How Geofencing Can Improve Your Advertising Strategy
Geofencing can help leverage your advertising strategy with a location-based marketing approach that can increase conversion rates. Geo-based marketing offers a perfect opportunity of advertising your products and/or services to a targeted and local audience.
What is Geofencing?
Geofencing is creating a virtual geographic boundary of a certain preferred radius that enables software to trigger a response when a mobile device enters or leaves that particular boundary or area. It relies on the modern technology that is defined by Global Positioning System (GPS), Wi-Fi, Radio Frequency Identification (RFID), and Bluetooth.
How Can Geofencing Improve Your Advertising Strategy?
Geofencing can help leverage your location-based marketing by mapping out a specific location of your interest with the virtual geographic boundary. When your potential customers get into the mapped location or the designated geographic area, the geofence initiates some predetermined actions or events via your prospects' smartphones.
The geofence triggers these actions by sending advert notices to your prospective customers in different forms such as text messages, ad campaigns, or in-app notifications. Your geofencing adverts or promotional notices can contain some special deals or offers such as discounts to sweeten your deals. The good thing with geofencing is that you can set your boundaries in multiple areas of your choice, including;
Your location: you can target your location, such as near your store/shop.
In-person events, conferences, or trade shows: this can be a marketing goldmine as you'll be targeting people who have already shown interest in your industry by paying for tickets and spending their time to attend the event.
Competitor's location: you can as well set your geofence in the localities of your business competitors and induce them to come your brand way with some irresistible deals.
Places near learning institutions such as colleges and universities.
Households: you can also geofence residential areas, especially those homes with a higher need or interest in your products/services.
These are just a few places you can target with a geofence boundary to draw customers into your business.
Geofencing being a location-based advertising strategy, can perfectly fit a small business to target local customers who are most likely to turn into loyal customers. By saying that, we don't mean that it cannot work for large businesses — as a general rule of thumb, it's always better to focus on quality rather than quantity. It will adequately utilize your local customer base and enhance your local sales by having more sales, engagements, and loyal customers.
Now that we have looked at how geofencing works and how you can use it to leverage your advertising strategy, let us now shift the focus to some of the benefits that geofencing marketing can have on your business:
Improved Analytics
Geofence advertising can significantly impact your analytics. Geofencing allows you to collect vital information about your customers. Some crucial information that it can provide you with include; your ads impressions/views, customers' visit duration, how frequent they visit, and their purchasing history.
All this information is important in having a good advertising strategy as it does provide room for improvement.
Better Customer Experience
Another benefit of geofencing is that you can use the insights drawn from your analytics to provide an improved customer experience. According to Derek Sivers, "customer service is the new marketing."
Using customers' data at your disposal, you can create a personalized experience with your customers and increase your chances of retaining them. You can provide them with promotional messages that resonate well with their likings and preferences based on their previous history. This will increase their chances of returning to purchase in the future as you provide them with what exactly works for them.
Competitive Advantage
Geofencing provides location-based advertising that can put your business ahead of your competitors with high-quality content aimed at a specific customer base. Associating yourself with your customers by providing relevant and personalized content will help build a better relationship with your business hence more loyal customers and increased ROI. It also helps you to keep pace with competitors who are already doing this.
Saves Time and Money
Targeting a mass number of people online who are not likely to be interested in your services may be of less value to your advertising strategy than targeting a limited scope that you understand and are likely to turn into valuable leads. You will spend less time and resources in administering results-driven promotions when you understand your audience.
Guaranteed Security
With geofencing, you can be able to monitor and track every activity on your premises. You get to know when products are moved from your store and when employees leave work premises or the geofence boundary. You can also keep track of customer trends such as peak times, consumer interests, and so on.
Key Takeaway
You can implement geofencing with multiple targeting techniques such as content targeting, day-partying, and retargeting to capitalize on your results. Geofencing is incredibly helpful for small, local businesses and can help you get a better return on your marketing investment.
Although location-based marketing has excellent ROI, you need to leverage it with geofencing to run improved and result-oriented advertising. Geofencing allows you to source new customers, retain existing customers, and improve your customer service experience.
SBA can help leverage your advertising strategy with a well-articulated and executed geofence that assures you of impeccable results. Reach out and schedule a free consultation with us to learn more about how geofencing can optimize your advertising strategy for maximum results.