How to use location-based marketing to sell product

What are location-based applications?

For years now mobile has held the promise of the “real-time” opportunity to communicate with customers as they pass by a physical location such as a store. We’ve been waiting and now it has become a reality.

There are two main categories of companies playing in this space. The first are the familiar ones, those that allow you to tag your location, pick up virtual goods or become a mayor of a location (Gowalla and Foursquare for example). The second are the ones offering value when you identify where you are such as mobile coupons and specials nearby (YOWZA! and ShopSavvy for example).

Why should you care?

  • These services offer a great and convenient way to interact with your current and potential customers — it’s another touch point.
  • You can offer location-based specials
  • You can price your product in relation to what your competition is pricing but do it localized
  • It is absolutely measurable and trackable
  • It is inexpensive
  • With mobile coupons, you can eliminate excess inventory again, localized

Both are valuable, both offer great opportunity, both are nascent industries and both are featured in some interviews done through UNTETHER.tv.

Here are some resources that will get you up to speed on this burgeoning industry:

  1. How Gowalla helped fill seats for the New Jersey Nets
  2. How mobile coupons are being used in the United States (with YOWZA!)
  3. How mobile coupons are being used in Canada (with Clip Mobile)
  4. How to find the best price based on your location (with ShopSavvy)