Location-Based Marketing Is Growing

Packaged Facts forecasts that restaurant use of these services will "explode" this year.

February 16, 2011

NEW YORK - Social networking sites and smartphone apps are changing the ways consumers interact with restaurants and with their fellow restaurant goers, creating exciting opportunities for foodservice operators and marketers, according to Packaged Facts. Restaurants that create a presence on social media can generate brand awareness, promote upcoming events and limited time offers, engage with the customer base, recruit employees and build brand-loyalty.

"We believe the restaurant industry is in the midst of being shaped by the convergence of the mobile, yet always connected, consumer; location-based and context-aware technological innovation, and mobile payments, which already demonstrate the potential to redefine how to cultivate restaurant guest loyalty, incentivize dining occasions, and better tailor marketing messages," said Don Montuori, publisher of Packaged Facts, in a press release.

Social media outlets Facebook and Twitter in particular are providing fertile opportunities for innovation. As Starbucks and Chipotle Mexican Grill have discovered, Facebook interaction offers tremendous potential for restaurant brands seeking consumer mind share; through well-timed and tailored online incentives, the brand can weave its way into consumers?? lives, according to the report.

And because Facebook users are also frequently on the go, the foodservice industry can use the site to ramp up location-based marketing. Packaged Facts expects such efforts to explode in 2011, as the industry increasingly uses social media to guide patrons to a particular restaurant while they are mobile and deciding where to eat.

Twitter offers restaurants a significant opportunity to reach a younger, more urban, multi-cultural audience, because Twitter usage is particularly popular within the Hispanic, African American, and Asian populations. According to the report, Twitter has proven itself to be critical in attracting followers ?" and patrons ?" to food trucks, an urban-based and exploding segment of the foodservice industry.

Meanwhile, handheld devices and technology are allowing point of sale and in-restaurant tools to evolve and expand. Some of these devices streamline a customer??s visit and maximize efficiency for the restaurant. Introducing such technologies may also reduce the instance of human error in order taking and bill calculations. Mobile phones are already ubiquitous, and Packaged Facts recommends that restaurants stay abreast of quickly emerging ways to tap into the restaurant guest early in the decision making process.

For more on social media marketing, check out the following NACS Magazine articles:

Also, learn more about social media marketing at NACStech, May 16 to 18 in Las Vegas, by attending these two workshops:

Register now for NACStech!

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