Geotargeted marketing strategies: Using location data to engage consumers
Banks and credit unions have yet to harness the power of location-based data lurking in consumers’ mobile devices. Even if they had access to it, most probably wouldn't know what to do with it. But it’s time financial institutions start experimenting with geo-targeting, because megabanks on the leading edge are already eyeing all the ways they can leverage location-based data to drive greater engagement and marketing ROI.
Starbucks has been using mobile location-based data for several years. They say that this kind of geo-targeting significantly increases the percentage of consumers stopping by for a latte. Could banks and credit unions increase sales and loyalty as well? Absolutely.
Think about it. Someone drives up to the drive-thru window of your branch and their phone sends them a text, welcoming them to your bank or credit union. Or someone visits a car dealership and gets a text informing them of your current promotional interest rate on an auto loan. Or after leaving your branch, they receive a prompt for post-visit survey on their mobile device.
According to data from Accenture, about half of all consumers say they want banking providers to play a supporting role in the purchasing process of non-banking products, such as a house or new car. They say banks and credit unions could assist with these important decisions by sending helpful contextual information based on their location, price range and other personal preferences — e.g., the best mortgage rates, or deals on auto loans or insurance. A Cognizant study had similar findings.
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