Location Based Services - Targeting the customer on the move

My colleagues are doing it, a lot of my friends are addicted to it, in fact even my wife is using it almost on a daily basis.

I am talking about Location Based Social Networking which has been the buzz of late. Companies such as Foursquare, Facebook Places or Gowalla (to name just a few) have created mobile apps that allow users to "check-in" to a physical place with their smart phones using a GPS signal and share the location with friends. That's really great if you want to meet up with people in a similar proximity such as the café nearby or join them for the latest movie release.

Having witnessed this phenomenon in my immediate social network, it struck me as odd why the potential of geo tracking has not been exploited more by the industry for luring customers into retail spaces, restaurants, movies or hotels etc.

While researching the web I came across a couple of smart phone apps introduced recently in the US, that have the potential to radically change the habits of shopping.

The first is called Shopkick. Its the first mobile app that gives the customer rewards and offers simply for walking into stores, for scanning products, and for signing up friends. A "signal” hardware triggers check-ins when you enter participating retail spaces; the app then awards points (“kickbucks”). What's even better, the app knows not only that you’ve entered the store, but also the specific section that you’re in, and tailors the deals accordingly. Existing GPS based systems such as Foursquare and Facebook Places are way too inaccurate to determine the exact position and require a manual check-in.

While this is currently mostly tailored to benefit retail chains (and consumers), I am intrigued by the possibility what a similar reward system could offer to companies and brands like Panasonic. Imagine receiving reward points by simply scanning Panasonic product barcodes. Or being reminded of the latest Panasonic products and special offers once you enter a certain area in the retail space (e.g. TV section). Its like advertising directly where the decisions are being made, only more targeted, measurable and with a clear call to action.

And the future promises to be even more rewarding with kickbucks awards and promotions eventually targeting consumers according to age, gender, geography, shopping frequency or purchase history.

The second location based app that caught my attention is Geoloqi, a hyper-customizable GPS based automatic check-in app that will help trigger events if and when a person walks up to certain pre-set location. For example, it allows you to set automatic reminders and notifications (so called geonotes) — sent to you or your friends — say, a grocery list that pops up as you enter a supermarket or a note that warns you of endangering your diet upon approaching a certain fast food restaurant. That's pretty ingenious!

Although Geoloqi is a private network and currently without any commercial intentions, its a perfect showcase of what is possible in the near future, turning locations into programmable data and actionable information, e.g. providing location based recommendations on specific products and offers upon identifying that the customer is approaching a certain store.

And once the customer returns back home after buying the product, a geonote is send with some advice for the installation. Or the service turns on the airconditioner or heating on when you check-in at home from work... the opportunities are endless.

Have you had any experience with location based services? Please share your thoughts and comments.

Posted by Merlin Wulf (PME)