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What is the impact of background location check on customer experience? Background location check is required for certain app features and even if those features might be valuable to customers background location check consumes battery. Need research on the impact such features face and customer response to it. Do they turn it off or even uninstall such apps. Also if there is a battery impact what is the acceptable battery impact in terms of % for consumers.
Hello! Thanks for your question about the impact of smartphone background location services on the customer experience. The short answer is that companies and customers both perceive the benefits of location services for the customer experience, however, customers also have serious concerns about security and privacy related to location services, which can compel users to disable background location services. You'll find a deep dive of my research below.
METHODOLOGY
To respond to your request, I searched through industry reports, analyses, surveys, research studies, and other sources to determine the impact of background location services on the customer experience. Based on my findings, I looked at benefits for the customer experience, as well as drawbacks that might cause customers to opt-out of location services.
CUSTOMER EXPERIENCE BENEFITS
One key benefit for customers of background location services is that companies are using these services to tailor the customer experience and provide added-value for the customer. For example, many companies are now incorporating location services into their loyalty programs, giving customers extra points or other benefits for checking-in on Foursquare or other location apps while they're in the place of business. Moreover, companies are using location data to offer customers a more personalized experience, such as by creating customized coupons and other offers for the customer.
Speaking more generally, location-based services that collect data can help companies better understand their customers and the customers' needs, which ultimately leads to better products and services and an improved customer experience. From the company perspective, the number one benefit of location-based services is creating a more captivating experience for customers and increasing customer satisfaction. Other top benefits include building loyalty and communicating more effectively with customers. Clearly, companies feel that location-based services improve the customer experience. When customers also perceive the potential benefits of location-based services, they are more likely to enable them. Nine out of ten smartphone users use location-based services, and they primarily use them when given a compelling reason to do so. Customers are most likely to opt-in to location services when the location data is being used to provide a clear and real value for the customer; for example, customers use location services for weather apps more than any other category of app.
NEGATIVE CUSTOMER IMPACTS
The key reason that customers disable background or app-specific location services is concern over privacy and security. Consumers have a number of concerns related to privacy and security, several of which are explained in this article. They include fear of identity theft, exposure of personal information, being targeted for unwanted marketing solicitations, and surveillance. These concerns are impacting customer behavior; as of 2012, half of teens and 35% of adults reported that they have turned off the location tracking feature on their phone over concerns about privacy or security. As I mentioned above, when customers are concerned over these factors and they don't perceive a real value from the use of location services, they are likely to disable them. For example, many social networking apps will use location services, but they're not essential for the functioning of the app; only 38% of those polled said they shared their location with social networking apps.
During my research, I did not find any hard numbers of how concern over battery life is impacting customer use of location services. That being said, I found significant evidence that using location services does drain the device's battery, both for Android and Apple devices, and that customers are well aware of this. A simple Google search shows that this information is widely available. Moreover, this article and this article both suggest conserving battery life by disabling location services when not using them, closing location-based apps when not using them, or disabling location services for specific apps. There are a number of other articles readily available online that suggest the same solutions. Therefore, the logical conclusion is that customers are disabling location services to conserve battery life, but no hard research has been done on this subject.
CONCLUSION
To wrap up, background location services offer many benefits for the customer experience, but customers also have some significant negative perceptions of location services and will disable them if they don't perceive value. I hope this information is helpful to you! Thanks for using Wonder, and let us know if we can help you with anything else.