Location-based information points the way to mobile customer interactions

Date: March 23, 2010
Pages: 20
US$ 1,495.00
Publisher: Ovum
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: L025EAA7498EN

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Location-based information points the way to mobile customer interactions
Through services such as OnStar and local search sites such as Yelp, Citysearch, Qype and Tipped, consumers have begun to acclimatize to the idea that applications can add value by using location information drawn from a GPS device or a mobile phone. But the majority of those applications only provide information, triggered by a specific customer request.

Application developers and communications vendors have now set their sights on expanding location-driven applications into the realm of customer interactions. This new breed of application attempts to enhance the customer interaction experience by weaving location data into the workflow and the decision-making processes of the application. Location then becomes an integral part of customer interaction. To pre-empt the inevitable consumer concerns about privacy, vendors creating these new applications must create explicit opt-in mechanisms, giving users a clear picture of what the location information will (and what it will never) be used for.
Executive summary
In a nutshell
Ovum view
Market opportunity
Location-based services draw consumer interest
Location-based information for customer interaction
Getting comfortable with location-based information
Aggregating location information
Aggregation becomes a necessary condition for customer interaction applications
The benefits of aggregation
Geographic differences in demand
Vertical market view
Few horizontal applications
Retail knows what you want
Customer tracking in the store
Finding social help
Public sector gets the call
Travel and hospitality: concierges that follow you
Local search based on location
Healthcare: personal health records inform critical care
Location used to save lives
RFID tracking in hospitals
Communications requires no aggregation
Barriers to adoption
Consumers must be well-informed
Strategic recommendations
Focus early and often on privacy
Location-based service


Table 1: Vertical location-based applications


Figure 1: Local search application using only location for decision-making
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