‘Location data can be used both for acquiring & retaining customers’

Hyperpersonalization has transformed the marketing industry. Data all around has been used to target the right consumer. Location is one such data that provides marketers with additional information about their consumers and requirements.

At the e4m Screenage Conference, industry leaders discussed the topic: ‘Exploring the synergy of location-based marketing’ to convey the different ways in which this data can be used for ad targeting.

The panel was chaired by Aditi Gupta, Assistant Editor, exchange4media. Others on the panel were Sugosh Iyer, General Manager - Digital Marketing and e-commerce, Grasim Industries; Prerna Mittal, Head: Go To Market, Regional Marketing, Tata Motors International Business, and Rathin Lahiri, Head Marketing and CSR, SBI General Insurance.

The discussion revolved around the potential of geo-targeting and how brands use this data to solve marketing problems plus the challenges that arise with it.

Speaking of location-based marketing, Prerna Mittal explained how location-based marketing helps in solving traditional marketing problems and does not always have to be looked at from an ROI point of view. “I think when it comes to location-based marketing or geo-targeting or hyperlocal marketing, we need to understand the different points that it fits into your larger business strategy and your business objective for the year. So, if we can use this strategy with a bigger picture, I think it will help us get better results. We need to explain to people that not everything will drive with ROI, we will have to set our key responsive matrix. So, if it is a tactical ad, there will be an ROI on how much we use, how much footfall etc. But if it’s a lot different business objective altogether, maybe the same ROI will miss key factors that will not come into the picture and that’s the clarity that as marketers we need to bring in the organization.”

“I think any of these digital tools, which are coming in with location-based marketing and geo-targeting as one of those new features will solve your traditional marketing problems,” she added.

According to Rathin Lahiri, location data of a consumer can be used for acquiring as well as retaining consumers. Through location, especially in the financial services industry, you can figure out in what location what kind of life insurance can be marketed, depending on whether it is the mountains which are more prone to earthquakes compared to other areas or depending on the lifestyle of people in that location. “So actually, acquiring the customer is just a phase one. Ideally, you want to keep him for 10 or 20 years because that’s when you will realize the full lifetime value. So, we use a whole bunch of parameters to decide marketing on both the acquisition front and the engagement. To summarize, I think acquisition is one part. But even more important, I think is retention, analytics, upsell and cross-sell. That’s where a lot of value lies.”

Explaining the workings around location marketing, Sugosh Iyer said, “So with location marketing, it happens largely through the IP address that's mapped to your mobile devices, to location targeting when you switch on your location setting on your mobile and to Wi-Fi targeting. These are some of the journey points, plus a user browsing behaviour as to which area you normally browse, and what are the searches you do. It's largely a mix of all these things. In terms of what has worked for us or how it is so far, it’s always been a double-edged sword as to how much I can invest in location marketing.”

“Location marketing is an opportunity that can be used as a starting point of a journey to acquire new consumers and customers and then take it from there,” he added.