Geolocation: understand what it is and why it is important for e-commerce

Geolocation is a technology that allows identifying the geographic location of an electronic device through signals such as GPS, radio frequency, AGPS or wifi. In this way, it is possible to find or recognize the place where people or objects are positioned.


 

If you use Google Analytics to analyze the performance of your e-commerce, you have access to data generated through geolocation, as Google collects information from geographic position users through this technology.   

Maybe you make use of this feature in paid media campaigns and you can also use it within your online store. 

But if you haven't used it yet, don't worry. The purpose of this text is precisely to explain in more detail what geolocation is, how to use it in e-commerce and what are the main benefits. Check out!

What is geolocation?

Geolocation is a tech allowing identify the geographic location of an electronic device. In this way, it is possible to find or recognize the place where people or objects are situated.

This is possible through geolocation systems and coordinates obtained through signals such as GPS, radiofrequency, AGPS or wifi. 

Furthermore, so that the systems obtain this information, it is common to ask users for permission to access it. 

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    Why use geolocation in e-commerce?

    As with everything that involves data, one of the biggest reasons to use geolocation in e-commerce is the possibility to customize the user experience. And this today is a key piece for any business, but especially for digital.  

    According to the report Next in Personalization 2021, 71% of consumers expect personalized experiences and 76% are dissatisfied when they don't happen. 

    And when we talk about personalization in relation to geographic position, we see that consumers have to 6 to 7 times more likely to make a purchase when they are impacted by an offer close to their location, according to a survey conducted by Chain Store.

    Want to delve deeper into the subject? Read too: Personalization: what is it and why is it important for e-commerce.

    How to use geolocation data in e-commerce?

    There are several ways to use geolocation data in e-commerce. You can choose one of the options or you can use them together. Check out some possibilities below.

    • Google Analytics
    • Social Media 
    • geolocation system
    • Search system with geolocation

    Google Analytics

    To use geolocation data in favor of your e-commerce, one of the main ways is through Google Analytics (GA). 

    As already mentioned, this hardware collects as much information as possible about users browsing a website, including geographic location. For that, just configure it and integrate it to your virtual store.  

    With this information, it becomes easier get to know your persona(s) and carry out more targeted and assertive campaigns in the Google Ads.

    Social Media 

    Like Google, many social networks also collect the geolocation of users. In addition, it is possible to integrate GA with Facebook and Instagram Ads. Thus, it is possible to segment and customize campaigns, increasing the chances of conversion.  

    Compare your e-commerce conversion rate with that of other online stores!

    geolocation system

    Another option to use location data in favor of your business is to use a geolocation system with artificial intelligence specific to this within your website.

    Search system with geolocation

    Another possibility to use geolocation in e-commerce is to bet on a search system with that feature. This is particularly advantageous for marketplaces and virtual stores that work with dropshipping and/or with multiple suppliers. 

    With this technology, it is possible to focus investments and efforts on reaching people who are closest, to make deliveries with more speed and even offer free shipping or more into account. In addition, it is possible to target ads for each product to the people who are closest.

    And for anyone working with decentralized storage, it also helps organize the stock more efficiently and keep the supply up to date.

    Some systems of smart search, such as Magazine Luiza, make use of this technology and, thus, are able to show items closer to each consumer. 

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      Benefits of geolocation for online stores

      Discover below the main benefits of geolocation for virtual stores.

      1) Know your customer 

      2) Bet on more targeted campaigns

      3) Increase website traffic

      4) Increase conversions

      5) Have an easier time with the stock 

      6) Get more prominence in marketplaces

      7) Invest in multichannel

      8) Facilitate reverse logistics

      1) Know your customer 

      When you have access to the geographic location of your customers and potential customers, it is very easy to get to know them. Thus, it is possible to understand where they are situated, types of needs and desires they may have, among other things.

      2) Bet on more targeted campaigns

      Based on your knowledge of your customer and also their location, you will have many more opportunities to create targeted and personalized campaigns. 

      Read also: How to apply customer centricity in your business and achieve better results?

      3) Increase website traffic

      When you do well-targeted campaigns, the chances of attracting the customer are much greater, as you can reach their real interest.

      4) Increase conversions

      Ultimately, increasing sales conversions That's what matters most, right? At this point, geolocation is also a strong ally, because offering products closer to the customer results in faster delivery and cheaper shipping. And these are two of the main elements that influence the decision-making end. 

      5) Have an easier time with the stock 

      Geolocation in e-commerce also facilitates stock organization for shopkeepers who maintain decentralized storage, making the process of much more efficient logistics

      That's because when you know what kinds of products leave more in each region, you can ship them to the nearest warehouses and distribution centers. In addition to being advantageous for the customer in terms of freight and speed, it also generates savings with carriers.

      Read also: Product catalog: how to create yours and make it more attractive.

      6) Get more prominence in marketplaces

      When you choose to also sell your products on marketplaces that use a geolocated search, as is the case with Magalu, manage to stand out and sell more to the customers who are closer.

      Understand the importance of a marketplace hub for your business.

      7) Invest in multichannel

      If you work with virtual and physical stores, geolocation technology also allows you to invest in multichannel, or omnichannel. Because, by knowing where the consumer is located, it is possible to make the click and collect. That is, he makes the purchase by Internet and you can pick it up at the nearest store. 

      In addition to generating a good experience, your salespeople can narrow the relationship with the brand and take advantage of the visit to try to sell something else, increasing the average ticket.

      8) Facilitate reverse logistics

      Another very important benefit of geolocation is the ease of product exchange or return. After all, if you sold to the person closest to you, when you made the logistics reverse will also have lower shipping costs and faster problem resolution.

      Conclusion

      Using geolocation is a strategy that can make all the difference in your e-commerce, because, with it, you can segment actions and personalize the consumer experience. And, consequently, optimize the chances of conversion! 

      If your goal is to optimize your online store's sales conversion through experience, SmartHint can help you with that. Discover our technology!

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      Tânia d'Arc

      Tânia d'Arc

      Graduated in letters and post-graduated in digital media, she is passionate about words, communication and details.
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