Today the information and communication technologies are growing by leaps and bounds. And with the changing technology the models of business and its embedded strategies are also shifting. With the advent of “mobile commerce” enabled by tablets and smart phones, the proliferation of such devices has diverse impacts on various dimensions of IT, business practices and consumer behaviour. The reach of mobile commerce has penetrated to a large extent that information is available to the users at their fingertips. The mobile phones are no more considered as future technology, it is in fact very much utilized in present context.
The mantra for servicing the needs of today’s generation of customer is ubiquity. The customers need your offering and you need to reach out to them when they need it, where they need it and in the form they need it. This is where Location Based Services (popularly called LBS in short) are typically changing the nature of the game.
Location Based Services are typically information intermediary that creates value by providing services, accessible with mobile devices like smart phones, web-enabled phones, PDAs, Notepads and Palmtops through the services of a telecom network provider. Typically these services utilize the ability to make use of the geographical position of the mobile device. These services have majorly affected the growth of Mobile Commerce.
For example, you are moving through a prime location within a major city. You suddenly need “servicing for your hungry stomach” and need to find a restaurant. Also you are tired. With Location Based Services enabled on your mobile device, you can be guided to the closest place at the time of your need to the junction that can service your needs in the best possible way. It may be a Gas Station with a proper food joint. Thus you may be also cross-sold products or services while you are servicing your own need.
This is why LBS have a very high potential for cross-selling and upselling new services and lower cost of customer acquisition. Intimation of location specific services may be offered to potential customers, and conversion of leads to sales may be extremely high, in certain services. These LBS are further driven by Business Analytics at the background and thus can provide customised insight based on the actual need of a customer. This enhances chances of actual conversion of interest.
Further, even if the actual conversion of a potential customer does not happen, information regarding services which are delivered over telephony networks and mobile channels using Location Based Services have a much higher recall and offering awareness, which create tremendous network value through the cascading reach into a a person’s social network. Imagine, you friend knowing about a service when he or she is with you on a trip. He or she may call you and advise you on using a service when you are travelling. You are likely to accept such tips, rather than ask a stranger. This is again where indirectly Location Based Services create value for firms.