More apps are leveraging user location data to create customized mobile experiences for consumers. One of these is TikTok, and in January 2026 the popular social media app informed its users that it may collect real-time location information from their devices. In a statement, TikTok said that their new ‘Local’ tab leads to content related to nearby restaurants, events, and retail stores, among others. Some TikTok users have expressed their concerns over this feature since it represents a significant intrusion into their privacy, but the app said that they have the option to turn it off if they wish to do so. “This approach is consistent with how many modern apps use location today and gives people the choice to enable it when they want more relevant, local experiences, while keeping them in control,” TikTok explains.
Location-based apps can close the divide between digital engagement and physical visits, and it’s why so many businesses are now collaborating with app developers to grow their brand. Here’s how location-based apps drive sales in the real world.
Venue-Driven Sales Through Geofencing
Some startups and small businesses rely on pop-up shops since these offer a low-risk way to build buzz, test markets, and have face to face interactions with customers. However, pop-up sales are dependent on foot traffic, location, and the specific time of the event, so there’s always the risk of people failing to find the stall, or missing the pop-up sale completely. To help customers find the temporary shop setup, business owners should consider using location data to set up a geofence, which is a virtual GPS-based perimeter around a location. This will trigger alerts or marketing messages when a smartphone is near the pop-up stand.
For instance, let’s say you’re running an independent music label and you want to market a new artist to a specific audience. You can use apps like Stanly or Decibel FM, both designed by New York app founder Zibo Gao, to share songs and start conversations with people. You can also use the apps to promote concerts or indie festivals where your artist will be featured, then create a pop-up stall somewhere in the venue. Set up a geofence around the pop-up to notify attendees or concert goers to buy your artist’s CDs, vinyls, and limited edition merch. You can also use this feature to give fans access to exclusive content, so anyone who’s near the geofence can access links to samples or behind-the-scenes of music video shoots.
Personalized, Immediate Offers
Announcing a sale or discount is one of the easiest ways to entice customers to set foot in a shop or store. Using your social media accounts is a practical way to share details of your sales events in advance, but if you want to make real time offers to people nearby, use location data. Your app can send immediate offers or alerts when a customer is near your store, which can increase the likelihood of a sale.
This is the perfect strategy for businesses that sell perishable goods like fresh deli salads or deli meats, or a business that needs to handle their excess inventory. For example, if you’re running a bakery, you can send a digital coupon to customers within a two-block radius, and anyone who redeems the coupon between 7 to 9PM is entitled to a 30 to 50 percent discount on baked goods. Doing so allows you to manage surplus and reduce waste, so integrate a location feature within your existing app, or buy ready-made solutions to take the guesswork out of building a location-based app.
Improve Customer Service
Many retail stores are using location-based technology to improve customer service and enhance their in-store experience. The North Face sends personalized recommendations to shoppers when they’re in the store, while Walmart uses geofencing to notify employees when a shopper is about to arrive for curbside pickup. Pharmacies like CVS and Walgreens are also utilizing location data to offer location-based deals on medication and retail items.
If you just opened your physical store, consider using location data to help shoppers navigate your shop by integrating Indoor Positioning Systems (IPS) within the premises, which can guide people to specific products. This involves installing battery-powered beacons in the store that works with your app. Once the beacons detect a customer’s location within the shop, the beacons will provide directions to the shelf or aisle where the product is placed. This system not only helps shoppers to save time while they’re in the store, but it also allows you to track your inventory and see if items are being moved to another shelf, taken to the cashier, or stolen.
Location data is revolutionizing the buying experience in stores worldwide. Use location-based apps to improve customer experience and inform people of sales events and pop-ups, and see how this next-level technology can help to increase foot traffic and sales in your shop.
