Utilizing Geofencing to Improve Local Business Marketing
Geofencing is crucial for local business marketing because it allows you to reach the people who are around you and interested in what you sell.
A geofence refers to a virtual boundary around a real-world area. It’s helpful for marketing a local business because it allows for hyperlocal targeting of people in a very specific location. Combined with other marketing tactics, you will also reach people who are not just nearby but also interested in what you offer. Find out how you can benefit from geofencing to market a local business.
Using Geofencing to Market My Local Business
Again, geofencing isn’t limited to just marketing or even cell phones. For instance, some companies use it to monitor activity in specific locations. The U.S. government relies upon it for security around military installations and even the White House. Still, you will find this tech heavily associated with mobile, local marketing. Geofencing apps rely upon Wi-Fi, GPS, RFID, or other device information to pinpoint the location of the user. The apps might either use proximity to a business or specific coordinates to decide if the mobile user has entered the boundaries of the geofence.
Since there are about 7.8 million people in the world and five billion mobile users, this technology has the ability to reach many potential customers. Generally, business access this technology through their own in-store apps, social medial sites, or advertising platforms. Imagine, for instance, you sell vegetarian lunches within a large city. Simply targeting your city or part of the city won’t give you the same results as having the luxury of targeting hungry vegetarians who are only a couple of blocks away or even walking past your front door.
When people approach your restaurant, you could offer them a mobile discount or BOGO coupon. When nearby workers start to look forward to lunchtime, you might send them a free delivery coupon. You can expect to enjoy much better conversions than by using promotions, coupon codes, and other ads that simply target people who happen to live within the same ZIP code or city and especially without any geographic targeting at all.
Benefits of Hyper-Targeting Local Audiences With Geofencing
Look at some encouraging statistics to see how you can improve your own local business marketing with geofencing:
- Adding geofencing to mobile advertisements will double a typical click-through rate.
- Over two-thirds of consumers say that they prefer personalized marketing experiences, and geofencing helps deliver that experience with its just-in-time messaging.
Even more, geofencing tech works with over 90 percent of today’s smart phones. Also, people almost always have their phones with them when they’re out and about, and they spend an average of five hours each day actively using them.
Your own business can benefit from geofencing with:
- Improved marketing returns: You can assume that customers will prefer to visit a nearby business, so you can enjoy better conversions. With some advertising platforms, better conversions will even translate into cheaper bids. You can spend less money on ads and earn more in revenue.
- Better data collection: You have a chance to adjust and test the virtual perimeter of your geofence and the kinds of offers and messages that you send. You should also add this information from other data you collect online and locally to gain a better understanding of customer behavior.
- Improved customer experience: Truly, you will use geofencing to provide your customers with a better experience. You can deliver exactly what they want at the time when they’re nearby and ready to obtain it.
Common Ways Local Businesses Use Geofencing for Local Business Marketing
Marketers use geofencing in a number of different ways. Common applications include:
- Business apps: These days, lots of businesses develop apps for consumers to use. Besides the other benefits of having consumers download your business app, you can also include geofencing to send notifications when users enter your defined locations.
- Text messages: Along with email lists, it’s great to get permission to send text messages to your customers. You can use software to automatically send pre-written text messages when users step inside your zone.
- Third-party applications: You may not have the resources to develop your own apps yet; however, you can find third-party coupon and promo apps that give you access to geofencing technology and very often, a wide audience.
- Social media: Twitter, Facebook, and most other large social platforms have advertising programs that will allow you to use their geofencing capabilities.
- Search and other internet ads: Advertising platforms, like Google, will let you define geofencing locations for displaying ads.
Tips to Maximize the Benefits of Local Business Marketing With Geofencing
As with most marketing, you should include a clear call to action. In this case, your call to action should emphasize immediate action because you’re taking advantage of the fact that your customers have moved close to your brick-and-mortar office or store. You don’t want to tell these customers that they can save money all month. Instead, you want to let them know that they’re lucky enough to be close just when they have the chance to take advantage of your deal.
Also, you’ll enjoy the best results if you mix geofencing with other marketing techniques, like search, demographic targeting, and so on. You probably don’t want to target everybody who happens to wander near your business but those who are most likely to want what you’re offering.