If you’re a marketer, you must have already heard of geofence marketing.
Many marketers are already taking advantage of this tactic to boost their sales, get more conversions and increase their profit. And you should try using it too if you want to stay ahead of your competitors.
But before using geofence marketing for your business, you first need to understand what Geofencing is and how it can help you grow as an entrepreneur.
So let’s look at what geofence is and why marketers should use it in their marketing strategy.
What is Geofence Marketing?
Geofence marketing is an advanced form of marketing that lets you target potential customers based on a specific target area.
It lets you create a virtual boundary around a targeted location of your choice. You can set this location within a city, a state, a country, or even a specific area around your physical store.
When a mobile user enters this defined location, you can trigger different events using geofence technology.
Most of these events revolve around delivering some kind of advertisement with the aim of boosting your sales and increasing your profit.
This can be done either through the use of SMS or through push notifications, or even through a programmatic advertising stack.
So by using this technology, you can market your product or service to the right audience at the right time.
The reason why geofence marketing works so well is its flexibility to let you personalize your marketing strategy to make it more appealing to your audience.
You can use it to create marketing campaigns that align closely with your targeted audience’s needs, preferences, and interests. This helps you make your marketing efforts more effective and more successful.
So using geofence marketing in your marketing strategy can be a wonderful way of increasing your ROI. But that’s not it. It has several other benefits for your business too.
So let’s look at 5 more reasons why you need to include geofence marketing in your marketing strategy now.
1. Target Customers Around Your Store
One of the major benefits of using geofence marketing is that it helps you boost your offline user engagement. With geofencing, you can easily identify the potential customers who are within your defined boundary as soon as they step into it.
So you can instantly target them by sending push-notifications and notifying them about the presence of your store around their current location. To encourage them to visit your store you can tell them about your offers and discounts.
This is a great way to encourage them to walk into your store, and since the store is located just a few minutes away from where they are, they don’t even mind paying a visit.
It’s a great way of targeting customers around you and increasing engagement in your physical store. And once they step in, you can ask them to explore your other products and services for more options.
2. Attract Your Competitor’s Customers
With geofence marketing, you can even target your competitor’s customers. For that, you need to geofence your competitor’s stores. This method is called geo-conquesting.
By doing that, you can target your competitor’s customers every time they visit their stores.
You can then entice these customers by notifying them about your store and telling them why your store is better than that of your competitor.
It can be due to a special offer, free shipping facility, money-back guarantee, or even because of a better shopping experience that you can offer. You’ll be stunned to know that 3 in 4 millennials (78%) prefer to spend money on experiences over stuff. So they’ll definitely respond to your notification if you can convince them about the superior shopping experience that they can have at your store.
Also, studies show that 65% of customers check for price comparisons while they’re physically shopping in a store. And this influences 51% of shoppers to purchase from a company other than the one they originally intended to. So if you have a better price to offer, you can majorly benefit from notifying these customers about it.
3. To Use Customer Feedback for Improved Experience
Just like you can know when a target audience enters your set boundary, you can also use geofencing to know when your customers leave your store.
You can use this information to reach out to your customers by sending out survey forms to know about their experience in your store.
The customer’s experience is still fresh in their mind when they are just leaving the store. So by taking their feedback right at this moment, you increase the possibility of getting a more accurate result of your survey.
This feedback can help you get an insight into what your customers think about your business, and using this information, you can improve it to enhance your customer service and your overall business in general.
Also, studies show that you’re 7 times more likely to convert a lead if you tried to reach it within the first 60 minutes. So that’s another benefit of reaching out to them right after they exit your store.
4. Build Strong Local User Base
Online shopping has definitely taken center stage these days. Although it offers you the chance to reach out to customers across the globe, it’s important to understand that your local customers are like the backbone for your business that helps you stay on the front line in your locality.
So no matter how successful your eCommerce section is, you can’t ignore your local user base. Geofencing offers you a way to connect with your local customers who are likely to do business with you.
Using this form of marketing, you can create and nurture your relationship with a strong local user base that can gradually expand over time.
The best thing is that you can create additional geofences if you are planning to build multiple stores across different locations.
5. Cost and Time Effective Marketing
Geofencing is amazingly cost-effective. Since it lets you target your audience based on their location, you don’t need to mass-spray your messages.
It also offers a ton of other options as to whom to target. You can carefully choose from these options based on your marketing requirements.
Also, it doesn’t need any special skills to be a geofence marketer. Anyone can do it super easily and quickly.
This means that you don’t even need to hire a professional for it. This makes it amazingly cost-effective. Not to mention, it saves a lot of time too.
These are some of the reasons how geofence marketing can benefit your business. Geofencing, along with its push notifications, has proved to be an excellent way to differentiate your mobile presence from that of your competitors and encourage more people to engage with your brand. So if you haven’t used it in your marketing strategy, you should definitely consider using it now.