How Location-Based Mobile Apps Enhance Customer Engagement and Deliver Better Experiences

The raging popularity of smartphones isn't news, and it's easy to see why they have become such an integral part of our existence today. They offer myriad conveniences and come with technologies that can be leveraged to make further our lives easier. One such thing that is common to all smartphones is the GPS (global positioning system) chip, which detects the device's location via GPS satellites. Today, a vast number of businesses use this provision to their advantage through location-based mobile apps. Besides using it to deliver significantly better customer experiences, businesses across the globe are also leveraging geolocation to enhance their customer acquisition rates. How? Well, geolocation enables them to provide convenience and real value-addition to their customers. Companies also use geofencing to detect users' precise location via three triggers: dynamic, static, and combined. These triggers get leveraged used to assess customers' proximity to a specific location. Once the site is tracked, businesses can then send relevant notifications tailored to their preferences. Moreover, offering contextual and relevant information as well as services have long been proven to be one of the most effective methods of productive customer engagement and customer acquisition. Perhaps one of the most excellent examples in this regard is Starbucks -- as soon as someone enters the geofence around its stores, they are sent a discount coupon to attract them into the store. Another excellent example is BMW UK; the carmaker, around the launch of the 7 Series, leveraged location as a frame of reference to extending its reach to its core audience, i.e., high-earning individuals. As a result, it achieved an expansion rate that was 3 percent more than the industry standard. However, as mentioned above, increased customer acquisition isn't the only advantage proffered by location-based apps, and they can also be used to deliver significantly better customer experiences, which, in turn, improves a business' retention rates. Case in point, a ride-sharing company, can use its customers' current location to offer apt tariff-related offers. Another illustration of the power of geolocation can be found in travel apps -- they can use their users' location to share apt information about local sights, restaurants, and more. It can prove to be a significant plus point with travelers who are traveling to a new city. Also, that's not all -- geolocation can also be combined with other technologies to deliver unique customer experiences. Case in point augmented reality (AR) -- one can use this technology to add certain things to physical surroundings, thus instantly creating a virtual world for the benefit of the customer. IKEA created an augmented reality app, called IKEA Place, that allows customers to see exactly how furniture items would look and feel in their homes. Cutting a long story short -- mobile apps based on location have already proven to be excellent mediums for delivering superior customer experiences and improving customer acquisition rates. So the way things are going, it is very likely that they will become central to any business' strategy, no matter the market it operates in.