Why location marketing is important

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5 reasons why Location Marketing is the key to your growth in 2020

What is Location Marketing

Location Marketing focuses specifically on the community around a local company. It can be described in a nutshell as the process in which the online presence of a physical location of a company is optimized.

Why has location based marketing grown so much lately?

If you think word of mouth is enough to drive traffic to your local business / to be found by new customers, then it’s time to revise your marketing approach. Did you know that last year, 97% of customers found their local businesses via the Internet?

This trend is due to a simple reason: an increase in users who rely on mobile phones, tablets, and their accompanying geo location technology. Location-based marketing has always existed (think of the Telephone Directory), but technology has now definitively encouraged customers to look for companies in new ways.

To stay ahead of your competition it is necessary to recognize the modern customer experience and to adjust yourself accordingly. Simply put: you must be able to find where customers are looking; online address books, review websites, social media, and any location-based platform.

Why should location marketing have priority in 2020?

Location-based marketing is becoming increasingly popular and affordable – and it works for any kind of business. The main reasons why you should consider using this are the following:

1. It helps with generating more sales

The goal of every marketing campaign should be to attract more customers. Location-based marketing can help by showing your business in the right place when it matters most: when they perform relevant local searches. Let’s say you run a cafe: when a customer types “coffee in my neighborhood”, that is when he or she is interested in buying your product. No matter which search engine he uses, he will immediately see a list of physical stores that sell coffee in his area. The higher you appear on this list, the more chances you will have to be chosen by the user.

This is especially evident at Google.

When performing a local search on Google, a user searching for “Cafe in my neighborhood” will only see three options – with a drop down menu where ‘more places’ contains more options.

According to a survey conducted by Moz, only 8% of customers click on “more” results, while 44% of customers make their choice based on the first three local results. This means that if you are not in these top 3 local listings, you may miss out on buyers .

2. Makes hyper-segmentation incredibly easy

Who else is more likely to visit your company than the people who are within walking distance of your products or service?

With Location Marketing you target future customers in an exceptionally specific, geographically defined area, sometimes just a few blocks or streets away, while they perform searches on their mobile device “in my neighborhood”.

For example, let’s say you need a drug and you go to the nearest pharmacy. However, when you arrive there, you discover that they no longer sell that medicine. What are you doing then? You take your mobile device and perform a “in my neighborhood” search for pharmacies near your location.

That is a Location Marketing example by potential customers in a nutshell.

3. It helps improve the customer experience.

John has to have his shoes repaired. He searches for “shoe repair in my neighborhood” and identifies Johnson’s Shoe Repair as the best choice from the top three local listings. The store has good reviews, nice photos and he is on its way home from work – it’s the perfect choice. The store information says that they close at 7 pm. John leaves work at 6 p.m. and arrives at the store at a quarter past 6, right on time , he thinks. But the store is closed. Johnson’s Shoe Repair has different opening hours during summer holidays, but this online information was not updated. John is not happy. He leaves a negative review and goes for the second best local result. John will shop at competitors, simply because one company has provided accurate information and the other company not.

Inaccurate or missing entries will make you miss out on new customers. Not only do they bring down your search rankings, they also lead to a frustrating experience for the customer. In the last Local Search Ranking Factors Survey, 66% of marketing experts indicated that Google My Business Listings and reviews are the elements that will have the most impact on the online presence of a local company.

If your listings are inaccurate, for example incorrect opening times or contact information, then this will lead to a greater chance of customer dissatisfaction, negative reviews, and the loss of future sales.

4. It creates new Facebook reviews in just minutes

Over the last few years, customers have been increasingly communicating with companies through social channels, and no social platform is more popular than Facebook. 74% of frequent Facebook users say they use Facebook, among others, to find more information about companies, and that of course includes reading reviews.

Would you like to get more Facebook reviews – without having to ask for it? With Location Marketing you can. Here’s how it works: a user “checks in” at a location through the use of geo tagging on Facebook, and 1-2 business days thereafter, Facebook will request him for a review. This automatic review request from Facebook is based on check-ins, so the entrepreneur doesn’t have to do anything!

But in order for your Facebook account to be able to use this function, you must be sure that your location targeting is accurate with correct and complete company information.

5. It helps in reaching more customers.

Today, location-based recommendations are part of every social platform.

In particular Facebook, which allows you to ask your friends to recommend locations in specific cities. For example, if you are planning a vacation, you might want to ask your friends for restaurant recommendations nearby. How? Click in the search bar “Ask for recommendations”, select your location and the type of company you are looking for. When a Facebook friend recommends a location in the comment, the algorithm will automatically tag the Facebook page of the relevant company and show it on the map. Well, that’s a good example of how location based marketing should be done.

But if the company does not have a Facebook page or a physical address that can be associated with it, it will not be displayed. So now you finally know why location marketing is important!

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