Location Based Marketing: what's in for me?

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Location-based marketing uses location data to provide relevant ads and offers to consumers. It has evolved from early proximity-based models driven by technology to new approaches driven by consumer apps and social networks. Current approaches emphasize relevance, relationships, engagement and incentives to check in at locations. The value is moving beyond just location to tagging various objects and content to drive highly relevant ads. Privacy and ensuring benefits for both businesses and users will be important as location-based services continue to grow.

Location Based Marketing, what’s in for me Powerdemo on Digital Marketing First October 28th 2010, Brussels, Tour & Taxi LBi 1

It’s not traditional media that are dead (although some of them smell rather funny). It’s unwanted, irrelevant interruptions and stupidity that we are fed up with. By the way, who came up with that stupid concept of “Display Advertising”? Isn’t all advertising (except radio) display?

Relevant Advertising Search Display versus Classifieds Irrelevant Advertising DM

Location Based Services (relevant now and here) CRM (relevant for who I am) any kind of (creative) format Peer-Pressure and Peer-Guidance (because I trust my social network more than I trust brands) Brands as Friends (because you tell me stories and provide me with real value) RELEVANCE MARKETING When? Now! What? Search! Apps! Who? Me! Where? Here! It’s about building respectful relationships with customers, based on relevant communication, providing value for both sides, without annoyance or intrusion. And it is finally possible today.

The start ... technology-driven LBS ,[object Object]

Real Time Statistics => adaptations,[object Object]

Offers that matched their profiles,[object Object]

Walk in our outlet on the 2nd floor for offers and surprises right now

Bluetooth activation from 20 to 150% increase

Since opening its first location in 1971 the company has grown into one of the world's leading speciality food retailers and a brand recognised the world over. With 94% of all Facebook users either a Starbucks fan or are friends with one, 7 million active users of its mobile payment system, and financial benefits that reflect this, it is now considered a digital leader. However, it hash;t always been the case. In 2008 it faced real challenges with declining sales and a 50% drop in share price over two years. Starbucks’ recipe for success in Digital Transformation has been equal parts technology-savvy and committed leadership. Today, Starbucks continues to leverage these strengths to create value for customers and shareholders alike through digital. This paper describes, at a high level, what and how Starbucks has realised its Digital Advantage.

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Location Based Marketing: what's in for me?

1. Location Based Marketing, what’s in for me Powerdemo on Digital Marketing First October 28th 2010, Brussels, Tour & Taxi LBi 1

2. It’s all about relevance

3. It’s not traditional media that are dead (although some of them smell rather funny). It’s unwanted, irrelevant interruptions and stupidity that we are fed up with. By the way, who came up with that stupid concept of “Display Advertising”? Isn’t all advertising (except radio) display?

4. Relevant Advertising Search Display versus Classifieds Irrelevant Advertising DM

5. EXTREMELY irrelevant

6. EXTREMELY relevant

7. Location Based Services (relevant now and here) CRM (relevant for who I am) any kind of (creative) format Peer-Pressure and Peer-Guidance (because I trust my social network more than I trust brands) Brands as Friends (because you tell me stories and provide me with real value) RELEVANCE MARKETING When? Now! What? Search! Apps! Who? Me! Where? Here! It’s about building respectful relationships with customers, based on relevant communication, providing value for both sides, without annoyance or intrusion. And it is finally possible today.

8. Types of Location Marketing

10. Machine-driven

11. Centralized models

12. Top-down

13. Traditional phone experience

14. “Campaign”

15.

16. 2000 attendees

17. How to interact with attendees?

18. How to manage?

19. Fast and efficient

20. Welcome messages

21. Timed announcements

22. Departure messages

23. 4 interactive zones

24. Targeted announcements

25.

26. 20 hangout locations Bangalore

27. Telecom provider

28. Segmentation of customers:

29. Lower End

30. Mid Segment

31. High End

32. Relevant communication to each of them

33.

34. Walk in our outlet on the 2nd floor for offers and surprises right now

35. Bluetooth activation from 20 to 150% increase

36. 45% increase in footfall with Bluetooth turned on

37. +50.000 engagements

38.

39. De-centralized models

40. Bottom-up / top-down

41. Great experience

42. Social

43.

44.

45. De-centralized models

46. Bottom-up

47. Rich experience

48. Relationship, engagement, loyalty

49. Social

50.

51. The boom today: Check-in Services

52. The boom today: Check-in Services

53.

54. TastiRewards

55. Extended Loyalty Program

56. Associate Twitter &FourSquare with your membership card

57. Earn extra points for purchases

58.

59.

60. Exclusive badges without having to check-in but for doing something!

61. Complete a marathon? => badge

62. One pair of “trainers” is checking in at points and sends updates

63.

64. Checkin-in is not just about location

65.

66. One pair of “trainers” is checking in at points and sends updates

67.

68.

69. BlackMagic Event

70. 25% Foursquare & Twitter & FB discount

71. Foursuare=Show you check-in @ cashier

72. Facebook= print out coupon

73. Twitter= discount code at cashier

74.

75.

76. Privacy? Security?

77. Value proposition?

78.

79. Will shoppers go out of their way to visit Starbucks?

80. Or do they visit the closest coffee shop?

81. Would our centre benefit from the inclusion of a bookstore?

82.

83.

84.

85.

86. Location will be one of the key drivers of relevance marketing

87. We will see all flavors of LBS (back-ground, user-driven, ...)

88. The industry has to take care not to fuck up

89. create value (and incentives)

90. don’t see this as the next Holy Grail (well, it is, but not for you, for the user!

91.

92. Antony Slabinck – Lbi Belgium

93. IAB BelgiumFor research and their input for this presentation!

94. Thank you LBi Belgium Vorstlaan 191 Bd du SouverainB-1140 Brussels Kortrijksesteenweg 1144 bus N B-9051 Sint-Denijs-Westrem www.lbigroup.be Rik Lagey – Digital Addict Rik.lagey@lbigroup.be +32 476 22 76 00 Twitter: @rik_lagey

Editor's Notes

Conclusion: one of the keywords here through out all the cases is: simplicity – make it easy to use – make it even easier to share!

Location Based Marketing: what's in for me?

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