Effective Uses of Geofencing
When used correctly, geofencing can drive traffic and sales while raising customer engagement.
Many business owners aren't quite sure what geofencing actually is, though. The answer is actually pretty simple: It's a virtual perimeter that defines a geographical boundary. Geofences can be used to target customers in physical locations, allowing businesses to deliver the best message through the right campaign — and to do it all at the right place and the right time.
Thirty percent of the world's population already uses location based marketing services and 80 percent of the population wants to get location-based alerts from businesses, so it appears this new geofencing "trend" is one that's here to stay. All sorts of companies can benefit from smart geofencing that is implemented in a strategic way.
Not sure how it can work for your business? Here are four effective uses for geofencing:
Engage local shoppers
This location-based service sends messages to smartphone users when they confirm a defined geographic area. Some businesses opt to send promotions to the customers' smartphones as they come into a neighborhood or a store. This is a really good thing for both marketers and customers because of the relevancy of the messaging. Hyper-local deals raise the urgency of buying (the customer is already in the neighborhood) and arrive at a moment that makes sense. Make sure to maximize your exposure and engage local shoppers before your competitors beat you to the punch.
Leverage your location
Companies can partner up with other businesses that offer complementary services or products. The company 1-800-Flowers geofences the areas surrounding jewelry stores that are located near their flower shops, with the knowledge that people who are purchasing jewelry are likely in the market for flowers, too. Think of smart ways to partner with other businesses, or just to tag on to what they may be doing well.
Customize offers for the most personalized experience
Not only do you know customer's behavior and location, geofencing also allows you to give them each a tailored experience. The store Neiman Marcus is using geofencing to allow salespeople to know when VIP customers are shopping and pull up and view their purchase history in order to provide the most personalized service possible. The trick is making sure you aren't intrusive, but instead adding value to your customer's experience.
With so many consumers walking around playing online games or staring at social media on a GPS enabled device, it's no wonder that so many companies are taking advantage of geofencing. Studies show that geofencing drives awareness and results in 60 percent lift in store visits from mobile ads. With this in mind, geofencing may be a better branding tool than audience targeting, and is something your small business should consider.