By identifying where customers and/or prospects are during the day, marketers can get a better idea of consumer interests and patterns that will give them a competitive advantage in the battle to increase customer loyalty.
I have recently been studying geo-marketing more and more as Goodwill of Greater Washington considers whether it would enhance our present marketing strategy. DC Goodwill is already developing another Goodwill first: an iPhone web app designed to allow donors to locate the nearest Goodwill retail store, donation center or donation bin through geo-coding, while also allowing the user to more easily communicate with us via our blogs and social media sites. The more value we can provide to our shoppers and the more convenient we can make the donation process, the more likely we are to build customer and donor loyalty. Geo-marketing might allow us to take this a step further.
Imagine the loyalty programs that can be created if we begin incentivizing donors for giving their used goods to Goodwill (and checking in when they do so) versus another charitable agency; or provide them with incentives for every 10 visits to our retail stores. How about cross promotional opportunities with partners to incentivize visits to each partner’s locations? Don’t get me wrong, while I view this burgeoning trend favorably, it does have its challenges. First of all, one doesn’t actually need to be in the location at the time they are checking in. They only need to be nearby. Second this is one way communication, so I wouldn't eliminate other forms of social media and/or market research in favor of geo-marketing exclusively.
Much like the web, this too will require some experimentation before a solid and measurable strategy evolves. However, it is still another means of engaging consumers and converting them into loyal customers and advocates, which in and of itself provides a tangible benefit to any business on the leading edge.
