Starbucks knows when I go to work. Their app can access my location and purchase history. So when I pass by the nearest coffee shop, it sends me an offer I can’t resist – a cup of Java Chip Frappuccino (600 calories) at 25% off. And while I’m sipping this unholy goodness, here’s how similar strategy can help your business.

The company is using an approach known as geo-push to make highly targeted offers.

It consists of two components:

• A location-based app that tracks users via GPS or cell tower signal; and
• Geo-fences, virtual boundaries around Starbucks coffee shops. Crossing them triggers a specific action in the app, such as sending a promotional notification.

By combining GPS data and users’ purchase history, you can anticipate user desires and power-up your business.

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