Location-based marketing should be about more than just vouchers

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Facebook Deals in Times SquareWith the launch of Facebook Deals in the US in November and its imminent launch in the UK, the opportunities for brands to engage in location-based marketing are growing and set to grow more in 2011.

We’ve already looked at the ways in which marketers can use Facebook Places, and the ways in which location-based services can add value to both consumers and to marketers. But with the launch and growth of Facebook Deals, we will see a rapid growth in use of these tools by brands. And, with luck, a growth in marketing innovation - using location to do things and engage with people in ways that have not previously been possible.

But there is a danger that marketers may not move beyond the use of location to target vouchers, discounts and coupons. That would be a real shame.

Facebook Deals and Foursquare lend themselves to easily provide discounts based on a consumer’s location - a voucher for checking in, a discount for checking in a fixed number of times, a group discount if you check in with your friends. All of these are possible and would be of interest to brands. Taking a tactic that is already used offline and both moving it online and bringing in the location element. But this misses out on the real opportunities for brands to experiment with location-based marketing and to engage with consumers in new ways.

Successful brands will be experimenting sensibly with social media in 2011 as part of their social media strategy. And location-based marketing should be one area for innovation. Rather than just discounting or offering vouchers there we will see innovations in how brands are interacting with consumers. They may be allowing consumers to leave a ‘wish list’ in shops for friends - dropping their wedding list in a department store for others to find when they are there, or leaving their virtual birthday gift list in stores around town through location based services. They may allow customers to sort reviews and find services based not just on what is closest, but what others, people like them, or their friends, think of them. Or they may allow consumers to keep a record of when they have visited a location (maybe a gym or swimming pool) and the activities they did when they were there as part of a training diary.

Location-based tools offer a new way to engage with customers. And the successful brands will be innovating with these in 2011. Vouchers, discounts and coupons are just one thing they can be used for. But the best brands will do so much more.

This post is part of an informal series: Social Media in 2011.

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