Geofencing marketing is a sort of location-based marketing in which you can communicate with smartphone users in a certain geographic region, such as a store, using mobile apps or mobile webpages. It’s also known as geofencing advertising.
It makes use of a variety of technologies, including Wi-Fi, GPS, radio-frequency identification (RFID), and Bluetooth. Historically, this was done using SMS marketing, but as technology has advanced, this process has expanded to include push notifications and even fits easily into the programmatic advertising stack.
Geofencing marketing is used by businesses of all sizes and specialities. While it is a terrific tool for businesses with physical locations, it is equally beneficial for enterprises that operate online.
Geofencing marketing allows you to reach out to your target audience in new and interesting ways. It can also assist you in increasing your profits to unprecedented heights. This is due to the fact that it advertises to consumers based on their location, which may be as precise as 1000 square feet.
Benefits of Geofence marketing
1. Boost customer loyalty
Geofencing marketing might assist your firm in increasing customer loyalty. That is, without always offering specials or discounts.
Did you know? It costs 10 times more to acquire a new customer than it does to keep an existing one. That is why, in today’s market, cultivating shopper loyalty is vital.
Is it achievable? Why not? Imagine. You shared a non-spammy, relevant promotion. Then you delivered an outstanding customer experience and product. Then there’s word-of-mouth. Users will remember and talk about what your firm accomplished better than anyone.
2. Improves data and analytics
Geofencing marketing is based on data. This provides actionable information to your marketing team or marketing provider for your next campaign. Geofencing also gives real-time data to your team.
It acts as a link between advertisement and action. You can see when the advertisement was seen and what the consumer did next.
Thus, another advantage of geofencing marketing is the ability to change your campaigns on the go. If you discover that users aren’t responding to your promotions, for example, you can look into what’s wrong with your campaign.
3. Increase user engagement
You can enhance your campaigns and increase user engagement rates based on the data you collect. In a nutshell, you’re refining your audience in order to achieve greater outcomes. You’re also learning which calls-to-action (CTAs) and ad copy work best for your target audience.
Following the execution of your geofenced advertising, you will be able to assess the response rate as well as the number of leads generated. With your new data, you may fine-tune your advertising even more in order to increase the engagement of your target demographic.
4. Spending effectiveness
Leads of higher quality result in more effective marketing budgets. You may reach out to the audience that is most likely to convert by using geofencing. This means that less money is spent on clients who aren’t as important.
How does it work?
While geofencing marketing may appear sophisticated on the surface, it is actually rather simple. Geofencing comprises primarily of the following steps:
1. Determine a geographical radius around a physical location.
2. Configure a geofence (virtual barrier) around the site.
3. An event can be triggered when a device enters or quits the system.
Remember that you can put your fence practically anywhere.
You can build one around your company’s location as well as your competitor’s. For example, if you set up a geofence near your competitor’s location, you might run an ad inviting couples to your venue for complimentary food samples. You may even set up a geofence near the offices of organisations that frequently send clients to you. Other target places could be events or trade shows, households via addressable geofencing, colleges or nearby streets and stores.
Your geofencing advertising could include a promotion, such as a discount on your booking rates or an invitation to visit your location. The greatest benefit of geofencing marketing is that you can control when your advertisements show.
Points to keep in mind to build a strong Geofencing strategy
How can you use geofencing marketing to benefit your company? By keeping the following geofencing solutions strategies in mind.
1. Investigate your audience
Geofencing marketing relies heavily on your target audience.
You can establish a target area that will generate results if you understand who your audience is and what they desire. Furthermore, you can create ads that will attract shoppers and persuade them to make a purchase.
Look at the data you already have if you’re unsure of who your target audience is or if you’re redefining your target audience.
2. Make your geofence the appropriate size
The fundamental guideline of geofencing advertising is that your targeted area, or fenced-in area, is no more than a four-to-five minute walk from your store. In some circumstances, you may be able to reduce this to a four- or five-minute journey.
Companies can sometimes be overly ambitious. This can result in huge geofences that do not drive results. That is why you should design perimeters that are tiny, compact, and effective. Remember that you want to make it easy for users to visit you.
Conversion zones may not be an issue for your firm in some situations. This is appropriate for e-commerce stores or businesses that are mostly conducted online.
3. Have a strong call-to-action
You want to make certain in your material that:
1. You include an obvious call to action.
2. Your call to action must be actionable right away.
It’s also important to create ads that aren’t spammy or self-serving. Make sure you’re naturally leading them through the buying funnel.
4. Examine your data on a regular basis
By evaluating your data on a regular basis, you can improve the success of your geofencing marketing campaign. If analytics is new to you, you can always collaborate with a geofencing marketing company.
5. Use optimal targeting techniques
For the best results, integrate geofencing marketing with additional targeted tactics. Among the various types of targeting are:
1. Contextual targeting: Displays an ad that is relevant to the page’s content.
2. Content targeting: Targets search keywords as well as the intent of those keywords.
3. Retargeting: Displays an ad to people who have previously visited a product on your website.
4. Dayparting: Targeting consumers at specific periods of the day. Ad scheduling is another term for it.
Despite significant privacy concerns, the geofencing sector is predicted to grow by more than 27 per cent by the end of 2022. Learn about the success of famous organisations using geofencing, such as Taco Bell, Elle Magazine, and BMW.
Geofencing, when done effectively, may greatly enhance brand awareness and sales for your company.
Get in touch with us at Shaktiki Marketing to learn more about the most effective marketing strategy for your business.