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Beacon Technology: A Boon for Geo Targeted Marketing

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January 2015, and it’s time for every digital marketing organization to start brainstorming on what’s next. The industry saw new bursts of creativity and talent last year, and this year promises to be no less. While some clients will prefer to maintain status quo, there are those who will make bold moves into frontiers unexplored.

One such unexplored and high potential area is that of geo targeting marketing. The concept is extremely simple. Over the last few years, marketers have been using GPS solutions to determine customer locations. Based on all the data collected, they perform intensive data mining operations to find market segments based on client geography. Once this information is available, marketing gurus get to work to create marketing campaigns that best represent the product in each location. Going a step further, the location based information can be collected at real time so that the most effective marketing message reaches the customer at exactly the right time.

A simpler way to gain similar results in geo-targeted marketing is to use Beacon Technology. This technology uses the Bluetooth Light Energy (BLE) mechanism to allow communication to smart devices within close range vicinity. The benefits – absolutely low cost factor as compared to GPS solutions. Such technology is best used in indoor scenarios such as inside retail stores, malls or airports.

An example of how this technology can be put to good use is as follows:
A brick and mortar retail store decides to make their promotions available to their customers. The customers will need to download an application into their phone and keep their Bluetooth on. Now, let’s say the customer is in one of the store aisles looking for a great deal on a pair of shoes. The application will detect the customer’s physical presence and send out real time coupons that can be redeemed immediately on the current purchase. In theory, this scenario has all the elements of a perfectly executed geo targeted marketing strategy.

In practice, the technology needs to pick up more momentum amongst the masses. A research conducted by Swirl Research revealed the following results:
• 45% of consumers ignored alerts because they were not relevant
• 37% of consumers ignored alerts because they were not of high value
• 16% of consumers ignored alerts because they were irritating
The apt use of this technology for marketing is one of the most interesting challenges for digital and mobile marketers today. 2015 holds the promise for many innovative applications in this area. For this and other strategic digital marketing initiatives for your organization, do get in touch with us today.


Posted by Kirien on January 15th, 2015

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