BITB -- Location Based Marketing

Location-based Marketing

Chris Book

@ChrisBook

Back in the Black: April 28 – 29, 2011

First things first

• Location-based = Mobile– Yes, there are applications on mobile devices

that are not LBS

– No, these are not mobile applications. They are applications on mobile devices

– Useful, fun to have. Not exclusively mobile

LBS Maturity

• The Players– Foursquare– Gowalla– Facebook Places– ChatterPlug

LBS Maturity

• Industry Growth– Foursquare has more than 7 million users

• In April 2010 – 1 million• 381 million check-ins in 2010• Foursquare has 51% of marketshare, while Facebook

places is estimated at 4%*

– 43% of LBS users check-in multiple times per day– 47% of companies will use LBS services for deals

in 2011

*Online Marketing Trends

Room for Growth

• There are currently 60 million smartphones in the United States. By the end of 2011, 82.8 million additional phones will be activated.

*Nielsen

Yet, There’s Concern

• Despite eMarketer finding that 74% of consumers leave with a positive impression of a company or brand after interacting via new media, a recent study by Applied Predictive Technologies estimated that the average revenue increase seen by businesses when implementing Foursquare or Facebook Places is only 2%.

http://www.fastcompany.com/1746838/facebook-places-foursquare-social-medias-tiny-2-impact-on-businesses

But Why?

• It’s centered around the check-in– Check-ins aren’t engaging– Check-ins offer little return for consumers and next

to nothing for businesses• Yes, there are some whimsical deals (yet 37% of users

have never received any type or reward*)• Keep in mind – we had deals before social was around.

That wasn’t the point. Social was put in place to create and build relationships, not give me a buck off coffee

• Online Marketing Trends

But Why?

• No business focus with existing tools– No consumer engagement

• Real-time isn’t a luxury, it’s expected• Deals aren’t the answer, engagement is

– No multi-location capabilities– Few analytics/tool integrations

• Only when a tools addresses business needs first, can efficiencies be passed onto consumers

Let’s Fix This

• The industry lacks a tool that is focused on providing businesses with the tools that they need to succeed in the LBS space. – Live, real-time– Multi-locational– Rich analytics– Loyalty/rewards platform

Paradigm Shift

• In order to capitalize on a location-based business tool, businesses must be willing to take undergo in a 4 part paradigm shift:– Real-time– Accountability– Customer service– Data reliance

Paradigm Shift

• Real time– The market demands real-time

• Each customer is carrying what is essentially a computer with them at all times

• They are never disconnected from their friends, contacts and tools. They expect the same from you

• A business must be able to respond, interact, and engage at ALL times

Paradigm Shift

• Accountability– The veil between the customers and

businesses is removed• Customer bases are more empowered than ever to

speak up and have their voices be heard

– If a business messes up, you don’t just offend a customer, you offend their entire network of friends and associates

– Fix it, and fix it now

Paradigm Shift

• Customer Service– Every customer you have is now an industry

critic – the equivalent of a New York Times restaurant reviewer

– The are no off days– Your employees as “Cast Members”

• Each employee must fully understand that they are a representative of your business AT ALL TIMES

Paradigm Shift

• Data Reliance– Because each customer is carrying around a

computer, you must approach your on-location business the way an e-commerce business approaches theirs

– Data can do what you can’t: Be Impartial

Application

• Product Testing

• Secret Shopping

• Travel Check-ins

• Organization Knowledge Transfer

• SEO Benefits

• Marketing Tool Integration

What’s This Mean for Agencies

• Position yourself as the go-to resource, making your agency indispensible– Informed Decisions– Know before your client – Emergency PR

• Recurring revenue– Strategy– Analytics

• Referring fees

What’s This Mean for Agencies

Thank YouChris Book

www.chatterplug.com

@chatterplug