The Incentives of Using Local Business Services

Since Google released Google Places app for iPhone early in this year, location based services (LBS) becomes one of the most talked topic in the mobile marketing field. Those mobile apps can offer people navigation (e.g. Lonely Planet apps), allow them to obtain information and leave comments on stores (e.g. Yelp), and help them win discounts and coupons by simply “checking in” to shops (e.g. Foursquare).

How can LBS attract users? One reason could be the convenience it may bring to people. While accessing information it self is no longer a problem with the explosive growth of internet, the consideration of LBS is to enable people to access what they want whenever and wherever they want it. Therefore, the core is to integrate the three factores – information, time and places together, to create the convenience for people.

Moreover, LBS also contributes to the Online to Offline(O2O) commerce that is now using discounts and coupons to attract people. Technologies such as QR code and Near Field Communication (NFC) are nurturing possibilities for future business. Other business models such as Groupon are aslo trying to be integrated into the trend.

Except for the information and money factors, it is worth to look at other incentives for people to use LBS. While LBS is trying to take advantages from social media (e.g. facebook places) to maximize its marketing effectiveness through the word of mouth, it is the time to think about why people are willing to share their geographic information to others.  Does the fact that“ I have been to this restaurant/theater/concert” say something about myself? Why I want to show to others where I have been/am/want to visit? Will the information of “I am now here doing this” enable me to connect to people physically around me? The purpose of using LBS may not just be finding information about one place and spend less money there. It could be using the places s/he have been to express themselves.

Source: apps.facebook.com/whereivebeen/

While the existing apps and websites are mostly focusing on the first two incentives, the third one of self expression and social interaction are usually ignored. It would be great to see if the three incentives can work together for future LBS applications.

References:

1.Geolocation&Location Based Services – Opportunity Knocks: http://www.webmapsolutions.com/category/mobile

2. O2O Commerce is the New Hot Methodology for Local Business: http://www.buzzle.com/articles/o2o-commerce-is-the-new-hot-methodology-for-local-business.html

3. Why social Media Should Welcome Location-Based Services: http://www.businessweek.com/technology/content/sep2009/tc20090927_138649.htm