By Mitesh Patel
Think of Uber, Instagram, and even Pokemon Go. All these mobile apps have brought radical changes in transportation, social networking, and gaming sectors respectively. What is the driving force of these apps? It’s location-based services or LBS. As the name suggests, location-based services are associated with the capability to find out the location of the mobile users and provide services based on this location.
Barring privacy concerns, LBS and location-based apps have made our lives easier. These apps can act as a portable guide while we roam through metropolitan jungles or go for an adventurous trip.
Today, we have over 2.5 billion smartphone users worldwide and they can be a target audience for various industry sectors including hospitality, education, retail, transportation, entertainment, and healthcare. Besides, various enterprises across these sectors are thriving amid growing competition, and they need customized app solutions to manage critical processes and get the dual benefit of connectivity and customer engagement.
How does LBS Work?
A customized mobile app enables modern enterprises to meet needs related to customer engagement, marketing, and the like. As per the Pow Research Center report, over 90% of smartphone owners use apps to get the location. Companies rely on location-based services on their consumers’ smartphones to send relevant offers and personalized messages.
These days, many enterprises send customized notifications on the basis of factors like user behavior, preferences, geographic location, and purchase history. Talking about the LBS market, it is increasing at a CAGR of 43% with a growth of over $8 billion. Location-based services work wonders with the help of GPS (Global Positioning System) and GIS (Geographical Information System).
LBS is nothing but a two-way communication system between the customer or app user and a service provider. When the user gives all necessary data related to their location, preferences, etc. the location-based services deliver the customized information to the user. Here the GPS plays a crucial role to find the location of the user.
Let’s take an example of Google Street View. This satellite-based service facilitates many companies to find the exact location of their customers.
Image source : www.statista.com
Top Beneficiaries of Location-based Apps
Let’s go through some of the top industry sectors that have leveraged the benefits of location-based apps to grow the customer base and overall business.
Brick-and-mortar retailers can make the most from location-based apps. Leading retail stores like Walmart and Target have successfully used geolocation-tracking apps to enhance their in-store experience. Be it finding the nearby store or selecting a convenient pickup location, the location-based app always remains handy for shoppers or customers. Some of the brick-and-mortar retail stores and supermarkets also integrate Beacons in their apps to offer an indoor navigation feature to their customers.
Many modern retail apps also enable the physical stores to send personalized notifications to the prospective customers as and when they come in the vicinity of the store. These apps also work on LBS.
- On-demand delivery services
The on-demand economy is thriving at a tremendous pace, and the location-based app is in the driver’s seat. Let’s take the example of food delivery apps. …read more
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