Will They or Won’t They?

Opt-in to your location-based service that is. I’m talking about your customers. The #1 rule in our industry is that you need permission to locate a mobile device. Permission, often called opt-in, can be obtained in multiple ways, from a user tap on a device to replying Y to an SMS request to signing a contract or agreeing to utilize a service.  As long as the location use is clearly explained and well understood.

opt in or out

Despite the widespread coverage of privacy concerns in the media, most mobile users are comfortable using mobile services that actively tap their location.  Most people do opt-in, most people allow apps to “use your current location.”  Location makes the app or service work better, improves results and value, and makes life easier for many of us.

So long as location is not abused.

Over 60% of the participants of the Alliance Data Geofence pilot told us that they were not concerned with security, privacy, or communicating with a retailer via mobile and 68% indicated that they will likely sign up for future location-based SMS campaigns. Those numbers are high because the campaign was relevant and the frequency of the alerts was just right according to 80% of the participants.

Make sure the use case for location is relevant and well-timed and the majority of your customers will opt-in with zero concerns. Take for example the use case of location for fraud prevention in the financial industry.

Banks can use the location of your mobile phone as an additional layer of verification in tracking fraudulent activity. If your mobile phone is in the same location as the one the transaction is initiated in, it’s most likely legitimate. However, if your mobile phone is in San Francisco and the credit card is being run in New Jersey, there’s a good chance that it's an illegitimate transaction. Your bank can then plug that data into an algorithm to determine if a fraudulent activity flag is necessary. And that means there’s less chance of your card being blocked and your credit rating being affected.

That’s relevant. And the people I speak with would not only opt-in to the service if their bank offered it but ask me why their bank hasn't adopted it yet!

Would you opt-in to a location-based service if it added value to your end-user experience?