Curious about geofence marketing?
As with any new system, this approach to marketing is generating a certain amount of confusion. So, let’s begin with a few definitions. What is geofencing, exactly?
It’s the act of targeting certain digital devices based on location. First, GPS, Wi-Fi nodes, Bluetooth beacons, and satellite networks define a virtual boundary. Then, experts use software to send information to devices in that area.
The market is booming and expected to grow exponentially over the next decade. But wait, there’s more. In the sections below, we outline the reasons why this approach is unparalleled for small business marketers.
So, sit down, buckle in, and read on.
A Little History
While geofence hardware and software have been around for decades, they were costly. At first, supply was limited to military applications.
Commercial use began in the livestock industry. Ranchers tagged cattle with GPS locators. Then, they could see their grazing location by punching a few buttons. It saved them the physical trip out to find the cattle and helped them locate the few that strayed from the herd.
Soon that same technology expanded to the trucking industry. By then, fleet headquarters could locate any eighteen-wheelers day or night. In an industry with so many moving parts, trucking companies improved their distribution and revenue overnight.
Small Business Geofence Marketing
If you’re wondering how that applies to you, consider these possibilities. Do you have a brick and mortar store? Do you have employees deployed to deliver or pick up, transfer, or deliver goods? Do your customers live or work in a single location?
If you answered yes to any of these questions, geofencing just might be the step up you’re looking for.
If you own a brick and mortar store, you receive most of your business from locals. That means your money is best spent on mobile marketing which targets people in your city and surrounding areas.
If your employees are mobile, geofencing gives you the power to track their movements in real-time. If it changed the trucking industry overnight, think what it could do for you.
If your customers live or work in a specific area (like Silicon Valley or the East Coast), you can limit your advertising to those areas. It has the power to turn an effective campaign into a record-breaking campaign.
Bringing in Customers
When you market to target locations, you send ads, sales, and promotions straight to mobile devices in a specific area. According to Plotprojects, this form of marketing increases app usage by over two-hundred percent. It also generates high customer engagement and increases conversions.
Geofencing click-through rate is almost fifteen times higher than those of traditional “push notifications.” That translates to more revenue in your pocket for each promotion your business runs. It means more customers and more sales.
You can also use it to increase brand awareness at the top of your funnel. The narrower your target audience, the further your money goes. You can use more money to introduce your business and your brand because you have more to spend.
It’s Cost Effective
Timing is everything. If you’ve ever heard the phrase “strike while the iron is hot,” you know just what we’re talking about. So far, we’ve talked about using large geotargeting locations, such as towns and cities.
But what about smaller locations?
Did you know you can use geofencing to target consumers when they’re near a certain part of town, a certain street, or even a certain building? Imagine hitting your customers with a 20% off coupon to your store right when they reach your competitor’s location. Or what if their phone zings them with your branding ads when they enter their local mall.
If you send your ads when consumers are primed and ready to buy, they’re at the end of the sales funnel. Most of your work is done for you. You needn’t convince them to buy, only to make their purchases through you.
It’s Marketing Consumers Want
Did you know the average consumer is bombarded with an average of three- to five-thousand ads per day? We’re tired of ads. Moreover, we’re tired of ads that don’t even apply to us.
Geofencing, by nature, only targets appropriate devices. A recent study by search engine land found that 70% of consumers will share their location for something in return. They’re willing to give you their information for applicable information.
Furthermore, 60% of consumers look for local info on mobile devices. They’re primed to receive new information over their smartphones and tablets. In fact, that’s the way they prefer it.
The most interesting fact is 53% of consumers targeted by geofencing are likely to engage with your advertisement. When you compare that to the two to three percent which traditional advertising generates, you can see the clear winner.
This technology has already proven itself. The trick is to get creative. We already outlined a few ways to use mobile geotargeting, but don’t limit yourself to these.
Think outside the box.
What about matching up geofencing with specific times? If you own a restaurant, you can hit consumers not only when they’re driving on the freeway but also around lunch or dinnertime.
If you own an athletic gear store, why don’t you target people at local baseball fields when they have a game? Or basketball players and fans during the next home tournament?
Hopefully, you’ve begun to envision the many uses of geofence marketing. Use the tips laid out above, but don’t be afraid to get creative. Marketers are still discovering the countless uses of this new technology.
If you found this information helpful, take five minutes to browse the rest of our library of marketing articles.
So long and good luck!