Customer data gives merchants the ability to make their promotions and offers geographically relevant.

The use of smartphones and geolocation technology is giving retailers an entirely new angle for leveraging the geographical data of consumers so that they can provide them with marketing that will be more applicable to their unique wants and needs.

As mobile device penetration continues to increase, the opportunities for merchants are rapidly expanding.

An ever growing number of consumers is carrying smartphones wherever they go, which is providing retailers with geolocation data that has never been available to them at any other moment in history. However, aside from making it easier to actually reach those customers, these devices are also giving a potentially critical piece of information to companies about their customers and potential shoppers: their actual location.

A McKinsey Big Data report identified some of the larger potential benefits of geolocation.

That mobile marketing report indicated that over the next ten years, geolocation data will have the capability to form a massive $100 billion merely in the value that it offers service providers. An MIT Sloan Management Review editor named Renee Boucher Fergunson, who is also a researcher, explained that “geography is making a comeback.”

The latest in geolocation technologies is giving companies the opportunity to obtain vital data about their consumers, no matter where they may be. This, according to the SAP Retail program principal, Colin Haig. The NGDATA CEO, Luc Burgelman, expanded on this concept by saying that the pressure that retailers are currently facing in order to define themselves as unique within the marketplace is leaning increasingly toward methods that are geographically relevant.

That said, as is the case with other forms of data collection, retailers are being cautioned not to cross a certain line with geolocation techniques, and to steer clear of behaviors that could label them as having a Big Brother style agenda. It is important to collect this mobile commerce data, without overstepping boundaries that would lead consumers to feel that their trust has been abused. The result would only be negative as customers take specific actions to protect their information and block a specific company from being able to access it.

Social media marketing offers many new opportunities for businesses

Social media plays an important role in the lives of millions of people around the world. Platforms like Facebook and Twitter have shown that consumers are very interested in keeping in touch with their friends and family online, while also sharing their interests with others and promoting companies they like. Social media offers many opportunities to the marketing sector, especially in terms of mobile marketing. A new report from NM Incite, a social media and market research firm, highlights the opportunities that social media marketing represents.

Report highlights the growth of social media platforms

The report, titled “Social Media Report 2012,” details the ways social media can be used as a communications tool for advertisers. The report highlights the growth of several social media platforms, noting that Facebook remains the most popular platform among consumers and businesses. Blogger and Twitter continue to be rising stars in the social media space, with marketers eyeing Twitter for its potential in social media marketing. Pintrest, a relatively new content sharing website, has seen the most aggressive growth this year, in terms of users.

Consumers showing more interest in mobile devices than in PCs

According to the report, more consumers are making use of their mobile devices to stay connected to social media platforms. The report shows that the amount of time consumers spend on these sites with their mobile device has gone up 21% this year. More consumers are showing favor for their smart phones and tablets than they are for their PCs, presenting an opportunity for advertisers to establish a constant connection with people no matter where they go. Businesses are also responding to this by making themselves more available to social media sites, encouraging consumers to share these sites to their friends and families.

Social media marketing presents its own challenges

The report notes that social media marketing presents several challenges, despite its beneficial prospects. Mobile consumers have shown that they are interested in visits that are marketed to them, but only 14% of these people actually purchased products that they looked up through social media marketing campaigns. Moreover, constant connection with consumers opens businesses up to more scrutiny, increasing the need for comprehensive customer service on a 24-hour cycle.