Table Of Contents
- What is It.
- What it is not.
- Competitive Conquesting
- Customer Loyalty Efforts
- Marketing Message Differentiation
Today’s retail landscape is highly competitive, with consumers spending more money online, retailers need to leverage all of the digital tools at their disposal to compete.
We believe Consumer action is the greatest indicator of intent. So on behalf of our clients, we leverage the “digital breadcrumbs” consumers leave on-line and off-line and target those who are most likely to need or want our Clients’ products and services. Geofencing is the primary tool we use to capture those digital breadcrumbs out in the wild (off-line). This article will provide an overview of how leveraging digital tools and tactics can help you grow your business and give you a competitive edge. First let’s quickly talk about what geofencing is and is not.
What Is Geofencing Marketing?
Geofencing is a location-based technology that allows retailers to put a virtual fence around a physical building (brick and mortar location). We can then capture the mobile device IDs in the fence, and use that to serve them ads in the future. Here are definitions from other trusted sources. 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. A geofence can be as small as an individual building or home and as large as a square mile. But it’s the placing of that defined boundary that makes geofencing possible. Below is an example of a geofence placed around the Philly’s MLB stadium and parking lot in Philadelphia.
Geofencing Marketing Is Not?
5 Useful Geofencing Marketing Strategies Retailers & Franchises Can Use
Through a strategy called “geo-conquesting.” Retailers can track customers of local competitive businesses within their service area and serve them ads to start the conversion process. Imagine you own a clothing store franchise. You can send offers to customers of other local competitors to have them come and visit your store.
Customer Loyalty Programs
Geofencing helps marketers understand the physical journey and experiences of its own customers as well. You can track the competitors locations where your customers also shop. This will allow you to make more specific offers. You can also send ads to your best customers to improve engagement and increase customer loyalty.
Using geofencing, loyalty cards may no longer be needed. Retailers can use data to target most frequent customers. Another tactic maybe to join up with other neighborhood non-competitive retailers to draw customers into a specific area where everyone can benefit. Like a bar offering a discount to folks who visit the local sporting arena.
Marketing Messages Optimization
We recommend running at least two ad messages to support each campaign. Via A/B testing retailers can optimize campaign performance. Below is an example from a prior client of ours who owns three RV dealer locations. A couple things to point out here.
- We set-up each location as a conversions zone. We were able to track that our campaign drove 117 customer prospects into the three dealerships.
- We tested three different messages. There were dramatic differences between how each performed.
- Generic Dealership Message drove 17 visitors to show rooms.
- Bring your RV in for service drove 43 visitors to the show rooms.
- Bring your RV in for a trade-up drove 51 visitors to the show rooms.
With this retailers are able to directly measure which advertising campaigns were effective in driving customers in-store.
Conversion Zone Tracking – Walk ins
Geofencing technology has improved significantly over the last couple of years, now we can put fences around individual buildings and set-up conversions zone to identify exactly where customers coming into our client locations where identified. The below report is a snapshot from that same RV customer with three locations. We can see where the fences were set-up and how many each location drove into their dealerships. Some drove none, like Camping World Bakersville. Pismo Creek RV resort drove the most with 35 visitors to client store locations.
Valuable Campaign Metrics
Geofencing campaign also give us more metrics to track and optimize campaign. We know the current CTRs average .01% to .03% depending on category, strength of creative, offer and other relevant factors. The net net of all that, digital display ads are like outdoor billboards we see along the way on highways. Overtime there is a positive cumulative effect with prospects associating the services and products offered with your brand. We need have two other metrics we use to evaluate campaigns. 1. View-to-visit, customers who saw you ads and come into your retail location. 2. Click-to-visit, customers saw and clicked on your ads and come into your retail location.
The sum of it all? Geofencing is one of the most effective tools that brick-and-mortar retailers should be using to super charge marketing campaigns. And we are here to help.