mainstream adoption by more traditional brick and


mortar or mom and pop type businesses.


Social media is currently the playing field for big national brands and tech


startups – but a space largely ignored by smaller businesses. Small


businesses in the restaurant and retail industry specifically will be the next


people to start really getting involved more actively in social media


marketing. 00004.jpgThe key to this transition is location based marketing. Why? Because


location based marketing is a way for those businesses who may have


previously had no interest in social media, twitter follows, or facebook (as


an aside – I think every small business that faces consumers should have a


facebook page) can now use location based services to drive customers


physically into their store and to track those visits with check-ins.


This is a very compelling value proposition for small restaurant and retail


locations – one that I think smart business owners will be jumping on


sooner rather than later


7 Reasons Your Small Business Needs Location Based Marketing


Location based marketing is an immensely powerful tool for small business


marketing. Here are 7 reasons why every small business should implement


an LBM campaign.


00005.jpg1. Customer acquisition location based marketing helps you reach out


to new customers. You can offer deals or rewards for first time check-ins


to encourage new visitors to your store. These customers can find your


deals either by using location based services like foursquare, or by


finding online deal listing like Gowalla city pages.


2. Reward loyal customers – location based marketing lets you reward


your most loyal customers. You can choose to use mayor specials to


reward your top customers with special goodies, or you can use repeat


check-ins to reward customers with something similar to the Smoothie


King punch card.


3. Monetize your social media presence – what are you going to do with


all those fans on your restaurant’s facebook page? Location based


marketing lets you drive those customers into your store by offering


them specials or promotions – and its measurable because you can


track check-ins and monitor all your lbm analytics.


4. Low Risk / High Reward – there is little to risk for setting up an LBM


campaign, spending 15 minutes to set up foursquare and get your


campaign going is your only real cost (other than the promotional


items). So what if no one checks in for a few days? Even 1 or 2 sales


extra sales would still make 15 minutes a worthwhile investment.


5. Free to use – foursquare and Gowalla are both free to use for small


businesses – there is no cost to set up your campaign. Do I really need


to say more?


6. Differentiate yourself from your competitors – be the first of your


competitors to get ahead of the trend. If you dominate


the location based marketing space before anyone else then you will be the go-to spot and your brand will be associated with location


based promotions in your customer’s mind.


7. Proven marketing methods at the end of the day, none of these


tactics are new or untested. Location based marketing takes the


proven and successful tactics of coupons, customers loyalty cards,


promotions, and discounts and moves them all onto a mobile platform


in the social media space.


What are you waiting for? Go set up your location based marketing


campaign today. There isn’t much to lose but it could really help your


business grow sales and outmaneuver the competition.


How Location Based Marketing Can Help Your Business Survive The Recession


The economy has been tough on small businesses across the board and in


the last few years, only businesses that have been able to stay lean and


keep their customers have survived.


Think about the fast casual restaurant segment – it has survived and


even grown during the recession by creating value for customers and has


a smaller more nimble business model than traditional casual dining.


00006.jpgLocation based marketing is an excellent customer acquisition tool that


can help your business survive these tough economic times.


There are a few key ways that location based marketing can let you thrive


even in a down economy.


With the economy in the dumps, customers are hunting for bargains and


looking for ways to save money.


Location based marketing deals are an excellent way to offer your


customers real value.


By giving your customers relevant deals and discounts, location based


marketing lets you turn economic downturns into an opportunity to


acquire customers.


You can also use location based marketing as a way to differentiate your


brand during a tough economy.


While your competitors are losing customers by the day, you can use LBM


strategies to build customer loyalty and reward your customers.


In tough economic times – keeping your core customers is an essential


part of surviving.


Location based marketing is the tool for rewarding loyal customers and


keeping them in the store.


The lifetime value of loyal customers, especially in a recession, is what


keeps many businesses afloat.


Location based marketing campaigns are also free to launch and cost


very little to run, making them a great tool to deploy for businesses that are looking for cost effective ways to grow their customer base during a




The Future of Location Based Marketing – What Drives User Adoption?


There is an interesting piece over at Wired about the future of location


based marketing: The Future of Geo-Location: Faith, or Science?


This article points out some of the doubts people have about the future of


location based marketing and the number of users currently on the major


LBM platforms.


The article does a great job of addressing the two major concerns people


have about user adoption of location based services.


The first major concern about location based services is that users will be


too lazy to check in.


Checking-in is an action, something active. People have to pull out their


mobile devices and actually click the check-in box. Unlike watching TV


which is entirely passive, checking-in requires an extra step.


This is often cited as a major stepping stone to mass adoption of location


based services and a reason why location based marketing can’t scale




However, the entire app universe is built around the fact that people


enjoy using their mobile phones for all sorts of activities from texting, to google maps, Zagat, etc – people use their mobile phones as a portal to


access information and take action – and location based services stand


at the nexus of this.


The Wired article also points out that activities like web browsing and even


something like video games are very active behaviors and yet those are


still things people spend tons of time doing both on their computers and


on their mobile devices.


People also already take time out of their day to clip coupons, use punch


cards, and take advantage of similar discounts or promotions – location


based marketing simply makes it even easier for people to access these


deals in the palms of their hand.


The second big concern about location based marketing is that users will


fear a loss of privacy when announcing their location to their friends and


other users on their location based service.


This is the major reason cited for the small number of users on location


based services right now and the fears people have about growth in the




The article makes an excellent point that starting with Facebook and now


many other services like Twitter or even Gmail – people are willing to give up their private information as long as they perceive that they get value


out of that exchange.


The key is to offer the customer something in exchange – show them that


giving up their location is worth the value of finding relevant and


interesting deals or specials in their area.


“People are also willing to give up lots of private information, or are
indifferent about it — witness the success of Facebook. So I don’t
think that’s going to be the big friction either.
I think location-based services that are integrated with other things
of value are the ones that will hugely resonate. So, you use Google
for lots of things and now Google tells you what’s around you
wherever you are.
You don’t have to do anything but launch a browser, which you do
1,345 times a day.
Facebook entices you to run their app in the background all the
time — why not? Smartphone manufacturers even sell their phones
now as social network delivery systems — and then say when you
connect with your friends (which you’ll do anyway) you can see where they are and, by the way, here’s a store with stuff on sale
which Facebook knows you like.
It will become natural and expected to be informed, personally,
about proximate things of interest.”


Wired does a great job of pointing out what I also think about the location


based services market – as with other social media – location based


marketing will become part of people’s daily experiences and something


that is natural and expected – people want relevant, timely, and


interesting information – and location based marketing can deliver it to




The Real Potential of Location Based Marketing


The key to unleashing the real potential of the location based services


market, turning location based marketing into an essential marketing tool


for small business, and growing the location based services user base is for


the major location based services to re-conceive what business they are


in and understand the true potential for location based marketing.


While things like badges and special rewards for exploring cities are


interesting distractions – the meat of location based services is in the value


they can offer consumers.


To drive users onto Foursquare and Gowalla – they need to realize that


nifty gadgets and cool features are not the end game. Give people




Give them a reason to log in and check-in at their local coffee shop. It’s


all well and good to be the mayor, but at the end of the day, as a


consumer, I want that extra dollar in my pocket. I want that free order


of French fries.


Promotional marketing and coupon marketing have been highly


successful marketing and sales tactics for a long time. These are tried and true marketing methods and ways to generate sales and build customer




Foursquare and Gowalla need to realize they are in the location based


marketing business – they are in the business of location based coupons,


location based promotions, and mobile marketing.


They don’t need to be focusing development on a cute and fun user
interface – the way to get real traction and bring customers onto their
platforms is to show customers that there is real value in using these


Facebook Deals coming to market shows that there are big players in the


market who understand the underlying dynamics. Facebook doesn’t


bother with badges or other such functionality - Facebook Deals is


designed specifically to leverage Facebook’s user base and deliver


relevant content and value to them. That is the future model of location


based marketing and the other players in the market such as Foursquare,


Gowalla, and SCVNGR need to refocus on demonstrating the value of


location based services to consumers.


Seven Applications Every Location Based Marketer Needs


Location based marketing is taking social media and transforming it from


a mushy concept to a real tool to drive revenue in your small business. In


order to take advantage of the huge opportunities location based


marketing provides, There are a few key apps that every small business


interested in location based marketing should keep in their marketing




While it is not necessary to use all of these apps, each one is helpful in its


own right and can help strengthen your LBM campaign in one way or


another. Here is a quick rundown of the basic apps that you need to


know (and use) to be successful with location based marketing.


00007.jpg1. Foursquare – This is a no brainer. Foursquare is the market leader in


location based services and one of the big names of LBM. Foursquare is free to use and set up for your business. Foursquare also has the largest


established user base of any mainstream location based service.


2. Gowalla – Another strong contender in the LBM space, Gowalla also


has a substantial user base and offers a “city pages” where you can


feature specials and deals for customers to browse online, a great way


to showcase your offers to new and perspective customers.


3. Facebook Facebook is involved directly in the LBM space with


Facebook Places, which allows you to set up a a location page for


your business. Facebook Deals is a new Facebook platform that lets


you offer specials and reward programs to customers. Facebook’s


Fanpage is also a great way to keep your fans updated about your


latest specials.


4. SCVNGR – SCVNGR is a smaller location based service that is up and


coming. With the help of some recent VC invesments and a big deal


with coca-cola, SCVNGR has definitely put itself on the map. Given the


lack of users, its hard to get as much traction, but keep an eye on this


service. 5. Geotoko - Geotoko is a third party LBM platform that allows you to


monitor your location based marketing campaign across multiple


locations and platforms. With an easy to use and sleek interface,


Geotoko is a great way to manage your LBM campaign in one place.


This service does cost money so keep that in mind.


6. Place Punch – Place Punch is similar to Geotoko and offers another


platform to monitor your LBM campaign from one place – the software


isn’t quite as sleek but its a little cheaper than Geotoko. Both services


offer a free trail so give them a shot.


7. Twitter - Twitter doesn’t have a specific location based component


that lets you offer deals to customers, but its such a powerful platform


for customer engagement and PR that it needs to be integrated into


any successful LBM campaign. You can use twitter to broadcast your


LBM campaigns to customers and generate buzz about your latest


check-in special.


How To Use Twitter For Location Based Marketing


00008.jpgTwitter is a very strong platform for location based marketing – while it


doesn’t fit into the category of traditional location based marketing


services like Foursquare or Gowalla – Twitter can be a vital tool and take


your LBM campaign to the next level.


Twitter can be used to create a follower list of customers who are


passionate about your brand and your business. This Twitter follower list


can be used as a “permission asset” of customers who want to see what


specials and deals you are offering.


Once you build up a significant twitter following you can market to those


customers using Twitter.


What can you do with Twitter to juice up your LBM campaign and make


some sales? Here are a few suggestions to consider for building your


Twitter base and using that to leverage your LBM campaign.


· Tweet about one-time specials and deals available through other
location based platforms
– send out a tweet to your followers and let


them know to come check-in and unlock your special.


· Use Twitter to get new followers onto your LBM platform – get followers


to sign up for Foursquare or Gowalla and come in to your store for


specials, discounts and deals, once they are on the platform – you can


offer them more specials in the future.


· Offer check-in specials exclusively for your Twitter followers – this is a


great way to reward your twitter followers and encourage more of your


customers to join twitter – this creates a virtuous cycle where you get


more followers on both twitter and your location based service of




· Give your customers a small bonus for becoming a follower on Twitter


10% off or a free beer will do – something simple but meaningful- this


creates a win-win situation for both you and your customer because


you are both providing each other with something of value. · Advertise in your store let customers know if they follow you on twitter


they can get access to free deals and specials that you will only post


on Twitter – this creates a great incentive to get your customers on the


platform, once you start offering them specials and deals then you can


drive concrete and measureable foot traffic into your venue using


location based services like Foursquare.


00009.jpgUse Twitter as part of your arsenal and you can unlock the real strength


of your LBM campaign. What are you waiting for? If you already have


Twitter followers, this is even easier as you can start to monetize your


follower base and use your followers to drive foot traffic


and ultimately sales into your business.


The Key To Restaurant Marketing – Where Do Location Based Services Fit?


Great graphic from the National Restaurant News article on Restaurant


Trends in 2011.


00010.jpg43.4% of the restaurants owners surveyed by the National Restaurant News


said Social Media Marketing was their top marketing priority. Another 31%


said in-store promotions were their top marketing priority.


Location based marketing stands at the intersection of both of social


media and in-store promotions. This means that location based marketing


dovetails perfectly with 74.4% of restaurant’s marketing strategies!


Location based marketing lets restaurants tap their social media presence


to drive concrete customer foot traffic into their store.


It also ties in with in-store promotions because customers physically need


to check-in, and they can access all sorts of in-store promotions like


discounts, coupons, free giveaways, or group deals.


The Next Level of “Location” – Digital Wallets


The next level of location based services could completely uproot how


businesses make sales to their customers in the future.


00011.jpgWhile you won’t hear many people talking about them yet – largely


because there are a lot of consumer behavioral patterns and security


issues that still need to get resolved (and I think they definitely will) – Digital


Wallets are the ultimate direction in which the mobile market is heading.


The ability to pay wirelessly and without a wallet is a huge convenience


for people.


On top of that, this type of technology could have a big impact for


location based services, similar to something like shopkick where you


check-in automatically.


The Wall Street Journal describes a digital wallet as :


"Meanwhile, wireless carriers are looking to turn phones into digital
wallets. AT&T, Verizon and T-Mobile USA formed a joint venture with
Discover Financial Services in November that will someday let
consumers wave their phones in front of a scanner to pay for
Coming next: Purchasing on mobile phones takes off. It can be
clunky, but shoppers will get used to it as smartphone penetration
increases. IE Market Research estimates cellphone purchases in the
U.S. will jump from $1.61 billion in 2009 to $6.74 billion in 2011."


The rise of digital wallets has two big impacts for location based




1. Check-ins a digital wallet solves the problem of consumers having to


physically check-in, which is often sited as one of the barriers to more


adoption of location based services.


2. Social Point of Sale – I talked about this in an earlier post, but the social


point of sale would benefit dramatically from a digital wallet.


Customers can automatically sync in when they walk into a store, unlocking all the benefits of a social point of sale and being able to


pay seamlessly.


This may seem far fetched but I think that we are moving towards


mobile integration like this with our location based services at the


forefront. This creates a compelling value proposition for both


customers and businesses at the end of the day.


Taking Location Based Marketing To The Next Level – Social Point of Sale


There is a great article on mashable about a concept of a “social point of


sale” – a new way to link location based marketing platforms directly with


a store’s Point of Sale (POS) software. This has the potential to unlock a


new layer of location based services and bring location based marketing


to the next level.


00012.jpgSimilar to the concept that Mark Zuckerberg had of adding a “social


layer” to every app or piece of software – this could take location based


marketing apps like Foursquare or Facebook Deals from tools for building


sales to a revolutionary new way of selling products.


Zachary Cohen explains this perfectly:


“If the restaurant was aware of my physical presence there, in real
time, the host would be able to see when I last visited, what I
ordered, and how much I spent. Did I tweet about it? Did I enjoy a
particular wine? Was the roast chicken undercooked?
Armed with this information, the restaurant could develop strategies
to make my current experience even greater and turn an
occasional customer into a loyal one — perhaps even a brand

They can discount me, up-sell me or offer me a value-add, but it will
be so targeted, so relevant and so personal that I’ll hardly be able
to refuse. Of course, it will take some time to establish what is
appropriate and what isn’t, but this opens up a whole new world for
strategists to discuss, test and develop into winning tactics.”


The opportunity to do this could redefine branding and marketing as we


know it – location based marketing and social distribution would merge


into a new customer experience that is completely customized – as soon


as the customer checks in with their location based service they access


their personal preferences with the store, restaurant, or brand – and the


brand can use that information to deliver real value to their customers. There are some very, very exciting opportunities with location based marketing – and this is only the beginning.