8 Applications of IP Geolocation

More and more online retailers are leveraging IP geolocation to personalize the store experience based on where the shopper is browsing from. Vendors including Quova and Digital Element provide a wealth of location data including country, state, city, postal code, connection speed, time zone, telephone area codes, TV regions and much more. In this blog post we’ll explore some of the ways retailers are leveraging geolocation data to optimize the shopping experience.

Global navigation

Many multinational retailers and manufacturers like Trekbikes.com often place a nasty country selector landing page in front of their store. First of all, this upsets the search spiders from gaining entry into your site and secondly, creates an unnecessary barrier to entry for the customer. Using geolocation data you can direct the customer to the correct store based on country they are browsing from. For multi lingual sites countries like Canada and Switzerland, you can automatically set the language of the store based on their browser language.

If you do this, remember to always allow the shopper to change their country and language manually in the header or footer of your site.

Even if you don’t automatically redirect shoppers to the right geographic store, you can still prompt them to the right store. Visitors to amazon.com get presented with a redirection link when they visit from regions where Amazon have a store presence like Canada and the UK.

Offer & product localization

Travel retailers can use geolocation to present geographically relevant offers. For example, Continental Airlines present promotional offers that target shoppers based on their closest airport, hence visitors browsing from New York will see special offers from Newark airport.

Outdoor retailers might promote winter sports products to shoppers in Northeast US whilst promoting summer sports products to those lucky enough to be shopping from Florida and Southwest.

Experience optimization

Geolocation service providers can also provide data on the shopper’s internet connection. This allows you to know if the shopper is browsing via dial up, cable, DSL, T1 etc and also if the user is connecting via a mobile gateway (3G). Accordingly you can optimize both the site experience and content to ensure that your store is optimized based on connection type. Users connecting via a mobile gateway can be redirected to your mobile optimized store, whilst users on slower connections can be presented with low resolution graphics instead of rotating flash banners.

Multi Channel

Forrester research projects that by 2012 approximately one third of all retail sales will be influenced by the Web. Geolocation data can improve the online experience for those online shoppers who are researching an offline purchase. For years multichannel retailers like Sears have provided store finders, in store inventory lookup tools and pick up in store capabilities. All of these tools require the shopper to enter their zip code or city and select the store or stores closest to them.

With geolocation this step is simply unnecessary. You already know down to zip code level where the shopper is browsing from, so you can automatically select the closest store or store for pick up in store, in store availability and store locators.

This simplifies the user experience for the customer and removes the need for zip / city field inputs and location finder pop-ups. In the minority of cases the IP address the shopper is shopping from will differ in location to pick up location they are interested in. You can handle these cases with a simple ‘check another store’ hyperlink and remembering the customers preferred store in their cookie for their next visit.

Checkout optimization

During the checkout process new customers are forced to enter a wealth of personal data including shipping and billing addresses. Geolocation data can be used to pre-populate fields like country, state/province and city, reducing the number of fields the customer has to manually complete. A simple ‘not shipping to xxxxxxx’ link clears the pre-populated fields when the shopper is shipping to a different city from where they are browsing from.

Shipping & tax estimators can also benefit from geolocation data, allowing you to automatically present estimated shipping and taxes without the need to enter a zip code. Again the shopper should be able to change the zip code if they are shipping to a different city from where they are browsing.

Fraud

During order processing you can use geolocation data to compare the location of the shopper’s IP address to their provided credit card billing address and shipping address. If there is a mismatch between the two (shopper is in Russia but using a UK credit card address) then you can flag the order for manual review. This reduces your risk to fraud and reduces costly credit card charge backs.

Enforcing digital content and territory rights

Contractual and publishing rights often mean that digital and media content can only be distributed within certain geographic boundaries. Popular subscription music sites like Pandora and Spotify restrict access to their sites to users from the countries they are able to distribute in.

The BBC prevents access to their online iPlayer to viewers outside the UK in order to protect the commercial rights of their pay per view channels in the US, Canada, Japan etc.

Enforcing distribution rights

Many manufacturers enforce shipping restrictions between markets to protect distribution rights. For example Backcountry.com have a warning message in their checkout that advises customers that orders for certain brands will be canceled if they are shipped outside the US.

Using geolocation retailers have two alternative tools at their disposal to deal with cross boarder shipping restrictions.

a) They can hide these products from the shopper, i.e. a Canadian shopper will not see products that cannot be shipped to Canada
b) They can display shipping restriction information on the product results and product pages for Canadian customers, thus setting availability expectations prior to entering the checkout process.

This post was written by Elastic Path product manager Peter Sheldon.

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15 Responses to “8 Applications of IP Geolocation”

  1. Very nice collection of uses for Geolocation. It’s important to know the accuracy of the source providing your store with Geo IP related data. If this data is not continually updated and verified, it can lead to false tagging of customers which can cause problems with checkout, fraud lookups, etc…

    Another source of GeoIP data is maxmind.com. They offer some free tools as well for the budget minded ecommerce site. The data is usually quite accurate, but changes happen quickly in IP space allocation.

    Rob – LexiConn

  2. Another great example of this is Amazon.com.
    If you use e.g. a foreign credit card (e.g Danish) they will automatically give you an invoice, show cart order total, and charge you credit card, in the corresponding currency (e.g. “Danish krone”).

  3. [...] View original post here:  8 Applications of IP Geolocation | Get Elastic [...]

  4. Peter — A great roundup of practical geolocation applications. And as you know, this stuff really works in practice. I’ve seen some impressive improvement in conversion rate when we implement location-based campaigns for our clients.

    One application to add to the list is customer/competitor correlation. Knowing where an online shopper is located relative to a competitor’s brick and mortar store can be very useful when determining appropriate incentives, such as a discount, that may be used to close a sale.

    Thanks again for a great post.

    Stephen Cobb — Monetate

  5. Presently, we ship to 67 countries around the world.

    Question is…..
    Does anyone have any test data to show if displaying a banner like ‘We ship to Canada’ for an example, actually lifts conversion?

    Other wise what is the point of doing it?

    I would love to hear feedback on this….

  6. simon says:

    Nice article, we use geo location, but have not implemented all of your suggestions. Thank you

  7. David Minor says:

    Excellent point about catching fraud. Piggy-backing on Rob’s comment, we use Maxmind’s paid fraud scoring service, and shipping/billing address and IP location mismatch are a big part of the score. I highly recommend it.

  8. Fabien says:

    This article is interesting, but one major point is missing according to me: how do you manage geolocalisation when users are connected to the web via a proxy ? We can only get the IP address of the proxy and not the “real” user IP. For instance, if several subsidiaries are behind the same proxy, it’s quite impossible to define precisely the user’s location, and it’s a problem, especially when we talk about rights on visuals.

  9. Dennis Newel says:

    Audio Bible, I can’t point you to any numbers but I would say the reason for showing “we’re shipping to…” is peace of mind. I’ve visited many US based web sites where it’s been a pain to figure out if it’s possible to have an order shipped outside of the US. Seeing a note of “We’re shipping to…” could prevent me from dismissing the site before even considering to buy.

  10. Dennis Newel says:

    Fabien, nothing is perfect and neither is GeoIP. As you point out we’re relying on knowing where a given IP is physically based, but as it’s not a physical thing it could easily move around, be faked or masked. This is why it’s important to always give the customer the option of changing location/country/language etc.

    That’s why I’m not not to keen on the IP restrictions used to limit access – what if you’re forced to be behind a proxy that’s not recognized as being located in the required territory? Problem is that there aren’t that many other options available to limit access to e.g. BBC content to people living in the UK.

  11. @Audio Bible, definitely it increases conversion. Even if you are a Canadian retailer, with a .ca domain, and you emphasize you ship to Canada from Canada (minimize border problems, lower cost etc) it can have a dramatic increase on conversion. Just ask Jason Billingsley, it’s one of the tips he presented at Shop.org this year.

    As a Canadian shopper, I often open 5 or 6 tabs from search engine results and start eliminating the sites that don’t ship to Canada. Sites like Overstock and Amazon that do ship up here get my sales and future loyalty.

    Here’s a related blog post we did on the topic last year… http://www.getelastic.com/everyjewelrybox-experienc/

    @Fabien, regarding proxies – yes, that’s a hiccup. But most internet technology does have a hiccup – customers clearing cookies, for example, will mess up your targeted selling as will missing analytics tags, sampled analytics reports, paid search attribution over multiple keywords/campaigns, multichannel conversion attribution, images off in email clients screws up open rate tracking etc.

    I would imagine use of proxies is marginal. Does anyone have any data on this?

  12. Excellent summary.

    One minor issue from this side of the Atlantic with regard to the BBC. Yes, they do sell stuff on pay-per-view, but the IP issue is because folk in the UK get ‘free’ online-BBC access because we already pay an annual licence fee [it's how the BBC get its primary income]- if you don’t have a UK-based IP, you don’t get it for free.

  13. Another question, say we get the Geo location from a person on the website. What if we then sort product reviews and have a link saying people like you from Texas have these comments about our products…. or even…. people from Dallas Texas have left these comments…

    Would this be to strange for the average user?

    • Interesting idea, worth testing but my gut says it won’t have much impact on product decision but may influence the decision to purchase from your site if the review concerns your customer service (fast shipping, for example).

  14. [...] 3. Geolocation tools are not free, but they can prevent your domestic visitors from seeing international calls to action, and serve targeted content to the right ones. Not to mention, the host of other benefits of geolocation. [...]

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