Geolocation Usage in Modern Marketing

Constant technological mobility has changed the face of modern marketing. Although the ability to track a potential customer or client’s movements has been available for years, customizing the customer experience according to their IP address geolocation has become an industry secret that many companies have discovered and utilized. Understanding how companies can use IP geolocation to enhance their customer experience can help both the consumer and the business to achieve a mutually beneficial relationship.

What Information Can Companies Collect?

The idea of geolocation usage in marketing or advertising might not sit well with some consumers, who may be nervous or distrusting with the idea of feeling monitored. Individuals who learn more about information collection and privacy protections should be able to enjoy an elevated shopping experience without feeling uncomfortable. Companies can only collect data at an anonymous level. Some examples of data collection include general IP address geolocation, ISP hostname, area code and sometimes latitude and longitude. Actual names, email addresses, street address and phone numbers fall under protected private information, so businesses cannot gather this data for marketing and advertising purposes.

Benefits for the Customer

Since the onset of the use of location services in marketing and advertising, consumers have enjoyed a more customized shopping experience whether or not they realize it. The most prevalent example is targeted advertising that occurs while actively using the internet. Modern technology involves interacting with the customer on the move using mobile devices. For example, a customer can receive coupons, discounts or general advertisements while in the vicinity of a particular business using IP address geolocation on mobile. A business can also draw customers shopping at nearby stores into a neighboring location using time-sensitive incentives. Many businesses are able to drive customers into actual brick-and-mortar stores by targeting the location of consumers on the move. Additionally, advertising that is specific to a customer’s needs is less disruptive and more useful to the consumer.

Benefits for the Company

In order to stay competitive in a digitized world, enhancing the marketing process and the customer experience is crucial. Using IP address geolocation, businesses can tailor advertising to a customer’s specific needs without violating privacy. Another major benefit to businesses is the ability to collect data to predict future customer behavior. Data analysis allows businesses to develop focal groups or narrow down an intended customer base. The use of mobile devices in addition to IP geolocation gives companies the capability of reviewing the way crowds move and therefore predicting their movement in the future. Additionally, businesses can review marketing campaigns that were successes or failures and adjust future campaigns accordingly.

Typical modern consumers are never far away from their mobile devices. Through the use of IP address geolocation, businesses can capitalize on this moving customer base in order to enhance the shopping experience for customers. Customization of the advertising and marketing process through IP geolocation is a smart business strategy that uses more contextually relevant information to interact with a targeted customer base. A seamless and streamlined brand experience, whether the customer is shopping online from home or on the move, can be the key to an engaging and successful marketing campaign.