Location-Based Marketing in Customer Relationship Management (CRM)

Location-based marketing in Customer Relationship Management (CRM) 1
LOCATION-BASED MARKETING IN CUSTOMER RELATIONSHIP MANAGEMENT
(CRM)
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Location-based marketing in Customer Relationship Management (CRM) 2
Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................3
Brief analysis or literature review....................................................................................................4
Strategy........................................................................................................................................4
How Strategies need to be implemented......................................................................................5
Benefits........................................................................................................................................6
Generating more business opportunities..................................................................................7
LBM makes segmentation easier.............................................................................................7
LBM offers a better return........................................................................................................8
Challenges....................................................................................................................................8
How location-based marketing is not efficient and adequate......................................................9
Technology.................................................................................................................................10
Geo-targeting.............................................................................................................................11
Geo-Fencing...........................................................................................................................12
Beacon....................................................................................................................................13
Conclusion.....................................................................................................................................15
List of References..........................................................................................................................16
Appendix........................................................................................................................................19

Location-based marketing in Customer Relationship Management (CRM) 3
Abstract
With the current wide-spread penetration of the market in relation to mobile smartphones
in a global society, global communication, as well as marketing interest of industry, it is
necessary to make good use of the development that is rising. Despite different reports by
different authors on mobile marketing and ads, technological advancements are improving
numbers of corporations that use technological devices. There have been little studies of research
on the possibilities that the “mobile client society” provides. Moreover, application of particular
methods of marketing through mobile devices is misunderstood. This research paper aims at
attaining different strategies and benefits that location-based marketing has on management of
customer relations with the use of technology. The other elements under study are the challenges
along with technology that is in use in improving management of customer relationship. The
major assessment of this paper is to present the theoretical background of the concept of
location-based advertising in process of managing the relationship of customers.
Introduction
Technology and particularly the use of internet have had enormous repercussions for
ideas that deal with management of relationship of customer (CRM). In most cases, technology
has aided in process of streamlining many processes of CRM as well as reducing costs of CRM
initiatives. Moreover, several applications of technology such as Geo-targeting, Geo-fencing, and
Beacon has made location-based marketing in CRM to enhance operations of business among
organizations. The data provided by use of such technological applications has to remain
significant in improving present business activities. For inst ace, the use of Geo-targeting
remains to be an essential aspect in technology that improves operations of CRM by allowing

Location-based marketing in Customer Relationship Management (CRM) 4
people to send modified texts to various clients within a specified geographical area. Geo-
fencing as remained to be technology in location-based marketing within CRM that has made
offline retailers to be capable of setting the virtual perimeter around their stores. However,
Beacon as technological aspect in CRM remains to be technique used to improve marketing
operations (Wu and Stilwell 2018). Since the introduction of location-based marketing, adoption,
as well as the popularity of mobile marketing in a corporate setting, has consistently advanced
due to advancement in technology with use of internet. The idea of client relationship
management (CRM) refers to ideal strategies being utilized by the management of an
organization (Gana and Thomas 2016). Advent of location-based marketing (LBM) has
improved management of relations of customers around different markets. Noruzi (2013)
denoted that location-based marketing is fast becoming useful for organizations to remain
competitive. This presentation tries to address whether organizations are ready for such new
forms of marketing. It also tries to understand whether organizations are willing to take the leap
in order to benefit their prospect success.
Brief analysis or literature review
Strategy
The major strategy of location-based marketing in CRM is that it aims at managing the
interaction of any given company with current as well as potential clients. The system utilizes
data examinations concerning history of clients within the company (Pagani and Malacarne
2017). The use of such records aims at improving business dealings with different customers,
specifically focused on retention of customer and eventually driving advancement of sales within

Location-based marketing in Customer Relationship Management (CRM) 5
an industry. Location-based marketing occasionally referred to as ‘geo-targeted advertising’ or
‘place-based promotion’. It focuses on delivering the right texts to clients and prospective clients
when they are physically near to operations of a company. These promotion texts during
business operations are always sent to phone devices of customers. The delivery of such texts is
always through location-based operations-websites that specializes in offering this type of data
(Liu, Duan, and Ter Hofstede 2014). Therefore, it is clear that location-based marketing in CRM
relies on different aspects. For instance, it depends on smartphones that enable consumers to get
right to use rich elements of internet when in business community. It also relies on technology
that allows services to identify settings of mobile equipment along with businesses.
In multinational industries such as the Coca-Cola Company, the use of location-based
marketing through mobile devices are quickly turning out to be one of the most used electronic
devices in daily operations. Individuals in the present days seem to be unable to live or conduct
business operations without such gadgets (Kaur 2016). It is the manner in which business
operations in companies such as Amazon Inc. stay connected with its clients. Besides, the
upcoming together with extensive application of this technology in most companies provides
some exclusive as well as great opportunities for marketers. Additionally, it provides possibility
to reach any individual anywhere at any specified time (Stein, Smith, and Lancioni 2013).
Besides, the technique works to offer the potential for organizations to connect and interact with
consumers at a time when the information is most relevant.
How Strategies need to be implemented
Different companies need to concentrate on use of advanced technology in order to
increase the use of different operational strategies such as use of mobile devices in operations.

Location-based marketing in Customer Relationship Management (CRM) 6
For instance, multinational industries company such as Coke can focus on the use of electronic
devices in daily operations to improve how they market their products to consumers in various
markets. Idea of encouraging marketers to establish value exchange in any location request can
help in improving strategy of distribution of products to different clients around global society.
moreover, idea of offering special service tailored to location or location-based can help in
offering incentivize user towards turning on technology usages such as Geo-fencing, Beacon,
and Geo-target on their mobile gadgets (Steel, Dubelaar, and Ewing 2013). Moreover, adherence
to privacy can help in improving the idea of implementing strategy of Geo-targeting and Geo-
fencing to improve marketing strategy that every company uses in order to remain competitive
around business setting. Appropriate location of funds for process of implementing use of
technological techniques remains as a vital strategy in the process of implementing use of
technology on business operations. There is need to boost in-app conversation and rate of
responses to help in improving the use of technological techniques such as Beacon, Geo-
targeting, and Geo-fencing in CRM. The idea can allow different clients that an organization
target to be able to use Geo-fencing to register easily. It can also help different clients that use
Beacons to check-in at the key entrance points through their phones when they conduct their
business operations.
Benefits
Location-Based Marketing in Customer Relations Management is important in the
operations of most organizations. For instance, it automates the information gathering course
during operations of different companies. It is evident that the use of such operations helps
organizations save their costs of operations by facilitating better trading operations (Hananto,