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Unlocking the potential of location-based services
The UK is described by Ofcom as a nation addicted to smartphones.[1] And as smartphone technology has developed, so have location-based services (LBS).
Although still in their infancy, 2012 will be a big year for LBS as more and more companies recognise their ability to increase revenue, customer engagement, loyalty and satisfaction. This article gives a quick taster of how some of the most exciting LBS are helping users today and how they are adding benefits to businesses.
What are LBS?
LBS allow location aware apps and websites to use information from the likes of mobile networks, Global Positioning Systems (GPS) and Wi-Fi networks, as well as local-range technologies such as Bluetooth and infrared, to determine your approximate location, with varying degrees of accuracy. As we’ll explore in more depth below, this knowledge can be used for so many applications, from making eating out more affordable and keeping tabs on children much easier.
For privacy protection, LBS are user-driven. Users must activate such services on their mobile device and give their permission to each app or website before it can use their location data. Information is collected anonymously so it doesn’t personally identify the user.
Research by the Mobile Marketing Association shows around 66 per cent of iPhone owners use LBS at least once a week.[2]
4 great examples of LBS
1. Shopping
From discount vouchers to special offers, close proximity shoppers who want a good deal are a key market for LBS. Groupon for example is a mobile and web-based app that allows you to browse and buy great local deals, as well as receive real-time deals in your immediate vicinity.
The results Groupon has achieved for some of its corporate clients is staggering. One newly opened London restaurant for example partnered with Groupon to promote £8 vouchers with a value of £20. The target was to sell 400 within the day – but by the end of the day 3,006 had been sold. More than 100 of these customers have become regulars, accounting for 30 per cent of revenue. Perhaps it’s no surprise that 91 per cent of Groupon’s clients want to be featured again.[3]
2. Tracking
LBS tracking services using GPS data have many personal, social and business applications. From tracking children to a scheduled delivery, friends to employees, the service allows you to know the exact location of someone or something. For businesses, it can reduce costs and increase efficiency, for everyday users, it can make life a little easier.
For example, iPhone users can take advantage of the Find My Friends service that allows you to let others know your whereabouts. Similarly, Lifestyle Services Group’s client-branded phone locator app enables users to view their lost, stolen or misplaced phone’s location through a website.
With 92 per cent of parents interested in a service enabling them to view the location of their child using their phone, Lifestyle Services Group is currently in the research and development stage of a new service which will allow parents to monitor their child’s whereabouts. The service will enable parents to see where their child is on a map and even follow their real-time walk home from school.
Geo-fencing capabilities will also additionally allow boundaries to be set so parents can receive alerts when their child enters or leaves an area, such as the school premises.
3. Information
LBS are increasingly providing us with the information we need, where and when we need it. Quick Response (QR) codes for example bridge the gap between offline and online and are now often seen on products and marketing literature. Used by companies ranging from John Lewis to Wilkinson Sword, users can scan the code using their smartphone and go direct to a mobile site for more information and even to buy the product.
Unlike traditional offline marketing activities, the success of QR code campaigns is particularly easy to measure, making them a useful tool in improving the effectiveness of marketing tactics and strategies.
4. Directions
A recent survey shows 55 per cent of smartphone users have used their phone to get location-based directions or recommendations.[4] In addition to giving you turn by turn navigation to any address on your phone, many LBS will also make suggestions for you. Google Maps for Mobile for example can help you find yourself on a map and then locate places nearby. The app, which is used to navigate 12 billion miles every year, recently added indoor navigation to its list of mapping and direction-giving capabilities.[5] Similarly, ArtSpotter is a niche art-finding app that allows you to find nearby exhibitions, galleries and street art.
Direction apps not only have the power to increase customer satisfaction, but can also increase revenue by driving new customers, that may have not known you exist, through your door.
David Jones, Product Innovation Manager at Lifestyle Services Group, shares his views on LBS:
“Companies are only just beginning to realize the power of LBS and the immediate returns they can generate. Once they can harness providing customers with relevant real-time offers at the right time then the opportunities are endless.”
What’s in store for 2012?
For 2012, we can expect to see the adoption of LBS increase as more people discover their wide range of capabilities and benefits. This will encourage more companies to develop apps that offer more value for their customers and provide additional ways to drive revenue, loyalty and growth.
David Jones adds:
“It is certain that this technology will continue to develop at a frantic pace, and the killer applications of the future are not even being thought about yet.”
Of course, privacy issues will always present service providers with the challenge of not becoming too intrusive. However, providing users opt-in for such services and can easily opt-out, and companies provide a service which is genuinely worthy of users trading their location information, LBS offer superb benefits for both users and service providers. After all, could you manage living without your smartphone?
If you would like to discuss any of the LBS opportunities or services provided by Lifestyle Services Group, please contact our Business Development team on 01270 413000.