The benefits of geo-targeted communication

The mobile market is booming, therefore we have access to more geo-targeted data than ever before. Use it to improve customer retention


It's no secret that the mobile has started taking the lead and has outnumbered desktop sessions around the world. Markets like India, Indonesia and Mexico are the most prominent mobile markets on the planet and are considered mobile-first. In India alone there is more than 400% more smartphone traffic compared to desktop.

This explosion of the mobile market has redefined the expectations customers have and has reshaped the relationship between them and the services they pay for. Customers can no longer just accept canned responses. It is estimated that nearly 85% of clients already expect personalized communication from the services they use.

One of the biggest benefits of the boom of the mobile market for companies is the amount of geo-location data that it has created, and how this can ramp up the personalization of your marketing, thereby improving customer attraction and retention. We look at some of the benefits of using geo-targeted communication in your digital strategy.

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Geo-targeting data is relevant

One of the most significant benefits of location-based marketing is that you can provide geographically relevant information to your customers and not just expose them to a storm of unimportant advertisements. Imagine receiving an ad about the opening of a new retail store, which is 200km away from you.

The ecology of our customer's attention is an essential problem we need to take into account.

You can use location-based push notifications

Let's say you're a sports clothing retailer. You can build customer loyalty campaign around the geolocation of both your existing and potential clients. For example, try creating a campaign that will send a push notification to your customers when they pass near one of your competitor's stores.

You can also thank existing customers via push

Letting an existing customer know about a new loyalty program or offering them a –15% discount for former customers will often prevent them from looking into other options.

And you may be thinking that this is too invasive and maybe customers will be demotivated by these tactics, but research shows that nearly half of mobile users don't mind receiving an ad once a week or so. Simply follow the general formula of a push notification's relevance:

"Action + Location + Value = an actually relevant push notification."

It builds a relationship

It is essential that we appreciate location-based advertising as a chance to strengthen our relationship with our potential and, most importantly, existing customers. A geographic location, in fact, provides you with a lot of data besides the location itself.

Take weather for instance. Suppose you're located in Antwerp, Belgium, and it's going to rain for a couple of days starting tomorrow. You can use this information by first warning them about it, second - make a special discount on the raincoats you have. That not only provides them with the discount value, but you also show your customers that you care and that you actually appreciate their business.

Thus offering your customers content that is highly relevant to their location and their experiences you'll be able to create a long-term relationship. The combination of valuable data and a valuable offer will ensure that a large number of your clients will engage with the ad. In a sort of way, you need to be "where your customer is".

You can improve and inform

One of the essential things that help businesses retain disengaged customers is letting them know that they've optimized a couple of things. Letting your clients know that you're permanently working on your issues to provide a better service builds trust. But you can also use location-based data to focus on particular issues in specific locations.

For instance, you have shops in multiple cities in the US. By using social media location data, you'll be able to see when customers have been complaining about long queues in one particular shop in Memphis, for example. Once you sort that out, try sending out a message to your customers that waiting lines are 70% shorter in that shop in particular.

This way, you'll be able to derive valuable information about your business, followed by motivating multiple clients to reconsider shopping at your store.


Retaining existing clients is one of the most viable solutions to stable business growth. It is often the case that the efforts applied to attract new customers are far greater than the ones of retaining an existing customer, both logistically and financially.

According to a recent study by Gartner, by retaining an extra 5% more clients will generate up to 125% more revenue. It's hard to underestimate the importance of connecting with your customer base, and it seems that location-based communication is among the best solutions out there.

Customer retention starts with the first customer interaction and continues throughout the customer's entire relationship with your organization.


Pauline Farris, who authored this article, speaks Portuguese, English, Spanish and Italian and currently works as an interpreter for TheWordPoint.

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