AWARENESS AND ACCEPTANCE
Do you want to turn your ‘location services’ on?! Do you allow application XYZ to access your location while you use and don’t use the app? If you have a smart phone (iPhone in particular!) I can almost certainly guarantee that you’ve come across that same message popping up on your phone from time to time! Annoying and intrusive as it may seem geolocation actually plays a vital and advantageous role in mobile marketing (watch the video below for an awesome summary!)
THE IMPORTANCE OF PERSONALISATION
Kaplan (2012) defines mobile marketing as any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device.
The key word here being ‘personal’. Marketers must understand the importance of personalising mobile marketing content with the end user and their specific mobile device. This is one instance in which geolocation comes in particularly handy! We all know how mobile phones have become an extremely important part of our day to day lives, so important that some millennials expressed that they want to be buried with a mobile phone, just in case they’re not dead!
Due to the drastic increase in mobile phone adoption and usage over the years (80 million users worldwide in 1995 to a massive 5.2 billion in 2014) this jump has resulted in the cumulative collection of critically important big data. Data specifically regarding behavioural and geographic content that helps marketers generate and tailor personalised information to key consumers.
RIGHT INFORMATION, RIGHT CUSTOMER, RIGHT TIME
Geolocation marketing is all about getting the right information to and from the right consumers to gain a better understanding of their behaviour without overly invading their privacy. The main benefit geolocation marketing brings is delivering personalised messages, offers, discounts and benefits to the right target audience to increase customer satisfaction and customer engagement. Price & Arnould (1999) tell us that customers who install apps and ‘check-in’ using those apps are extremely likely to display a strong form of trust towards that brand, thereby increasing their willingness to enter into a commercial friendship with that brand.
Research shows that a majority of consumers are willing to allow location tracking if they benefit or perceive themselves to benefit from it. It is stated that 77% of respondents indicated they would approve location tracking on their phones as long as they received enough value in return (which is the primary goal of marketers today, to provide us as consumers with “extra value”).
COOL TRICK OF THE TRADE
The cool thing with geolocation is it places business ads on customer’s phones who are online and within a business’s proximity. I’ve experienced it numerous times as I’ve walked past a specific Mr. Burger truck at federation square after work to only later realise an ad pop up on my instagram feed promoting Mr. Burger during my train ride home, that’s one way to make me hungry…
Over the years we have seen the successful application of geolocation marketing and the ‘check-in’ function through brands such as Nike+ and my personal favourite Hungry Jacks (Shake & Win)!!
Nike+ utilises geo-marketing by announcing their consumer’s successful runs and fitness challenges throughout various social media platforms. Nike+ has successfully formed an online community in which its consumers challenge themselves, challenge others and ultimately share fitness achievements with their Nike+ community peers. This enhances customer engagement overall and helps form stronger relationships. The Nike+ community receives augmented benefits through the consistent tracking of their athletic performances while simultaneously providing marketers with rich and personalised information helping them maximise the full effects of geolocation marketing. All in all, Nike marketers gained a deeper insight into their own and potential customers allowing them to cater more tailored and personalised marketing content.
While, Hungry Jacks Shake & Win remained on the other side of the health/fitness spectrum. The campaign claimed “Everyone’s a winner with the Hungry Jack’s App”. Hungry Jack’s utilised geolocation marketing through motivating their consumers to check-in at a local Hungry Jack’s store to win a food prize (the ‘check-in’ is then posted onto the consumers Facebook wall to be seen and target a larger group of audience – their friends and family generating greater brand awareness and attractiveness). The app also provides information on surrounding Hungry Jack’s stores based upon your current location providing an accurate and direct route to your closest store. The mobile marketing campaign proved successful with the app reaching 265,000 downloads and becoming Australia’s most downloaded free app within 18 hours of launch.
What do you think about geolocation? Creative or down right creepy?
Can you list any other examples that utilise geolocation mobile marketing?
Till next time, Adios!
Price, L. L., & Arnould, E. J. (1999). Commercial Friendships: Service Provider–Client Relationships in Context. Journal of Marketing, 63(4), 38-56.