Wednesday 30 June 2010

Location Based Services


By Steve Beecroft,

What is LBS – from Wikipedia

A location-based services (LBS) is an information and entertainment service, accessible with mobile devices through the mobile network and utilising the ability to make use of the geographical position of the mobile device.

Location Based Service can be used in a variety of contexts, such as health, work, personal life, etc. LBS services include services to identify a location of a person or object, such as discovering the nearest banking cash machine or the whereabouts of a friend or employee. LBS services include parcel tracking and vehicle tracking services. LBS can include mobile commerce when taking the form of Discount coupons, vouchers or advertising directed at customers based on their current location. They include personalised weather services and even location-based games. They are an example of telecommunication convergence.


Examples of LBS we use today

Location based information

One example would be someone using their Wireless Application Protocol (WAP) enabled mobile phone to search for a local service of retailer. Flook is one such service provider, you simply select the service you wish to search for pres go and you are presented with all the matches in your locality.

Global Positioning Service (GPS) can be found in over 12 million vehicles in the UK and almost half of them regularly subscribe to traffic news. Enabling their GPS device to accept updates of traffic delays and re-plan the fastest / shortest route based on those updates.

Location based billing

Billing is also a big application for Location Based Services if you have ever travelled abroad and uses your mobile phone to call home or worse surfed the web, then you will know firsthand how LBS can provide variable tariffs based on your location.

Emergency services

Mobile operators are regularly asked by the emergency services to assist them locate the location of a mobile phone at the time a call was made. Even when the phone is switched off it is possible to locate is whereabouts, how many times have you left you phone on silent and then misplaced it? Sadly this is not a service that is available to you or I so next time just call MI5.

Tracking

Fleet applications typically entail tracking vehicles for purposes of the owning company knowing the whereabouts of the vehicle and/or operator. Every security van in the UK has a location device on board. In fact some insurance companies insist on one being fitted to a precious marquee before they will even consider insuring the vehicle.


But how can LBS Loyalty / Discount help your business?

An LBS voucher scheme is more effective as it enables you to make offers to prospective customers that are in your location real time. Customers that you have not yet traded with and whose details you don’t have. Then if and when they come to transact with you not only do you have increased revenue but you also have the details of a new customer, providing you capture their details as part of the sales process or perhaps you own loyalty scheme, and thus a new customer to market to.

The best part is that the first transaction that the new customer does with you is part of an offer which creates a feeling of good value. Existing customers see that you are embracing technology and making it easier for them to save money with you.

  • Increases revenue

  • Builds your customer database

  • Greater loyalty from existing customers

  • Is outsourced service so enable you to concentrate on running your business

  • Helps you control stock better

  • Provides richer experience for the customer

  • Saves the customer money

  • Most such services are free for the customer to register


Why should I consider LBS Loyalty / Discount?

Customers with iPhones, Andriod and regular WAP enabled mobile phones are all capable of joining such a scheme. That’s covers about 70% of the UK’s population. The service providers are there with Flook, Vooch, My Vouchers and even the credit card transaction processors are moving in this direction. In 2011 we will see this service being offered to selected Visa and MasterCard customers and American Express is due to follow early 2012.

However the smaller local retailers that adopt early will be the real winners especially during a recession when we all like to think we are getting good value.

Digital marketing research firm InsightExpress found that mobile ad campaign norms were four-and-a-half to five times more effective than online norms. Read the full report Click Here

Joining these schemes is relatively inexpensive, does not take too much time and moreover you don’t have to be a former NASA scientist to understand how it all works. So My advice to all local, national regional and global businesses is take a look and run a little pilot to see the benefits for your business.


About the Author – A regular commentator and conference speaker Steve is widely regarded as a trusted advisor on Payment, Pre-payment and Multi-application Smartcards to a range of clients in the Financial Services, Multi-purpose / Sports Venues and Tourism industries. He also works closely with Central Government and Local Authorities. He has been described as a world authority one emerging smart technologies.

Steve recently completed an assignment with Visa Europe where he delivered the Service Model (Operational Scheme Design) for a Loyalty Programme. He sees Location Based Services as one of the more effective marketing channels for retailers and businesses alike.

For more information on LBS and how Consulting Smart Ltd an help your business email info@consultingsmart.co.uk

Consulting Smart Ltd provide specialist consultancy on the design and deployment of smart card and NFC technologies. For more information on how we can help your organisation realise the full benefits please see www.consultingsmart.co.uk or email us at info@consultingsmart.co.uk

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