5 Ways Location Based Services Will Prove to Be a Boon for businesses
Mobile phones are undoubtedly one of the most remarkable inventions ever. The evolution of mobile phones from mere devices of communication to a multi-purpose device has proved to be a great boon, especially for businesses. Businesses have been leveraging the features offered by mobile phones such as user location tracking to market their products or services to a relevant audience. In fact, location based services (LBS) have already started emerging as one of the most vital aspects of mobile marketing for B2B companies. For those of us who are unclear about how location based services work, it uses real-time geo-data from a mobile device or smartphone to provide information, entertainment or security. Though location based services were initially used only by B2C companies, B2B companies are slowly waking up to the innumerable opportunities that this technology can offer them. Location based services enable marketers to gain a better idea about the group of customers that are more likely to favor a particular product or service. The only challenge here is to gain customers’ permission from customers to provide more personalized offerings to them. Here are some of the key reasons how companies and marketers can benefit from location based services:
Building networks and partnerships
Using location based services enables two or more companies to enter into a mutually benefiting relationship through tie-ups. By forming a network of companies that can support and promote each other, the success of one company can prove beneficial to all the others. Such efforts also open up several avenues and opportunities for companies to flourish and increase their profits.
Rewards and discounts
Rewards and discounts act as great baits for attracting potential customers to the company’s products and services. Once businesses identify their customers’ behavior pattern by using location based services, they can be targeted by offering rewards and discounts for the services that are used by them the most. For example, if a customer regularly books flight tickets, companies can offer special discounts during a particular season. This would act as an incentive for customers to frequently use the company’s services.
Building social connection
After clearly understanding the wants and needs of the target customers, companies can go ahead and link their location based services to a mobile social network, which would enable users to share details about the company with their friends and other contacts. Companies can greatly benefit from this as it helps build their user database and increases publicity for the brand without having to put in any extra effort.
It is vital for companies to not only understand customer’s behavior with respect to their products and services but also understanding the users’ level of interaction with the competition. This is essential as it will help companies position their offering differently and offer something extra to the customers when compared to the competitors. By using location based services, companies can keep constant tabs on their customer’s action towards various offerings available to them.
Events and tradeshows
Events and trade shows are useful platforms for businesses to showcase their products and services. Organizing an event on a subject of customer interest could attract more users to your services. This would require a considerable amount of effort on the company’s part, both in organizing and financial terms, but if this effort takes off well, it could prove to be highly useful in gaining more customers. Tapping the right companies for the event could also pave way for many new sponsors for future events.
For a visual explanation of how location based services work, check out this relevant video on YouTube:
To know about the applications and trends in location based services