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Jonathan Raveh
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Mobile Engagement
Use of Location-based Services in 2019

For digital customer engagement, the advent of the location-based services (LBS) era was a blessing. Today, companies widely call upon LBS triggers to push content to users. The Location Analytics market, upon which LBS are reliant, is expected to reach $16.34B by 2021. If we look back, 2018 was an exciting time for data-driven engagements, fueled by an increasingly positive reaction by users to location sharing. Users consume LBS in the form of push notifications and in-app messages, mainly through services which are location-based by definition (ride hailing, travel guides, etc), and advertisements – though the latter is being curbed by GDPR and privacy restrictions.


How Location Became an Important Personalization Metric

In the past decade, we have seen more and more applications rely heavily on LBS. Most smartphones today don’t need a functioning satellite signal receiver to know where they are, as long as they’re online – with accurate triangulation made possible by constantly-updated WiFi transmitter maps, maintained by the likes of Google and Apple.

Location-based services drive today’s expansive web of mobile interactions, fueled by the ubiquity of personal, always-on, always-connected devices. From the minute we begin our mornings until the moment we go to sleep, we use smartphones and tablets to enhance our lives. And over 60% of app users opt-in to location services on their mobile devices, giving app creators a significant opportunity to reach them via location-based communication.


Companies that use only approximate location to influence their push messages can see open rates increase by 293%. Additionally, using location to personalize push notifications can boost app engagement rates by up to 5X.


Behind these metrics is the ability to provide content that is relevant to the user’s location, and as a result, partially-contextual. Ostensibly, location-based services are the key to understanding users. And so, with better understanding comes higher satisfaction, engagement, and retention — which in turn increases the LTV (lifetime value) of an app’s users.


Location is Only a Means to an End

Location-based services are undoubtedly a step towards better user engagement, improving upon web-only metrics that were the previous standard for content personalization. Yet many companies that acknowledge the significance of location data, still fail to recognize that without context, it’s far from being a holy grail of engagement. Location by itself is not context, and any attempt at context extrapolation based on location alone is risky.

Can context-driven metrics be the answer to low engagement and retention rates? Accurate contextual understanding, formed by knowing who the users are in the real-world and what they do throughout their days, can realize the full potential of LBS. One of Neura’s capabilities is turning user location into contextual, segmented, usable, and effective data. Location-based and context-driven push notifications can lead to higher demonstrable rates of user satisfaction, engagement, retention, and revenue — increasing overall user LTV and helping companies sustain positive long-term relationships with their users.