geolocation IP, IP geolocation, e-commerce, advantages

Benefits of using geolocation IP in e-commerce

IP geolocation technology can be used to segment your e-commerce audience based on location to provide a better conversion and boost sales.

E-commerce continues to grow despite the debilitating effects of COVID-19 and the lockdown. Amazon sales have gone up by 26% in the first quarter of the year, while buy and pickup orders increased by over 208% in April. Given the significant gains made by the e-commerce industry during the past few months, it makes sense for e-commerce businesses to further their momentum with geolocation IP.

IP geolocation software provides the insight businesses need to provide better service to customers and expand their customer base.

Advantages of using geolocation IP in e-commerce

Segment the customer base 

Geolocation IP plugins provide e-commerce businesses with the means to segment and market their customer base more effectively. E-commerce trends indicate that more and more countries around the world are buying goods and services online, providing an opportunity to segment and cater to each country. For example, a major online retailer that creates website content for a global customer base can now create unique content for each country they serve. For example, a US visitor to an e-commerce website is going to see a different version of the company website then a visitor in the UK. 

Improving conversions with localised content

Having unique content for each customer based on the region is going to improve conversions. According to a Chain Store report, visitors are 6-7 times more likely to convert when they read localised content rather than broad, generic content for a global audience. While 75% of respondents revealed that they would be much more likely to buy from a website with localised content. 

In addition to tapping into people’s familiarity with the language, it also opens up a host of new opportunities for businesses. If there is a festival or holiday celebrated at the national or local level, you can run a promotion for your customers living in that area, increasing sales and building your brand. Geolocation IP software gives e-commerce businesses more opportunities to grow their customer base and expand sales through targeted marketing. The ability to target customers at the regional and local level is the ideal growth strategy, especially for smaller businesses, looking to get a hold off the local market.  

Segment user traffic to reflect customer use

One of the biggest challenges for any e-commerce business is to find reliable tools to break down web traffic to reveal demographic data. Geolocation IP plugins are one of the few tools available to businesses that can track traffic based on location and device. Geotargeting allows e-commerce businesses to segment their customer base, paving the way for more accurate advertisements, product offers and marketing campaigns. For example, you can discover the proportion of visitors using mobile devices and desktop computers. With this level of insight, you can tweak design and content to better reflect how your users actually interact with your website. 

Furthermore, audience segmentation provides accurate, reliable datasets for future marketing efforts. If you happen to be running physical retail stores along with an e-commerce site, then geolocation IP software can close the gap between offline and online data, paving the way for consistent marketing across both digital and physical channels. For example, running an email marketing campaign announcing a discount at a particular location. 

Create a more satisfying user experience

Geolocation IP offers e-commerce businesses the means to be smarter and targeted in their marketing efforts, which is going to improve the user experience and create more satisfied customers. Geolocation IP plugins provide feedback in refining the user experience to maximise value and convenience to users. For example, with geolocation plugins, you can choose between giving users a region selector menu or automatically redirect the user based on their IP. By maximising user convenience in small, intangible ways, you have the best chance of converting visitors and minimising the bounce rate. 

Invest in IP geolocation software

Geolocation IP software offers several benefits in e-commerce that cannot be found anywhere else. You can take advantage of the benefits of geo redirection without a significant amount of work required to implement the technology. With e-commerce expanding significantly, especially in different sectors like B2B, investing in a tool that maximises web traffic segmentation to refine marketing efforts and improve the user experience can be a huge asset for any business. Of course, the customer experience is heavily dependent on marketing and SEO work, but geolocation plugins provide the insight you need to be more targeted and precise in marketing.

15th July 2020
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