Three ways location-based services can add value to consumers and marketers

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This week’s New Media Age contains a feature on location-based marketing looking at some case studies of where it has been used well and the opportunities for it as part of the marketing mix. We’ve written before about opportunities that location-based services offer to marketing. From using Foursquare as a small business to the many ways to use Facebook Places, location-based services offer many potentials for experimentation and new ways of communicating with and marketing too consumers.

As I comment in the NMA article, there is “a temptation to think that location-based marketing is the next big thing”. A temptation for marketers to put their efforts into location-based-marketing because it is new and because case studies are emerging of it being used in a way that really adds value to the business. But really we are entering a period of experimentation with these tools. Marketers should be using them strategically and trying them as part of their marketing or broader social mix.

Marketers need to be sensible in their use of location-based marketing. It’s important to think strategically and assess whether or not it can add value or have an impact. In the next year there’ll be more experimentation and more campaigns, some that work and some that fail.

This is an exciting time, there are many ways in which location-based marketing can be used but three clear ways where we should see experimentation are all areas where the services actually add real value to consumers.

1. Help me to filter information

This evening I was looking for a restaurant for dinner with a friend. One of the most important criteria was that the restaurant was near where we were when we decided to go and eat. Location was a significant variable in our choice. Or rather ‘near me right now’ was the filter we wanted to apply. Location-based-services allow consumers to apply a simple but effective filter to information they are searching for - especially when that information is reviews or advice. And it allows them to apply it instantly.

This is very powerful. It helps a consumer get straight to the information that is relevant, and provides a real use for reviews and advice not just as a planning tool but also to influence consumer behaviour in real-time. I like to think of it as there being reviews dropped on streets across the world that my phone lets me read. Secret messages that location-based-services unlock when I am near them and when they are relevant to me.

2. Help me to find people like me

Location-based-services not only know where I am, but also where other people are. Putting these together means that I can easily find people or other groups. And the power comes when you use this to help people connect if they have similar interests or concerns. Online communities are successful where they connect people with similar problems, questions, interests, issues or concerns. And they can be particularly valuable at getting people who don’t know each other to share and discuss - from people who want to talk about a broadband provider to those with a particular medical condition who want to talk to fellow sufferers even if they don’t know any personally.

Location-based-services can take this experience of connecting affinity groups and make it happen offline too. You can find if people with similar interests to you are nearby. Maybe you enjoy softball and want to find out where others are playing one Sunday morning, or maybe you just want to find other people like you. A highly successful iPhone app has done that for a niche market (the gay dating app Grindr) and similar behaviours can benefit many other groups.

3. Help me to organise events, parties and rallies

What’s the simplest way of knowing how many people are at a protest? You could count them all, or you could ask them all to register. But how about getting them all to check-in. This not only gives you a count of how many people have joined your event at a particular location but will give you access to lots more information about them and, perhaps critically, a route to contact them again after the event. Location-based-services, and particular the notion of checking-in, allows a number of existing processes to be both simplified and enhanced.

Could we use location-based-services to let a restaurant know we’ve arrived and are waiting in the bar for our table? Could we use them to gain access to parties, or can we use them as a way to organise and direct political protests or rallies. Location-based-services provide a number of potential organisational uses that need to be explored and experimented with.

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3 Comments

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