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

 

tool.

 

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

 

recession.

 

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

 

effectively.

 

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

 

industry.

 

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

 

them.

 

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

 

value.

 

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

 

loyalty.

 

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
platforms.

 

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

 

repertoire.

 

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

 

choice.

 

· 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
purchases.
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

 

marketing.

 

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
evangelist.

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.