Geofencing marketing is the most effective way to reach out to mobile users. Mobile marketers can promote products and services using mobile location data, and customers can receive customized content depending on their interests and requirements. Marketers can turn existing apps into strong marketing tools that improve user experience, drive store visits, and increase revenue with contextualized mobile marketing campaigns.
1. What is Geofencing Marketing?
When a mobile device or RFID tag enters or exits a virtual setup area known as Geofence, this technology allows cellular data to activate a geofence trigger. In other words, It’s a location-based marketing technique in which a mobile phone’s wifi, cellular data, and GPS are utilized to trigger a pre-programmed action anytime it reaches a virtual boundary or geofence. You will need to center it in a specific location.
1.1 Types of Geofence
Geofencing can be divided into two categories:
1.1.1 Active Geofencing
The user’s application is open on the shopper’s mobile device when active geofencing is used. Because this application uses the GPS service all of the time, the battery is depleted significantly more quickly.
1.1.2 Passive Geofencing
Passive geofencing is always on and works quietly in the background. It relies on cellular data from mobile devices or Wi-Fi internet connectivity instead of RFID and GPS.
2. What is the concept behind geofencing?
Let’s have a look at how Geofencing works.
- Geofences are initially marked on a Google map.
- The user’s first position with their phone or other tracking device is marked as the reference position.
- The device’s new position is determined using cellular data, Wi-Fi, GPS, and Bluetooth beacons as it travels.
- The phone’s software compares the updated new positions to geofence parameters to determine if the user has entered or exited the geofence region.
- According to the system’s architecture, the above entry/exit conditions trigger the associated action or notice.
- Some geofence applications do not require action or notification and instead operate in the background, collecting data from the shopper’s mobile device, such as how many times the consumer has visited the store.
3. Tips and Strategies for Geofencing marketing
3.1 Create High-Quality Content
First and foremost, local geofencing will be ineffective if your adverts are of poor quality. After the initial point of contact from a geofencing strategy, high-quality content keeps clients engaged. Thankfully, geofencing marketing encourages more precisely designed content—but to get the best return on investment, you must still adapt your messaging, graphics, and prizes to your local target.
3.2 Get to know your customers’ demographics and preferences
Make sure you understand customer demographics and who your local clients are before you start geofencing marketing. This ensures that the promotions you utilise are the ones that are most likely to be successful and yield the desired results.
3.3 Keep an eye on statistics
You should always make sure that the data you acquire using geofencing is being observed at all times. You can’t accomplish anything useful with your marketing campaigns unless you keep an eye on data.
3.4 Location Accuracy
To have successful geofencing campaigns, you must prioritize accuracy optimization. It will assist you in locating the user’s actual location.
3.5 Take action right away
Make sure your call to action (CTA) is clear and actionable right away. The idea is to advertise in such a way that people will flock to your location right away.
3.6 Targeting
By using geofencing to determine when to send considerably more vital and timely information, brands get an advantage over usability.
A brand is considerably more likely to attract customers by targeting users who are continually on the move and geographically close by, in addition to other top marketing variables like analytics.
3.7 Competitors’ Geofencing
To get a competitive advantage, use geofencing campaigns. By placing geofences around your competitors’ stores, you may learn more about what customers were looking for and then offer a better value. You may also create audience segments based on factors such as rival locations and how frequently consumers come. You can start tempting those clients away once your geofences are safe.
3.8 Take into account the size of your geofences
When it comes to setting up geofences, more isn’t always better. If your geofence radius is large, you may be wasting your time targeting users that are too far away to visit your store. It’s a good idea to arrange your geofences carefully and to utilise a variety of smaller geofences that are easily accessible by foot or car. You could also use polygon-shaped geofences and Bluetooth beacons to supplement your marketing.
3.9 Analytics and Tools
Make your campaigns more effective. There are a number of tools available to help you improve your geofencing, and looking at analytics will help you fine-tune your efforts.
3.10 Respect Privacy
Be open and honest with your mobile customers. Tell them how you got access to their data, especially if it’s through an app they use. Give them the confidence to use your app and location-based marketing, and they’ll be more likely to return in the future.
4. Future Scope of Location-Based Marketing with Geofencing
Geofencing has revolutionized the targeted marketing conditions, as seen by all of the benefits and applications. It enables local businesses to meet their target clients at the correct time and raise conversion rates considerably. According to the data, click-through rates for geo-targeted mobile display advertising have increased by a double from earlier times, leading us to assume that geo-fencing will provide a solid foundation for targeted marketing in the future.
5. Is geofencing appropriate for your company?
If you want to use a marketing strategy that:
- Allows you to reach out to your target audience based on where they’ve been;
- Provides measurable outcomes;
- Is adaptable, with the ability to monitor and adjust as necessary;
- If you want to raise brand awareness, attract new consumers, encourage customer loyalty, and so on, geofencing could be a good fit for your marketing approach.
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We’d be pleased to answer any questions you have about geofencing and how it may benefit your business. For further information, please Contact Us.
