business & marketing

How Businesses Can Use Location-Tracking Apps to Better Target Customers

Sean
December 11th, 2018
4 MINUTE READ

Nearly 2.5 billion people own smartphones, and each one has the ability to track user location. This extensive database of user behavior becomes extremely valuable to companies looking to gain greater insight into their consumer-base. Companies can create ads that target consumers depending on where people travel and live.

Geolocation features can optimize the marketing process as businesses learn about their customers’ daily behavior patterns. Ads become more specific to certain customers and resonate better with a known audience.

We recommend using location-tracking features to benefit your app marketing efforts.

Location-Tracking Tools Can Map Users’ Daily Routes

Incorporating geo-tracking into your app offers a detailed look into where your consumers frequent. People normally have a daily routine where they repeat the same path to work or school. As such, businesses can take advantage of this knowledge and recognize the places and stores people pass.

For example, if you use the Starbucks app, the location feature alerts Starbucks to your whereabouts. As you pass a Starbucks, the app sends you a notification that you will receive a discount on coffee if you buy a cup today.

How Businesses Can Use Location-Tracking Apps to Better Target Customers

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The app recognizes your location and attempts to convince you to stop into the store and buy an item.

Geolocation draws a map of user activity and habits. The app can customize itself to respond to passing environments and act as a moving channel for advertisements. We suggest businesses invest in geo-tracking for their app—it acts as a valuable tool to connect with customers and incentivize buying behavior.

Geolocation Offers Insight Into User Socioeconomics

Location tracking easily pinpoints where people work and live. By identifying the residential area of users, businesses can analyze the financial well-being of an individual. As such, the ads targeted at a certain person can vary depending on that person’s neighborhood.

If a user lives in a wealthy area, then businesses will send that user ads for luxury items like high-end furniture or cars. The effectiveness of advertising increases when more knowledge is known about a person.

For example, say an app tracks a person who is constantly on a college campus. The app will assume that this person is a college student. As such, businesses won’t be sending this person messages about homeowner’s insurance or expensive vacations.

The advertising process becomes more streamlined as the audience for these efforts is narrowed. Businesses can save costs and increase their lead-conversion with more detailed knowledge of user behavior.

Location Technology Offers Immediate Ad Analysis

Location-tracking features also offer immediate feedback on advertising efforts. The real-time reaction provides confirmation whether an ad was effective or not. The Starbucks’ app user dismissed the coupon notification and continued walking. The incentive did not generate any new business and efforts should be reworked for this customer.

Pokémon Go, the location-mapping, gaming phenomenon, demonstrated the potential for “pop-up” marketing. The mobile game offers a “lure” feature, which attracts users to a certain location so they can collect more Pokémon.

Businesses began to recognize the selling potential of this feature as huge crowds were drawn to one location. Stores made themselves “lures,” and offered food or product deals for players.

How Businesses Can Use Location-Tracking Apps to Better Target Customers

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Sales increased as players would stop in for a refreshment while collecting the different Pokémon available.

Considering nearly 90% of Pokémon Go players meet others while playing, the game has an enormous capacity to draw large numbers of people. Location-tracking features provide the best method to reach crowds in one area. Further, businesses can quickly recognize which techniques increase their leads.

Incorporate Geolocation Features into Your App

Geolocation tools can increase your app’s success and streamline your marketing efforts. Location-based knowledge offers invaluable insight into how your consumers behave and shop. Many businesses want to understand their customers so they can best appeal to their needs.

We advise you to make sure your consumer understands that your app tracks their location. Ask permission and then utilize the location-tracking technology to better your consumer’s experience.

You can measure the effectiveness of your ads in real-time and adapt your offers depending on where a user lives and frequents. We suggest you use location-tracking tools to understand your customers’ decisions and transform the productivity of your marketing.

For information on how Codal can help with designing and developing your app, contact their mobile app development team here.

How Businesses Can Use Location-Tracking Apps to Better Target Customers
Sean McGowan
AUTHOR

Sean

Sean is a technical researcher & writer at Codal, authoring blog posts on topics ranging from UX design to the Internet of Things. Working alongside developers, designers, and marketers, Sean helps support the writing team to ensure Codal produces engaging web content of the highest quality. When not writing about the latest and greatest in digital design, Sean can be found baking, watching movies, or complaining about the shortcomings of his favorite Philadelphia sports teams.

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