How Local Marketing Campaigns Can Eliminate the Amazon Effect

Amazon can personalize the buying experience through its extensive data analysis and make the purchasing process as uncomplicated as possible. This creates pressure for local traders. The ongoing competition with the Internet giants and already experienced sales slumps in local trade are now even called “Amazon effect”.

You want to know more about marketing strategies? On Day Two of Munich Marketing Week, you’ll learn what’s possible with or in spite of the online giants.

As consumers expect to be offered personalized shopping experiences, consumers are increasingly critical of the extensive collection and use of personal information. Therefore, marketers are faced with the question: how can the customer journey be designed as personally as possible based on user data, without putting the consumer at risk and jeopardizing their trust?


Personally, but with the necessary distance

Local data gives campaign executives the opportunity to focus their actions on the interests of the target audience without being intrusive. Residents of particular regions differ in their socio-economic status, their habits and the challenges they face both privately and professionally. These aspects can be used together with local data in an aggregated form for personalization, without being clumsy or distant.

For example, there are regional differences in how many used cars are allowed. Car repair shops can build on this knowledge and advertise offers for their services regionally. The same is true for the weather. After a regionally limited hailstorm, it can be expedient to offer intensified repair services in certain areas. To summarize, marketing executives for a local business who cleverly combine location and demographics with third-party data can leverage one’s strength against e-commerce giants like Amazon.

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The following data is particularly suitable for this:

  • search data: Search queries reports and Google Trends reveal what brands and products consumers are looking for. The search queries also show that voice queries like “OK Google” are becoming increasingly important.
  • Social media data: Most native tools for social media analytics and third-party monitoring tools provide geographic data. They show how individual users in different regions interact with a brand and its content.
  • Web and marketing analytics: Enterprise analytics platforms such as Adobe Analytics and Comscore provide location-based information about how users interact with corporate content and digital advertising.
  • sales data: The aggregated e-commerce and in-store sales data shows how customers’ buying patterns and product preferences differ by region.
  • Customer relationship management (CRM) data: First-party customer data shows in which regions the current customers are located. In combination with third-party data (such as population statistics), under- and overrepresented areas can be identified.

Use data correctly in local marketing

When used correctly, these data offer the opportunity to fundamentally improve the customer journey of potential customers. A first starting point for this can be found in Search Engine Marketing (SEM): Paid Search and Product Listing Ads should be combined with geotargeting. As a result, the advertising can be controlled specifically in areas that have a high demand for the displayed products.

In addition to search engine marketing, the display ads on social media should be tailored to the specifics of local markets. Content that has immediate relevance to the target audience increases engagement and reach. In combination with geofencing and mobile campaigns based on driving time analysis and customer density, the efficiency of marketing measures can be further increased.

SEO: focus on Maps entries and local search results

Search Engine Optimization (SEO) also offers opportunities for online marketing from retailers. Since Google’s Penguin algorithm update at the end of 2016, local search results and map entries in the search results pages have risen higher. Also, the increasing importance of voice-driven search queries with the addition “close to me” shows that local content is becoming more relevant.

With on-page articles, pictures, videos, and tools based on local sales information, more people can be taken to the corporate website and encouraged to buy. However, off-site content can also reach potential customers, such as activating local influencers and multipliers.

It therefore wins who focuses on content that actually creates added value in the respective local markets. By using local data and implementing the proposed measures, retail companies will gain a better understanding of consumer interests. You can create a positive shopping experience – with due distance to the privacy of the customers.

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About the author: Daniel Richter has been Managing Director DACH at DAC Group Deutschland GmbH since 2017 – A digital agency specializing in location-based lead generation based in Munich and Dresden.

Prior to that, Richter founded adxmedia GmbH, which was sold to the DAC Group Toronto in 2016. He has been active in online marketing since 1999, including Enecto AB and TradeDoubler AB.

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