The Role of GPS in Marketing

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The main purpose of a GPS device is to give specific driving directions to your destination, especially if you don’t know where you’re going. And it would be a surprise to learn that GPS tracking and its principles are used by small and middle-sized businesses in their marketing strategy.

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In fact, the practice of collecting GPS data has been pervasive these days. It is used to give businesses a wealth of predictive information regarding their customer activity. Customer data, such as shopping and travel habits, that have been collected are then used to improve marketing offers and customer service. Aside form this, there are different ways how you can leverage GPS data.

Finding your customers’ predictive behavior between their travel duration and inactivity will give you insight regarding their lifestyle as you analyze what time of day they have maximum movement. Aside from the activities, tracking the anchor points or places where people spend more quality time in can be used to influence their buying behavior.

You also need to put the traveling distance into consideration because those who are traveling at a shorter distance have different habits than those who are traveling at longer distances despite taking the same route. Along with the anchor points, GPS tracking can be leveraged to influence your customer’s redemption behavior.

This includes determining the interaction that is happening between a person’s anchor point and his point of interest. For example, if there’s a Burger King between a person’s office and home, she is more likely to redeem an offer from Burger King than someone who does not pass by that way. Lastly, GPS tracking can be used to infer the interest of a certain customer by observing the places he or she frequents.

Businesses can greatly benefit from collecting GPS data. However, the challenge lies in the manner of collecting data which has a tendency to become fragmented due to the spread of location points. For example, GPS data collected from people using mobile phones show that one person can travel more than 500 miles within a time interval of 10 minutes. If one has to rely on these data, more reliable mechanisms should be used to yield better value.

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