Geofencing: The jewel of location-based marketing

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Taking your marketing campaign mobile is easy, as long as you focus on adapting traditional marketing rules to the mobile sphere. Successful marketing is based on effectively connecting with your consumer, and mobile tools like geofencing have made that connection easier to establish than ever. Thanks to mobile, marketers can now hyperfocus their campaigns by location and demographic leading to better results than ever before.

Apps create an intimate relationship with their users, and delivering location-based content is great for both leveraging that relationship to increase physical location visits as well as provide relevant content in general. There are two standard methods for delivering geo-centric content: geo-targeted push notifications and the geofence.


Geofencing Basics

Geofencing allows you to draw a virtual fence around any address or point of interest and automatically send a notification when a customer crosses that line. Whether you’re a small business owner or a huge corporation, you can use this technology to grab a customer’s attention before the competition.

Here are a few things to keep in mind to run a successful geofencing campaign:

1. Location: Geofencing technology allows you to circle an area as large or as small as you want. This flexibility is great because you can tailor your campaign size depending on the product you’re pushing. For example, Dunkin Donuts might only want to create a geofence around areas where its products are available, so the geofences could be tighter and spread throughout a region (Mobile Roadie allows you to create up to 20 active geofences at any one time). If a Coca-Cola is featured at a concert festival, the company might circle the larger, concentrated area where the festival is. A brand like Wynn Las Vegas, a resort and casino based in Las Vegas, could circle their hotel, or they might geofence the Las Vegas airport to entice visitors to come to the Wynn the second they land.

2. Message: Get in the mindset of your consumer; if you received a push notification, what would it have to say to make you go visit the store? What’s the incentive for consumers to accept your notifications? Make sure your messages are brief (Mobile Roadie’s tools allow for up to 128 characters with the option of linking to in-app content or a URL), and promote an action as opposed to an ad.

3. Frequency: Keep pop-up notifications to a minimum. Don’t pile irrelevant messages onto a consumer’s phone every time he enters your area. Every business is different, but typically one notification per week will suffice. The more relevant the messages are, the more likely consumers will be receptive to more messages.

This location-based targeting tool goes beyond cool technology; it enables marketing that actually works.


Why Geofence?

When successful, geofencing is a win-win; your consumers receive a special offer, while you receive data of where they’ve been and what they’re interested in.

According to a recent survey;

  • 39% of participants who signed up for location-based messages indicated that the message influenced their purchasing decision
  • 68% indicated that they will likely sign up for future location-based campaigns
  • 78% somewhat or strongly agree that mobile campaigns have the ability to influence consumers’ decision to visit stores triggered sales per transaction were larger than average transaction sales

By sending your customers a time-specific, location-specific push notification with a special offer, geofencing allows you to increase both open rates and redemption rates, which can lead to an increase in overall sales.

Moreover, 68% of participants said they would continue to sign up for location-based campaigns. Geofencing can lead to brand loyalty because customers find use in the tailored messages and offers they’re receiving.


The Bottom Line

Geofencing is a great tool to send relevant marketing messages to your consumer. If used effectively, its specificity allows you to increase open rates, redemption rates and sales, and can lead to greater brand loyalty.

What might be a creative way for your business to utilize geofencing in your mobile marketing campaign? Where might you circle, and what notifications might you send? Comment and let us know what you’re thinking!

By Devon Ott

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