How to Use Location-Based Marketing to Grow Your Business by Matt Bodnar - HTML preview

"LOCATION BASED MARKETING WILL REVOLUTIONIZE YOUR BUSINESS"

Throw out all of your old conceptions about coupons, building a brand, and customer loyalty. The idea of printing a buy one get one free in the local newspaper or having a punch card in your customer's wallet is utterly outdated. The internet - and more specifically mobile phone apps have redefined how small businesses can engage their customer base. A concept called "Location Based Marketing" or LBM is revolutionizing how big brands like McDonalds and Starbucks or even your neighborhood bagel shop engages their customers.

LBM uses applications such a Foursquare, Gowalla, and Facebook Places to reach their customers in real time. These services leverage the GPS and location based services within the growing mobile market in order to deliver deals and rewards to customers in real time, and to attract new customers. LBM stands at the intersection of social media, business, and online marketing.

This e-book is your toolkit and how-to guide for setting up a lean mean marketing machine for your small business. These low cost and often free LBM services can do wonders for your brand whether you are a one store operator or a multi-unit chain. The concepts are so simple and easy to apply that you can leverage them throughout your business to develop customer loyalty to and build your brand. LBM allows you to bring deals to customers on their mobile phones - instantly. What does this mean? You can create completely customizable deals, one time offers, coupons, or reward programs to help your business boom.

So what is this e-book going to show you? First I will give you a full rundown of what LBM services are available and what specific features and advantages each of these services offers. Second, I will show you how to go from nothing to a fully running LBM campaign in under thirty minutes! Third, I will show you how to promote your LBM marketing campaign and help use your current platform (include a how-to optimize your website + Facebook page) to drive your sales. I will give you a full run down of every LBM marketing strategy and how to implement it for your business. Fourth, I will show you how to use simple yet powerful analytics to measure performance and optimize your LBM campaigns. Lastly, I will go over what other resources are available and how you can become an LBM Guru yourself - to truly master the art of location based marketing.

Most small business owners think social media is mushy. It's great to have a Facebook fan page and "tweet" about your next special promotion, but how does that drive your sales? How can you measure the tangible impact of that campaign? LBM is the cornerstone that links traditional social media with tangible business results. Charlie O'Donnell, early stage venture capitalist and founder of ThisIsGoingToBeBig.com said:

Big players are getting into the LBM market. Major corporations like Starbucks, McDonalds, and Chipotle have recently implemented LBM campaigns with substantial and measureable success. Facebook Deals alone opens up access to nearly 600 million users. The location based services market has been called the "next twitter" - the conditions are set in place for businesses to truly monetize their existing social media base and to use social media as a real marketing tool to drive actual sales at their businesses.

The LBM is the hottest growing trend in marketing - as more and more customers begin to use mobile services like Foursquare and Facebook Deals to meet up with their friends and look for deals, these platforms gain critical mass and drive more and more business. Tech Crunch called these "business to consumer" services a trillion dollar opportunity.

Coupons and deals are the oldest direct response marketing tactic in the book. According to Business Insider, in 2009 "80% of Americans use[] coupons." Forrester Research reported that the number of in-store sales influenced by web and online research accounted for 42 percent of total retail sales in 2009, and that number is expected to grow to 53 percent by 2014. However, location based marketing gives you unique access to this huge market of both current and new customers.

The dynamics of advertising and promoting on a mobile platform can build your sales in four key ways. Each of these channels of LBM promotion requires a different strategy to execute. This e-book will explain the benefits of all the different LBM promotion strategies and how to balance different marketing strategies to maximize their impact. Constant testing and optimization, with the help of key analytics which will be discussed later, can help you find the perfect mix for total revenue optimization.

Real World Success Story: McDonald's McDonald's was able to increase their in-store foot traffic by 33% in one day with a Foursquare promotional campaign that cost less than $1000! Are you ready to unlock the power of LBM?

Reason 1: Drive New Customers To Your Business. LBM drives new customers to your business in three unique and independent ways. First, LBM allows you to automatically extend deals to any new or perspective customers as long as they have a mobile phone. This gives you the opportunity to start the relationship off on the right foot, and build brand loyalty with that customer early on.
Second, through proximity marketing. If someone is near your place of business, Foursquare will automatically alert them that there is a business in the neighborhood offering deals for first time check-ins. This can generate new traffic and show your advertisements to anyone on the LBM network, even if they weren't previously a customer.

Third, online deal databases provide new customers an easy way to access and review any of the deals you are offering. All you have to do is upload your deals to the LBM platforms and anyone can automatically view them in an online deal database. Gowalla also has a city pages feature that shows popular spots and highlights for major cities.

Reason 2: Drive Repeat Sales with Existing Customers. LBM drives repeat sales with existing customers using a variety of different tactics. By using specially crafted promotions, LBM provides incentives for existing customers to return more frequently and repeat their business. Promotions like the smoothie king punch card demonstrate how check-ins can boost your sales. Customers will want to come back more often as they receive rewards for frequent visits.

Reason 3: Reward Your Top Customers. LBM, on platforms like Foursquare, can be a great tool for rewarding your top customers. Using the "Mayor" tool, and the "Deputy Mayor" you can give your top customer free giveaways or special perks. This also serves to create friendly competition among your top customers over who will win the top perk. This builds community around your brand and serves as a natural conduit to drive business to your store.

Reason 4: Build Customer Loyalty. Providing rewards and benefits for repeat visitors as well as rewarding your top visiting customers is great for customer loyalty to your brand. This is a no brainer - customers will become more loyal to your brand the more they are given free rewards and perks for doing business with you.

Foursquare provides a great platform for these customers to seamlessly gain the advantages of being a loyal customer. No more hassle of coupons or special promotions in the newspaper, customers can access these benefits in their pocket simply by carrying around their mobile phone. This creates local advocates for your business and a cycle of positive word of mouth marketing, one of the most powerful ways to build your brand.

Location based marketing has a huge potential to help your business. It is a highly effective and cost efficient platform for generating revenue and building your customer loyalty. Are you ready to unlock the power of LBM?