Marketing plays a critical role in all businesses. Most entrepreneurs use multiple strategies to promote their businesses to generate more sales and profits. Sadly, small businesses and startups are disadvantaged, and many end up closing down due to stiff competition. Location-based marketing is a marketing technique that has since rescued most startups. It’s an effective method of business promotion and comes with numerous gains.

Here are reasons to use location-based marking in your startup business:

1. Customer acquisition

 Location-based business promotions help in reaching out to new clients. This type of marketing is one of the most effective ways to convent foot traffic into loyal clients.

Even clients who have never used your products will be persuaded to try them out by visiting your store. Customers can easily locate your store, products, and services due to services like foursquare. To retain the clients, offer competitive prices and promotions that entice clients to do repeat visits.

2. Low risk & Cost-effective

Location-based marketing is associated with minimal risk and is easy to set up. The process is cost-effective, and you only require promotional costs to run the campaign.

For small businesses and startups, the services are free. For instance, you can use Gowalla and Foursquare, which are free to set up. What a better way of marketing your business?

The location-based promotion also targets specific geographical locations, making it possible to target clients within your area. It attracts more customers to your business and enhances band visibility in your locality.

3. Helps in knowing your clients

This type of marketing aims at attracting new customers. But, it also helps you understand your existing customers, which improves service provision. For instance, reviews by previous clients help you know your customer’s needs and expectations. Customer reviews also inform you about customer experiences at your store, making it easier to make more informed decisions.

4. Rewarding loyal clients

Every entrepreneur will tell you that it’s easier to maintain a client than winning a new one.

Most entrepreneurs use rewards to retain loyal clients, and this works best with location-based marketing. With new walk-in clients each day, it’s easier to spot frequent customers and reward them with gifts or discounts.

5. Increased sales

When customers are within your reach, it becomes much easier to persuade them to buy from you. Once satisfied by your services, they will, in turn, refer others to your business. Customers also shop impulsively hence boosting sales. For example, if you stock umbrellas, you’ll likely get clients during rainy days, which converts to more sales.

6. Effectiveness

Location-based marketing is a proven marketing tactic that has worked for most businesses. Most business owners use coupons, loyalty cards, promotions, discounts to attract more clients. It’s a cost-effective marketing strategy for companies compared to other conventional marketing strategies.


Location-based marketing benefits startup businesses in numerous ways. It’s cost-effective and easier to implement compared to other marketing techniques. To get the most out of this strategy, engage a professional to guide you on the best way to attract and retain clients. Moreover, employ other marketing tactics as your business grows.

By Helper