location-based mobile marketing

How location-based mobile marketing can influence consumer buying decisions

Using location-based mobile marketing at the beginning, middle, and end of a consumer’s shopping trip can boost sales and improve their overall experience. It’s a means of connecting with the consumer while taking the burden off employees who need to stock shelves and man registers. Mobile moments throughout the shopping trip can create a lasting impression that drives brand loyalty.

Leveraging mobile technology in the shopping aisle provides CPG brands with an abundance of opportunities. With this technology, brands can connect with retailers and use their in-store apps to guide consumers to their products. Alternatively, they can work with third parties to influence consumers’ buying decisions through incentivization. Location-based mobile marketing offers brands the opportunity to travel with consumers and improve connections.

Location-Based Mobile Marketing Benefits at the Entrance

Store greeters are a traditional staple in retail but may not act as the best ambassador for brands. These individuals work for the retailer, rather than each individual brand, so they’re not likely to offer specific product information. On top of that, many retailers have done away with the position due to staffing issues. Virtual greetings eliminate these limitations for brands. Typically delivered via a shopping app, the process works as follows:

  1. Installation: After downloading a shopping app, consumers can choose to enable GPS tracking to allow the app to monitor their location. In exchange for this information, the app provides rewards points, (or in Shopkick’s case, kicks) for various purchase behaviors, like entering a store or interacting with a product.
  2. Notification: When a consumer arrives at a participating location, GPS mapping and beacons work together to push a message to their smartphone.
  3. Incentivization: A welcome notification appears on the consumer’s phone. Shopkick, for example, rewards consumers with points for merely walking through the door, which allows their shopping trip to begin on a positive note.

Virtual greetings don’t have to be overly complicated.

Virtual greetings don’t have to be overly complicated. They can involve simple rewards points, or brands can branch out with more tech-forward video greetings. In either case, these features offer the same benefit of an entryway greeter, while also allowing brands to scale and target the message.

Guiding Consumers to Products in the Aisle

Retailers may offer consumers store maps, price checks, and other virtual options for gaining product information. Shopkick, for example, acts as a virtual sales assistant and offers brands an innovative way to make their products stand out. This process works automatically.

  1. Notification: Through the app, the consumer can view a list of participating products which offer various rewards for interaction or purchase. They can also gain additional information such as pricing details and item features.  
  2. Priming: Consumers can take part in a virtual scavenger hunt in which they find items in store, and scan the UPCs with their camera phones. The act of physically engaging with a product creates a sense of familiarity which helps consumers remember the brand and encourages them to buy the product.  
  3. Incentivization: The consumer receives points for the action and associates that incentive with the product, growing brand affinity.

location-based mobile marketing benefits

Shopkick has found that the best way to encourage consumers to participate in rewards programs is to offer incentives for more than just making purchases. This strategy allows the app to gamify the mobile customer experience at multiple stages throughout the trip, with the ultimate reward being received after a consumer purchases a participating product.  

Leaving a Lasting Impression After Purchase

The final step in the location-based mobile marketing experience works to drive ongoing consumer loyalty. It also helps brands introduce new products or heighten interest in existing ones without the need to rely on discounts.

  1. Purchase: At this point, the sale is complete, but the work isn’t. This stage is an excellent opportunity to spur ongoing brand loyalty.
  2. Incentivization: By scanning their receipt, the consumer receives additional points for their purchase. These points are typically much higher than points awarded at the door, or for in-store UPC scanning.
  3. Imprinting: The final incentivization step solidifies the positive brand impression and helps spur spontaneous recollection. When purchasing similar products in the future, the consumer will be much more likely to turn to the brand.

In many retail rewards programs, consumers redeem rewards points for product discounts and other incentives. Shopkick, on the other hand, allows consumers to trade in their kicks for gift cards from various retailers. The rewards provide flexibility for consumers, and greater reach for brands as they aren’t tied to a specific location.

Location-based mobile marketing helps brands connect with consumers at the beginning, middle, and end of their shopping trip, which enhances brand perception on multiple levels. Virtual greetings create a welcoming store atmosphere while product specific rewards guide consumers to certain locations. Finally, purchase rewards ensure the consumer remembers the brand and turns to them in the future.

Shopkick helps our partners reach consumers during their shopping trips and improve sales at brick-and-mortar locations. To use our innovative app to supplement your in-store marketing, contact us.

Image courtesy of Have a Nice Day



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Dima Volovik

EVP of Product and Engineering

Dima Volovik is the EVP of Product and Engineering at Trax Retail — Shopkick.

Dima Volovik is the accomplished product and engineering leader who led teams to deliver innovative and commercially successful e-commerce products, marketplaces, and enterprise solutions for Amazon, Comcast, Fandango, and Universal Music. Before joining Trax, Dima was the Director at Amazon, where he led product development and Engineering for Amazon Appstore and Amazon Prime Video, CTO at Fandango, and Paciolan, head of technology at Golf Channel/Golf Now, and Global VP of Direct to Consumer Technology at Universal Music Group. Dima’s expertise includes developing consumer products, marketplaces, and enterprise solutions.

Dima grew up in Baku, Azerbaijan, where he received his MS in Electrical Engineering from Azerbaijan Oil Academy, and he currently resides in Los Angeles, California, with his family.