When you spend some time dealing with marketing you get used to the idea that things change rapidly. This is one line of business where something that was popular a week ago is now obsolete. And something that was inconceivable a couple of years ago is now the norm. And, as it turns out, location data is pretty much that. More and more marketers are turning to location data as it provides better results and more marketing possibilities. But, how big is location data and what do marketers get out of it? Well, let’s take a look.
How big is location data
To get an idea of why marketers are turning to location data let’s take a look at some numbers. It is estimated that companies will generate around $26.5 billion due to location data marketing in the U.S. in 2020. If that sounds like a lot, consider that the estimate is $38.7 billion in 2022. So, if there is one thing we can say for sure it’s that location data is becoming larger and larger in marketing. And, that you’d be smart to start using it as soon as possible.
Location data marketing
But, in order to do that, you first need to have an idea of what location data marketing is. Well, to put it plain and simple, location data marketing is when companies gather data about where their potential customers are. People volunteer to share their location data, and companies use that data to better their service.
Now, what marketing companies for movers do is to take that data and organize their marketing around it. Thereby focusing their marketing efforts on people that can actually benefit from it. Think of it as an efficient way to narrow down your marketing to a customer base to who are most likely to use your service and/or product.
Why did location data become so big?
One thing that marketing companies didn’t see coming is the fact that people are willing to give their location. While this technology was available for some time, it wasn’t until smartphones became part of our everyday lives that location data was feasible. If you asked someone 20 years ago whether people would be willing to share their location, they would probably say no. But, millennials are willing to share a surprising amount of personal info, which makes marketing to millennials a whole lot easier.
Why marketers are turning to location data
So, now we know what location data marketing is and how big it is. But, we still don’t have a clear idea of why marketers are turning to location data. Well, there are multiple reasons why you need to invest in location data in order to have a successful marketing strategy.
Better conversion rates
One of the biggest problems you have to face in marketing is conversion rates. Even if you do your homework and figure out which is your target demographic, you will have a hard time marketing to them. And, once you do, only a small percentage of your marketing effort will turn into actual paying customers. Sounds bad, right? Well, location data changes that. By knowing who your target demographic is, you can proceed to find those that are close enough to you to hire your services. This effectively means that you are marketing to people who have the highest incentive to work with you, which is the basis for all successful email campaigns.
Knowing what customers want
Once you start marketing towards a proper demographic, you can start figuring out what your customers actually want. The odds you having the right product/service and marketing it in the best possible way right off the bat are minimal. Remember that developing a proper marketing strategy takes time, experimentation and website marketing analysis. All of which are made easier with location data. By communicating with your local customer base, you can figure out which marketing strategy works. Then you’ll be able to alter your business model to fit it. Furthermore, you’ll have a much easier time monitoring the impact of any changes you implement, both in marketing and in business.
Location data is becoming mainstream
Another thing to keep in mind is that location data is becoming mainstream. Customers have grown to expect that companies will know what they want and when they want it. So, it is becoming more and more important to predict customer needs and to offer your services even before customers start looking for them. And, all of this is only possible by monitoring behavior data. Now, it is only the large companies that monitor full behavior data, since it can be quite complicated to properly filter. But, more and more small companies are investing in location data. So, if you want to stay ahead of the curve, you better start looking into it ASAP.
Who should start using location data now
Even though location data is useful, not all companies will benefit from it right of the bat. If the company you are marketing is providing online services to a worldwide customer base, there is not much use out of knowing where your customers are. But, if you are providing services that deal with logistics or transport, location data is what you need. Every transportation company, be it moving, taxi or shipping, should start using location data in order to better their marketing and provide better services. Just like, local business citations, you want as many local people as possible to know about you.
Furthermore, if you are running a local store, you’d be smart to invest in marketing based on location data. Know that it is the most cost-effective way to market your services to the local target customer base.