location based marketing

How stationary retailers benefit from geomarketing and location-based services

In the era of corner shops, everything was still very simple. Retailers opened a shop in their neighbourhood, because they knew the people there and had good relations with them. But even then, the principle of geomarketing applied albeit unconsciously. After all, customers in wealthy residential areas usually require different products than those in poor neighbourhoods. Accordingly, retailers can adapt their offers to meet specific requirements.

The advantages of geomarketing

Today, these changes can be made in a much more targeted way. In the age of digitalisation and big data, there is an enormous amount of information available about the preferences of residents in different regions – down to individual districts and streets. Stationary retail shops can use this information to provide the appropriate offers in a targeted manner. This contributes to increased sales, as customers are more satisfied and return more frequently, and more new customers are attracted by word of mouth or targeted advertising measures. This principle applies both to existing shops and to the planning of new stores. Retail chains can use this to specifically seek out an optimal location for the new store based on purchasing power, number of children or most popular car brands for example.

Possible fields of application

Geomarketing can also be used for detailed applications. This can be used to determine market potential and perform target group-specific product planning, assortment and sales planning or sales territory planning and store network optimization. It also serves to evaluate individual locations according to infrastructure and competition, catchment area or product range. In addition to the analysis of individual retail stores, geomarketing also enables better customer care. This is carried out via customer structure analyses, direct marketing and control of local advertising activities as well as analytical CRM. The collected data and market indicators are integrated into customer management, data warehouse and business intelligence systems to determine the optimal customer approach and advertising planning.

Combination with location-based services

This approach can be perfectly complemented with location-based services. These are services that customers can use on a mobile device and provide them with appropriate offers based on their location. This is where stationary retailers can often score points in comparison to online shops. While purely Internet-based services can be used from around the world, but often only provide general offers – albeit individualized to the user – regardless of location, brick-and-mortar shops can adapt these to the respective location. Therefore, these shops can compete by making shopping a real experience. For example, customers can receive individual offers, coupons or additional information on products as soon as they are in or near the store. Online advertising limited to small local areas and certain times of day and night is also conceivable, targeting selected groups of buyers via Facebook, etc.

In all cases, however, the current data protection regulations must be observed and the user’s permission must be obtained. They are often willing to provide this permission if they receive a concrete advantage, such as special offers, individual services, personal support or additional products.

Use at trade fairs and events

Retailers or manufacturers should not only think of their own shops, but also of trade fairs and other events. Many visitors and interested parties are especially grateful for any help they can get navigating these events. For example, exhibitors can present themselves in the respective trade fair app via location-based services based on indoor navigation with the help of route descriptions, pictures, additional information and contact data and gain the attention of visitors using targeted marketing measures. After the event, the modes of use and visitor flows can be analysed in order to optimise the offers and the selected location for the next event. Geomarketing can also be used to select just the right local events. In this way, the solutions help implement investments in a more targeted and efficient manner, thus increasing the chances of success.

Last but not least, major local events such as city festivals offer a wide range of opportunities to attract exactly the right visitors and potential new customers into your own shop via online marketing.


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