Geofence marketing (also known as geofencing marketing) seems to be growing more popular by the day. It’s not surprising since geofence advertising literally targets consumers right where they live, work, or hang out.
Geofence marketing uses location-specific ads that are seen only by people within a delimited area, such as a local restaurant.
Their mobile phone signal determines their location, and they can easily leave or return to the geofenced site.
Geofencing operates at least partly on the assumption that people within a location—especially a place where goods and services are available—will stay or return if they have the right incentive to do so. That incentive might be a discount coupon, for example.
What Is Geofencing Marketing?
You might have heard this term circulating around your workplace or read something about it online, but just what is geofencing marketing all about?
This form of marketing lets advertisers target people in very precise areas using display ads. It follows them as they go to different places within the “fenced area”—which can be as big as a stadium or conference facility or as small as 5 square feet.
Geofencing marketing can reach people through either by targeting them through their IP addresses or by GPS, utilizing their latitude and longitude coordinates.
Increasingly, geofence software storing historical data on those it has targeted, including where they’ve been as well as demographic and behavior information. It can paint a pretty clear picture of each customer it catches in its “net.”
7 Key Benefits of Geofence Marketing and Advertising
E-commerce has long been a thorn in the side of local businesses. Not surprisingly, they find it hard to compete with online businesses that can sell things with the simple click of a mouse.
As appealing as brick and mortar storefronts might be to residents of a specific town or city, those stores can’t match the volume pricing of many online-only entities. Nor can they compete on the same playing field as those with no physical space to maintain.
That’s why this article discusses the benefits geofencing can offer local businesses and other place-based entities or events, which could be trade shows, concerts, live meetings, or any of several related things.
1. Geofencing Benefits Local Businesses
So, yes, local businesses have been among the first to explore geofence technology—and this can do a lot to sustain regional, local, and neighborhood economies.
Locally owned and operated restaurants, hair salons and barbershops, medical and dental practices, arts organizations, and others might have an online presence for their local clients. Still, few people outside the area would travel to frequent them.
2. Geofencing Offers Personalization
Who doesn’t like to feel special or recognized? Most people do—at least some of the time. This is what happens when a message pops up on your phone that’s addressed to you specifically. It also happens to be from the building you’re in or a place very near.
If it’s a restaurant or coffee shop, the ad might encourage you to try a new or “signature” entrée or drink. If you make the purchase and are happy, that means a nice “ka-ching” for the business. Plus, it’s a notation in the targeting software.
3. Geofencing Is Effective at Reaching Prospects
Geofence marketing allows you to reach prospective customers or clients at opportune places and times. You reach them when they’re at or near your place of business.
Thus, an added incentive like a phone text with a coupon link could lead to return visits. They might even become regular patrons.
4. Geofencing Facilitates Data Collection
Real-time data is valuable. It tells you who is close by, so you know what they’re doing at a given time. If you geotarget them as well, you can combine what you know about their current location with data such as their demographics or past locations.
Geotargeting complements geofencing by adding defined criteria such as demographics, behavior, interests, and so on to someone’s consumer profile.
5. You Can Measure Offline Conversions Using Geofencing
It’s possible to track and record return visitors to your business location. Whereas it used to be that conversions were measured in terms of sales or inquiry number. Now, the conversion process can be tracked in more detail—from the first message response to repeat visits.
When a customer enters a geofenced area with their mobile device and has been targeted there previously, the tracking software recognizes that person. It treats their visit as an offline conversion.
6. Geofencing Benefits Healthcare Providers
For healthcare providers, the majority of clients are locals, which makes geofencing and geotargeting ideal for their advertising needs.
In fact, though, a recent study found that 80% of “near me” searches are carried out on mobile devices. This finding might signal even more significant success since these searches might have been done by non-locals visiting the area and needing healthcare.
7. Geofencing Can Help Businesses in a Holistic Way
Good business practices lead to happy customers. These practices, in turn, lead to conversions. one of these is tracking employees’ time and whereabouts, especially when their jobs frequently take them into the field and away from their managers.
What’s more, geofencing, when integrated with smart home technologies, can move that industry forward in ways that could make all businesses more efficient as well as secure.
Are You Being (Geo)Tracked?
Today, we can walk into a business we’ve never been to before and be greeted like long lost friends—maybe with a generous promotional discount as well.
While some people are quite pleased by the innovation of geofence marketing and all it brings them, others find it annoying, if not downright invasive. Some even see the practice as a last-ditch effort to reclaim customers who moved online for most shopping
For our part, we’re in this for the long haul. At least as long as this haul lasts, that is. There will be more innovations to come, and we’re a good source of assistance when you’re getting familiar with them. Just give us a shout!