Geofencing The Future is Now
Updated: Jul 15, 2022
A good marketing strategy focuses on staying relevant to your consumers. When trying to stay relevant, location can be key. One way to leverage location is through a technique known as geofencing. Geofencing is the use of GPS or RFID technology to create a virtualized geographic border that allows the software to respond when a mobile device enters or leaves a certain area. A geofence can send mobile push alerts, SMS messages, or warnings, target social media advertising, track car fleets, disable specific technologies, or provide location-based marketing data, depending on how it's set up.
Geofence hardware and software have been around for decades, but they have always been expensive. Supply was first restricted to military purposes but that soon changed. The livestock sector was the first to use it commercially. Cattle were tagged with GPS locators by ranchers. They could then see where they were grazing by pressing a few buttons. It saved them the physical effort of going out to look for the cattle and assisted them in locating the ones that had wandered away from the herd. The transportation industry soon adopted the same technology. Fleet headquarters could locate any eighteen-wheelers at any time of day or night by then. Trucking businesses enhanced their distribution and revenue overnight in an industry with so many moving components.
The future of geofencing is the world of small businesses. Think about the possibilities!
Locals make up the majority of your company if you own a physical store. That means mobile marketing, which targets people in your city and adjacent areas, is the best use of your money. You can target your advertising to customers who live or work in specific areas (such as Silicon Valley or the East Coast). It can transform a successful campaign into a world-record-breaking campaign.
Benefits of Geofencing for Small Businesses
Geofencing provides adverts, sales, and promotions to smartphone users in your business's immediate vicinity. According to Plot projects statistics, geofencing improves app usage by more than 200%, resulting in higher consumer engagement and a higher chance of making a sale. Furthermore, geofencing has a fifteen-fold higher click-through rate than standard push alerts. This means that geofencing notifications have been shown to improve the number of people who click on the promotional message your company sends them. Geofencing can be a great benefit to small businesses wanting to boost consumer awareness of their brand because big organizations have the advantage of being well-known.
Relevance is everything when it comes to marketing your business! Advertising and marketing clutter is continuously bombarding consumers and has been doing so for years. According to USA Today, the average person is exposed to 3,000 to 5,000 advertisements per day. The consensus is that people don't want any more adverts and would be annoyed if they received them directly on their mobile devices. Recent research has debunked this misconception, finding that 70% of customers value geofencing notifications and that 53% are likely to engage with the advertisement.
With geofencing advertising, you can tailor the creative ads to the people who are strolling inside the geofences. If you want to reach people who are attending a conference, you can tailor your creative ads to those who are attending. However, if you wanted to alter the creative after a week, you could use geofencing to accomplish it. When compared to billboards, where you may not be able to modify your adverts for up to a year, this can be troublesome. This means your ads can always stay relevant.
Retailers can use geofencing to ask customers for immediate feedback on their previous store experience via push notification or an app message. This not only informs merchants on how they may improve but also provides valuable social proof for brand recognition. It also makes customers feel truly cherished and appreciated, resulting in more positive brand perception and overall experience. They are not only reminded of the store's offerings, but they also feel like they are a part of the brand's story.
Get More Bang for Your Buck
Because of the targeted nature of the campaign you are launching, geofencing is projected to yield a higher ROI than other brand and direct response efforts. You can obtain at least 97% greater reach for your money using geofencing than with simple targeted approaches like zip code targeting. Even if you only want to target a 1-mile radius around your site, compared to 10 buildings, geofencing will earn you at least 99% more reach.
Be More Efficient with Your Data
The machine that is modern business is driven by data. The faster and more precise data arrives, the faster clever businesses can react. Traditional paper discounts and media promotions are excellent but obtaining statistics on how efficient they are at attracting and keeping customers has always been tough. That isn't the case with geofencing!
The same approach can be used to assess if devices visit a retail store after getting any form of advertising when using location data to the target. You can tell how many individuals inside geofences saw your advertising and walked into your building after seeing them with geofencing. Setting up geofences in a certain location also allows a company to learn about things like foot traffic patterns, popular neighboring stores, how long people remain in one place, how often their messaging leads to a conversion, and which demographics convert the most. This information can then be used to inform the company's other marketing activities.
Geofencing Strategies Your Small Business Can Use
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