Guest Column | September 30, 2022

How Does Location-Based Technology Work And Why You Need It For Your Business

By William Powell

Location icons of gps navigation iStock-1286943539

Modern consumers increasingly rely on smartphones and other devices to help them navigate the world. This trend has led to an uptick in demand for location-based technology to power the apps that make this possible. Here is a look at the mechanics behind this powerful technology and how it can benefit your business.

What is Location-Based Technology

Location-based technology is a software service for mobile devices that uses geographic data to power an app. Examples of popular location-based apps include maps programs, weather apps, rideshare services like Uber and Lyft, city guides like FourSquare and Yelp, and augmented reality games like Pokémon Go.

Even top retailers like Lord and Taylor and Duane Reade are testing location-based apps to better serve their customers. Location-based technology has massive potential to improve the customer experience and help consumers find a location or service provider that is convenient for them. So, any business looking for a competitive edge should consider implementing this technology.

How Does Location-Based Technology Work?

Location-based technology uses a smartphone’s GPS to track the user’s location, then communicates with other devices such as satellites and cell towers to create a holistic map of an area that the app can utilize.

Location-based technology is permission-based, meaning users must agree to allow apps to access their location data in their settings. For example, iPhone and Android devices allow users to enable and disable location services if they so choose or specify when a given app is permitted to access the data.

Location-based technology often relies on one or more of the following tracking mechanisms:

  • GPS
  • Wi-Fi
  • Cell tower triangulation
  • Bluetooth
  • QR codes
  • Radio Frequency Identification

Companies that want to create a location-based app fit for customer use often rely on Map APIs to aid in the development process if they don’t have a huge budget to start from scratch. Map APIs provide a coding template that developers can use to extract location data from databases developed by experts in the technology – saving you time and money from having to do it all on your own. Maps APIs allow businesses to create an intuitive app that utilizes location-based technology without fearing glitches or malfunctions.

Why Your Business Needs Location-Based Services

Location-based services are becoming widely adopted by businesses across a variety of industries. So, if you want to stay competitive, you’re wise to consider implementing this innovative technology into your marketing strategy. Here are a few reasons why your business needs location-based services.

Better Customer Experience

The biggest advantage of location-based services is improving the customer experience. It allows you to offer more relevant content and information, rather than spamming users with ads and opportunities that are useless to them. Location-based services also enable customers to share their experiences with others in their network, which can help spread the word about your business.

It shows that you’re willing to take the extra step to ensure customers get the service they need without hiring additional employees. There are so many different ways that you can use location-based services to help your consumers.

You could help them find your nearest location, allow them to check in and earn rewards or connect with contractors on your platform who can help them accomplish a goal. So, the sky's the limit.

Enhance Marketing Efforts

Location-based marketing is one of the newest trends in advertising and offers endless possibilities for businesses in many industries.

According to the Location-Based Marketing Association (LBMA), 47-84% of companies currently use location-based data to serve their customers. Rather than wasting precious resources advertising to a broad pool of users who may or may not be interested in your offerings, you can use location-based technology to target only those most likely to take advantage.

For instance, if one particular location is hosting a sale, you can target only those who live within a certain radius rather than sending out notifications to all your customers across the country. Doing so can save you time and energy and keeps your customers more engaged because you’re sending them valuable information, not spamming them with messages they won’t find relevant.

Gather Customer Analytics

Location-based technology also allows you to gather valuable analytics on your customer’s behavior. With this powerful technology, you can identify the geographic areas that your customer’s frequent with stunning accuracy. It makes it easy to determine which of your brick-and-mortar locations gets the most foot traffic and can help you decide where to expand.

It also can show you what types of promotions get customers to leave their homes and visit one of your stores, which can help you improve your marketing efforts. Essentially, location-based technology can help give you valuable insights into how your customers behave, which you can use to make smarter business decisions.

Beat the Competition

Location-based technology also can help you create a funnel that allows you to avoid any interference from the competition. When customers search for a product or service they need, they’ll tend to rely on a Google Search or word of mouth, where your business will have to compete against all the other companies vying for their attention.

Instead, you can create a handy app that will lead them directly to your location when they need something you offer. Location-based technology allows you to create an ecosystem that you control, leading clients directly to your business and eliminating the possibility of outside interference.

Ultimately location-based services can enhance any business's marketing abilities and customer experience. So, any company looking to compete in today’s world is wise to invest time in understanding this powerful technology.

About The Author

William Powell is a writer and educator with a passion for marketing. He enjoys learning about the latest business trends and analyzing how global events impact domestic and international economies.