Ethan Li

Project Manager

August 7, 2015

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Success with Location-Based Mobile Marketing

Stores use geofences to push e-coupons and target nearby customers

With the omni-channel trend rising, retail and bank industries keep on looking for new ways to boost their competitiveness, and differentiate themselves with others remain traditional. Geofencing is one of key technologies practically utilized in Location Based Marketing. It is an application in a software program that uses the global positioning system (GPS) or radio frequency identification (RFID) to define geographical boundaries. Geofencing creates a virtual fence around a specific area= which could be flexibly defined based on the store catchment or ad campaign area.

How does it work? When marketing team decide to set up a campaign in high-foot traffic area for one or two months , to attract new potential customers  to visit physical stores nearby. Traditionally, marketers would hire temporary interns to distribute hardcopy flyers during rush hours. Yet they never know whether the efforts are helpful or not. With geofencing approach, marketers can easily track events results.


Push discount favors when consumers walk into certain areas

Marketers can generate a defined-radius catchment around multiple stores all at once in the very beginning. They can even freehand draw boundaries within the territory of competitors in digital maps, and then schedule better daypart together or individually, to activate the digital marketing campaign in minutes systematically. While potential customers enter these defined geofencing boundaries at the right time, either near the stores of theirs or competitors, apps with embedded SDK installed in the smartphones will trigger the pop-up banner or message. These promotion ads notify customers e-coupon or discounted products, which would lure them to walk into stores. Additionally, marketers can further calculate redemption rate precisely in terms of visit counts of customers using these e-coupons in the back-end system.

On the basis of many authentic experiments and studies, geofencing LBS advertisement drives much more cost profit ratio than the traditional flyer distribution . Therefore, it is important to consider how to apply the application in your operation and marketing campaigns.


Featured image source

originally posted to Flickr as Alone/Together

Sam Ho

SVP, Data Intelligence

March 6, 2015

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Simple Retail Trick to Push Consumers Shop

Leveraging location-based technology to pump up revenue


The goal of the marketing is always to send the right message to the right people at the right time on the right spot. Location-based marketing or geo-marketing seems trendy now but it is not a new idea at all. Traditional billboard ads at “selected” locations, or “regional local” TV commercials are also applying “location-based” concept in marketing campaign since it is broadcast the message to certain target audience by selected areas.

In the earlier web era, marketer used email or other web site to do promotion electronically but had not much choices on location or target segments. It was just a transformation from printed format to electronic format and was still a blind and massive way to push “unappreciated” message out to consumers.

Location-based marketing helps target consumers more precisely

Sending out the “right” message to target consumer is always the challenges to the marketers. With new technology and mobile device wildly adoption, it is now possible to capture where and when the consumer is, which presents consumer’s lifestyle as well as the product preference or interests. In short, location-based marketing can be more precisely target the potential clients to raise the campaign success rate. There are two main technologies used in location-based marketing currently:

  • Geofencing – It is the application or software that use GPS technology to establish a virtual perimeter or boundary around a physical geographic location, which requires satellites and cell phone towers to communicate with mobile devices. It is used in outdoor and larger areas to identify consumer’s proximal location.
  •  Beacon – It is a device by using bluetooth technology to constantly emitting a signal to the receiver (mobile device) within a very short distance to trigger an application. It is usually used indoor to know more precise location of the consumer.

With those two technologies, marketers can track the consumer no matter they are indoor or outdoor, and hold different marketing activities to consumers based on the locations and time.


Nowadays Location-based marketing usually involves the four elements:

  1. Smart phone/ tablet device – It is the central media to interact with consumers. Without the device, it is impossible to make the campaign happen.
  2. Proximal location identification technology – As described above, it is to get where the consumer are in real time.
  3. Campaign APPs – All the promotion idea and objective of the campaign are delivered through the APPs, which is the most critical part of the marketing activities.
  4. Consumer’s behavior database/ model – No matter it is real time analysis or pre-set model, marketer needs to know what the consumer is interested or care, so that the appropriate message/ actions can then be brought to consumers.

More and more retailers are using location-based marketing campaign and getting good results from it. It is not just the trend but seems like an essential element to involve location component on all service to bring customer with better experience on shopping.

Below are some interesting and successful location-based marketing cases:

  1. Paul Bakery in Prague, the Czech Republic, 2012: Sending the SMS message to those people within 1-km radius at lunch time for free croissant and coffee. It is the most direct way of using geofencing technology for campaign.
  2.  The Montana Bureau of Tourism, USA, winter of 2013-2014 : Pre-setting targeting consumer and analyzing demographics, sending out the relevant ads to those people who have visited ski-related store or locations in that season. This campaign combined consumer analysis in-advanced.
  3.  American Eagle, USA, 2013: Shopkick roll out 100 AOE stores with iBeacon trial plan. Customers will get message of the specific promotion of the store righter after they walked in the door.
  4.  Macy’s, USA, 2013-2014: in 2013, Macy’s applied iBeacon with opt-in app to track customer in store for promotion, and it seems play a big role for the 2013 black sales. In 2014, Macy’s combined the Apple pay to enhance customer’s shopping experience and convenience in store.
Kenny Lee


December 1, 2014

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How Location Intelligence Benefits to Your Business?

You have heard that over than 80 percent of enterprise data has spatial components based on IDC market. But what is Location Intelligence got to do with it? and how can it transform your data from an underutilized asset into a source of competitive advantage?

By mapping locations, agencies and businesses can find new insights about business operations and processes, and improve services for customers. For organizations, the use of business location data and GIS increases collaboration across the agency, along with improving business functions. In many instances, GIS software can be layered on top of CRM or ERP systems, making implementation very easy, and leveraging resources in new ways.

Location analytics is a critical business asset that will provide a competitive advantage by adding geographic and location context to information enables organizations to understand more about their customers, whether they are other businesses or consumers. It provides critical business insights, enables better decisions and improves processes and performance. Location awareness can benefit efforts in marketing, sales, and customer acquisition and retention; logistics and supply chain management; and financial and operational decisions, not least among them where to place retail outlets, business assets and people in various functions. It also can increase the value of technological innovations such as business and social collaboration, and even mobile technology that is used by the business and customers along with the analysis of social media commentary and other expressions of customer sentiment that could be part of big data efforts.

Here are a few examples of how location intelligence is being used today in a variety of different industries.

  • Site Selection: The decision about where to locate a new store or facility, is probably the most common application of location intelligence today. When location data is combined with available real estate, demographic data, current customers characteristics, and information on the most likely prospective customers, the resulting Location Intelligence can help identify a site location with maximum revenue potential.
  • Store Performance Management: Detect and categorize poorly performing stores and assess the strategies to uncover the relationship between stores, products and customer types that affect sales performance. In addition, location intelligence can be used to forecast and develop store-specific budgets and expectations based on the size of surrounding demographics and other location specific information.


  • Risk Assessment: Location is extremely important in the insurance industry, where customers and natural disasters are both tied to a location. When a natural disaster occurs, insurance companies have the capability to instantly understand their claims exposure by visually plotting their customer data and the affected area on a map. This also allows them to more accurately estimate the number of resources they will need to service claims in an affected area.
  • Customer Preference: Understand who your consumers are and where and when they want to engage with you. Optimize retail stores for maximum customer engagement increasing profits and brand loyalty.
  • Healthcare: a significant percentage of disease is caused by environment.  There is a tremendous amount of knowledge to be gained and disease to be reduced or eradicated by understanding these effects.  Health records tied to user home and work location can be a massive benefit for researchers.
  • Government Public Affairs: Monitor and identify pollution violators.  Determine deteriorating areas of a city and revitalize.  Gain more input from citizen reporters and be able to analyze and take action.  Create transparency to stimulate self-regulation at scale.

Also worth reading:
Why SNO Is The New SEO For Retailers
How Big Data & Social Media Are Changing Retail
5 New Technologies Boosting Retail Sales



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