Are you wondering about what is geofencing and how geofence marketing can help your business? After the introduction of the internet in the world, the world became a global village and then social media invented and it made the people more connected.
You can interact with any of your friends, living anywhere in the world. The technological advancements made the impossible into possible. Technology has also changed the world of marketing, both online and offline. Now, the world has entered into a new world of geofencing and geotargeting.
What is Geofencing?
Geofencing is a marketing strategy in which there is a setup of GPS-coordinated and radio-frequency enabled devices. The map is set according to your business area and whenever some user enters the particular area, its location can be detected through the use of geofencing. This data is used for the purpose of effective marketing campaigns. It is actually a location-based marketing strategy that is used by businesses to increase the engagement of their audience.
It is actually a desktop and mobile marketing strategy that provides the local and multi-channel businesses with the opportunity to interact via mobile devices with potential clients and customers who are nearby and more than likely, ready to buy, before they even walk through the door. Geofencing provides the business with two main things, time and the location. These two things are very much important for the businesses to be successful. When you deliver the right message at the right time to the right customers then there are very much chances that they will buy from you and you will be successful in increasing the revenue of your business.
How Geofencing marketing work?
The successful geofencing marketing is able to create meaningful interactions between the business and customers or potential customers. Businesses can capitalize on this mobile marketing strategy by combining technology with customer targeting, along with a unique, personalized message.
Geofencing begins with technology. This form of marketing uses technologies such as GPS, beacons, or even IP addresses to build a fence. When someone has an app related to business in your mobile device or key in search terms then enters a specified area, they will be able to receive special ads, notifications, or messages.
Because of the highly localized and hyper-targeted audience, the geofencing strategy produces fewer, but much more qualified leads. This leads to higher quality clicks and a better ROI (return on investment) and ROAS (return on ad spend).
The strategy relies on meeting your customer’s needs right where they are. This relies on you really understanding your customer base and harnessing the power of “near me” searches. Search analytics and demographics play a critical role in ensuring success for this type of campaign.
Geofencing for Customer Retention
Attracting the customers is the first thing but then retaining them is another full story. Researches suggest that 83% of people connect with those brands that are appealing to their digital needs, and of that 83%, 62% can become loyal customers.
The famous brand Walgreens is using mobile marketing as a way to build trust and then eventually promoting brand loyalty in its customers through geofencing. Whenever a customer pulls into a fenced location, a notification allows the user to open the app without having to look for it. After this, customers are able to scroll through their account details or view promotional offers. Clearly, the data shows that loyalty programs are a must for today’s consumers. Your business can mirror Walgreen’s direction when you add a geofence to your mobile app.
This specific approach to mobile marketing gives the user experience of exactly “what they want when they want it,” which is a hard feat to achieve in geofence marketing. Service without interruption promotes customer loyalty.
Geofencing in Marketing
Before the usability of geofencing, Google and Facebook were playing around with how to add the geofencing technology to strengthen their ad targeting. Now, on both platforms, you can establish GPS boundaries to ensure you serve the ads while your target audience is literally in the right place at the right time. In contrast to beacon marketing, geofencing usually encompasses a larger area, such as someone walking by your storefront, by a competing business location, or coming to a specific locality. This can be helpful for marketers looking to increase sales, do event targeting, establish loyalty campaigns, or strengthen rewards programs.
Why should I start Geofencing marketing?
Last but not the least, there is a question that why should a person start geofencing marketing? The answer is just simple as there are many reasons due to which you must start it from today. Some reasons have been described below:
- Data effectiveness:
- Geofencing can bring about a whole new world of data if done properly. With the right marketing team, you’ll be able to collect very valuable data on duration, traffic patterns, and messaging effectiveness.
- Geofence Targeting:
- The biggest advantage of geofencing is that your message can become more relevant to those around you. By reaching out to those who are geographically close to your business area and layering other targeting data on top, you are much more likely to see conversions than if you were simply casting a net.
- Better attribution:
- Geofencing bridges the gap between advertising and action. You’re able to see when the ad was seen and what the customer did next. It helps to see the statistics of your ads every time This is a huge help and can be used across the board for all of your marketing efforts. This is actually a key player in determining ROI for your business.
- Spend efficiency:
- Higher quality can lead your business to more effective marketing budgets. With geofencing, you’re able to reach out to the audience who is the most likely to convert. In this way, you will increase your ROI. This means that less budget is spent on less relevant customers and the more budget leads to more conversion.
The whole discussion leads to the point that geofence marketing can be used as a successful marketing strategy as it can help your business to grow rapidly. Learn more about how an effective geofence marketing strategy can benefit your business. Contact our Denver digital agency for a free consultation today!