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Customers in the real world - The story of Things-4-You: reaping the benefits of IP geolocation

As more and more human activity moves online, it is easy to think that geography no longer matters—surely the internet is without borders? Whilst in some cases this is true, more often than not online activity spills over into the real world. This is especially true for online retail, where purchased goods have to be delivered to someone, somewhere. Knowing someone’s real world whereabouts does not just help with deliveries, there are many other benefits for both the customer and retailer. Quocirca’s report examines these from the point of view of a fictional retailer—Things-4-You.
Author/s: Bob Tarzey , Louella Fernandes
Created: 01/10/2009
Filename: Quocirca - geolocation - customers in the real world - November 2009.pdf
Report Commissioned by:
Tags: geolocation   e-commerce  
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For the majority of online activities there is a benefit from knowing where someone actually is in the physical worldThis is especially true for online retail, not just because goods need to be delivered, but also to make a customer’s visit more personal based on the location and, where relevant, linking them with local stores

The one piece of information that is known about every online visitor is the IP address they originated from
Whilst other information can be gleaned, for a first time visitor the IP address is the most useful when combined with information provided by geolocation providers, which can locate individuals down to the state, county or city level
 
IP geolocation enables Things-4-You to personalise the landing page of its web site based on a visitor’s real world location
At the country level this allows for local language and currency to be shown, but it goes much further in allowing events to be promoted to visitors from a particular town or area. A further benefit is to ensure that offers and sales comply with local regulations and sensitivities
 
Things-4-You has also proved that customers were researching online and buying offline (ROBO) and has been able to do something about it
By linking customers with a local store, Things-4-You now offers them discounts for going to buy their goods there rather than at some competitor’s store that sold the same brands
 
Geo-intelligence and better targeted online advertising are further benefits
Knowing the provenance of online queries, Things-4-You can spot geographic buying trends and respond to them in its real-world stores. Keyword advertising is also now better focused by only paying for ads for searchers in particular locations
 
An on-demand offering was selected as the best way of procuring IP geolocation
Using an in-the-cloud service ensures the geolocation information is always up to date and that Things-4-You did not itself have to host a database containing billions of records