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Understanding Geofencing: Boost Your Business with Location-Based Marketing

It’s high time you integrate geofencing into your business. It’s proven to get you more sales, engagement, and loyal customers.

Geofencing is a location-based service that businesses use to engage their audience by sending relevant messages to smartphone users who enter a pre-defined location or geographic area.

There are smart companies that send product offers or specific promotions to consumers’ smartphones when they trigger a search in a particular geographic location, enter a mall, neighborhood, or store.

Do you desire to improve your customer experience? I’m sure you are, considering that 90% of customer experience decision-makers have agreed that a good customer experience is critical for their success.

And with customers being the major source of revenue for every business, delivering high-quality service through geofencing is important. If you’re into any form of digital marketing, you need to take this seriously as it’d help you acquire new customers and convert them into paying customers.

A Study by Bain & Company shows that a little increase of 5% in customer retention, can lead to a profit increase of 25% to 95%. Trust me, these numbers are worth paying attention to!

Since customer retention is too challenging, knowing how to interact with your potential leads in a more personalized manner will definitely help.

A research report by Experian shows that personalized emails sent to consumers have a great effect on open rate, triggered open rate, promotional click rates, and triggered click rates.

So, the earlier you start reaching out to potential and loyal consumers at the most relevant time, with the relevant product/service, the better the results you’re likely to get.

So how do you achieve it?

Simple: Integrate “geofencing” into your marketing strategy and you’d be amazed at the consistent results that you’ll get. Creating geofencing campaigns can truly transform every facet of your business.

Does it work? Well, Papa John’s is renowned for their Super Bowl ads, but they ran a mobile ad triggered by Geofencing solutions from ThumbVista, to promote their Papa Loyalty Programs.

At the end of the campaign, the brand recorded over 68K impressions with 469 actions taken resulting with a .69% CTR. They also gained a brand awareness with the rewards program in a new market area.

You might have heard of it, or this could be your very first time to hear it — and I guess you’re now wondering what it’s all about.

Having been introduced to geofencing and how it can help with customer service, let’s consider a few definitions.

 

What is Geofencing?

According to Techopedia, geofencing is described as:

“A technology that defines a virtual boundary around a real-world geographical area.”

While Wikipedia defines it as:

“Virtual perimeter for a real-world geographic area.”

It’s not some complicated programming language or complex development tool.

Geofencing is a technique of serving smartphone users with ads that are relevant to them, by creating a virtual perimeter or boundary around your business location which notifies users as soon as they enter the boundary.

In other words, geofencing can be regarded as a mobile marketing optimization strategy. So far, you could see the bright side of your business as you leverage on mobile ads that are targeted to your customers within a geographic location.

People are always ‘on the go,’ but they always have their smartphones with them — which they use to research products and services before buying them.

A report by the Office for National Statistics revealed that 58% of internet use ‘on the go’ is on mobile phones or smartphones.

For this reason, you’re no longer at a crossroad on whether you should start building geofencing campaigns or ignore it. Right now, it’s an important aspect of your marketing strategy.

 

Is Geofencing Right For Your Business?

Why is geofencing so important today?

You may not fully be aware, but let’s review some of the reasons that will make you kick yourself in the butt for not leveraging it:

i) Easy customer reach: When it comes to reaching out to your customers, geofencing is an option you shouldn’t neglect — because it notifies your customer about your product/services whenever they’re close to your business location through their mobile phone. That’s cool, isn’t it?

There’s no doubt as to the results it will generate, especially when you consider how addicted people are to their mobile phones.

ii) Instant consideration: Can you call the attention of your customers instantly when they walk by your store without shouting at the top of your voice?

I doubt.

Through geofencing, you’re able to trigger instant messages that pique a customer’s interest and nudges them to come check out the latest deals in your store. Remember that 90% of SMS are read within 3 minutes — so, geofencing campaigns help consumers make informed and instant decisions.

iii) Grows brand awareness: The mobile marketing strategy that leverages on geofencing provides local and multi-channel businesses, the chance to communicate with their potential consumers who are close by and ready to purchase through mobile phones.

These messages serve as a reminder to your consumers to choose your brand out of the thousands of other similar businesses around a particular location.

iv) Reduction in cost of marketing: With the high cost of creating ads campaign, using geofencing is sure to cut down the cost and still produce a great result — since it only focuses on local consumers and these consumers are likely to buy from you.

Frequently Asked Questions