Geofencing Marketing To Find New Customers

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What Is Geofencing Marketing?

Marketing competition has become very stiff, and marketers should ensure they stay one step ahead of the competition at all times with their unique digital marketing strategy. In a business, marketing people have to focus on areas rather than trying to attract potential clients globally.

Geofencing marketing is useful in this situation. A contemporary tactic that enables companies to precisely and pertinently target potential customers is geofencing marketing.

It makes use of geographical restrictions and sends consumers customized messaging. On their mobile devices, prospective buyers get tailored advertisements when they enter a particular region.

What precisely is geofencing marketing, though, and why is it predicted to grow to a value of about $12.2 billion globally by 2032?

Geofencing marketing is not some sci-fi dream. With a projected global value of 2.65 billion in 2024, it is a legitimate marketing technique. Businesses like Starbucks use it to generate leads and draw customers. We go over how geofencing marketing operates in this article and why it is so important given the present situation.

The Work Process Of Geofencing Marketing System

Geofencing is much more than just conventional advertising. Businesses of many kinds such as local search engine optimization company too can use it. Everyone can benefit from geofencing marketing, including retailers and eateries. However, how does it operate? What is the underlying technology?

As the name implies, RFID, Wi-Fi, and GPS technologies are used in geofencing marketing. It is used by businesses to draw virtual, location-specific boundaries around specified areas.

Targeted actions take place when your customers enter this area. Through text messages, in-app adverts, and push notifications, they are exposed to your ads. If your company wants to use the method, be aware that you can tailor your campaign based on the demographics, habits, or tastes of your target market. Therefore, you can share with your audience the necessary information, like about promotions or something like that.

What Are The Advantages Of Using Geofencing Marketing Strategies?

Because geofencing can improve search engine performance and consumer experience, it is frequently employed across sectors. With its ability to target precisely, it also maximizes marketing efforts. That's not all, though. Adopting geofencing systems can provide your brand with numerous additional advantages.

1. Laser-precision targeted advertising

You can establish virtual boundaries around your stores, venues, or events by utilizing geofencing marketing techniques. As a result, you can draw in clients who are already considering your offer. They will see your advertisement as soon as they arrive at the area of their choice and will be forced to buy.

For instance, Domino's increased orders by 30% by using geofencing to target mobile users near rival stores with exclusive deals.

2. Increase Client Engagement: Appropriate Location, Appropriate Time

Macy's, a well-known brand, used geofencing marketing to increase sales by 15%. They accomplished this by merely informing customers who were close to the stores about the discounts. You're in for a treat if you assumed geofencing marketing was only about displaying advertisements.

In reality, it's about encouraging interaction with your brand. You can use this tactic to create customized push notifications that highlight incredible deals. Also, you can invite individuals to occasions or remind them about your gamified devotion program.

3. Increase Foot Traffic and Sales through Conversions Based on Location

Marketing's goal is to convert interest into sales. Geofencing works wonders here by guiding nearby potential clients to your real location. Consider a situation where customers who enter a geofence around a drugstore, such as Walgreens, and search online for particular health and beauty products receive coupons and store location information.

Targeting clients inside particular geographic regions with tailored promotions and offers is known as revenue marketing using geofencing. This tactic boosts foot traffic and generates purchases right away.

This focused strategy has the potential to significantly increase foot traffic and, eventually, sales. For example, Walgreens' sales increased by 20% as a result of geofencing campaigns that included organic SEO and display marketing. These advertisements targeted users searching online for particular health and cosmetic items.

4. Unlock Real-time Data and Insights: A Treasure Mine for Upcoming Plans

For businesses, geofencing marketing is not a temporary fix. In fact, it's a fantastic method for collecting original data. To determine how successfully a message appeals to clients, you can gather information about their behavior when they come into your area.

You can even pinpoint locations where many potential clients are concentrated. This will assist you in adjusting your messaging appropriately and enable you to track the effectiveness of your geofencing initiatives in real-time.

How To Craft A Success Offering Geofencing Digital Marketing Strategy?

It could appear like a difficult undertaking to set up a geofencing marketing strategy. In actuality, you may accomplish this with a clear plan. Here's how.

Step 1: Learn your goals and the target demographic.

First of all, set concrete objectives for your marketing campaign and, secondly, identify with whom your perfect clients are. Determine the demographic you wish to reach. Additionally, establish specific objectives like raising sales or brand exposure.

Step 2: Selecting Your Geo-fences

Next, determine where your target clients are most likely to be found. Choose geofences for specific areas. Consider installing geo-fences around well-traveled hiking routes, for instance, if you are marketing outdoor products. Additionally, outdoor sporting equipment businesses and camping areas are options.

Step 3: Create Eye-Catching Advertising Creatives

Create captivating messaging and images for your target audience. Create advertisements that will appeal to your target audience by showcasing exclusive deals, events, or promotions. Make sure the ad material is interesting and pertinent to get your potential client's attention.

Step 4: Launch Your Campaign for Geofencing

Join forces with a geofencing app or platform. This will assist you in defining your ad distribution schedule, target audience characteristics, and geo-fences. Identify the ad delivery triggers.

Step 5: Track and Evaluate Results

After that, track metrics for your brand to determine the effectiveness of the campaign, including the impression rate, click through rate and visits to a website. Make sure to monitor the responses of people for the number of persons that enter the geo-fences, the number of persons that view the advertisement and the number of people visiting the store’s website. To this end, it will be possible to collect important data on which advertising campaigns and strategies are most effective with the target consumer audience.

Step 6: Adjust and Enhance

So, there is an idea that after gathering the data, one has to work on the messages and the targeting. If there is an opportunity to place geo-fences in the future, it is necessary to do it in those places where people go most often. Furthermore, it’s possible to change the ad options depending on the gathered data received from these sources.

Seven Types Of Geofencing Marketing

Knowing what kinds of geofencing marketing you may use is crucial if you want to use it for your company. Here are seven strategies to consider:

  • Location targeting
  • Event targeting
  • Addressable geofencing
  • Keyword targeting
  • Category contextual targeting
  • Geo-optimized targeting
  • Website retargeting

1. Targeting Locations:

When you think of geofencing, this is the method that is most frequently used. Targeting a specific location, usually a rival's location, is known as location targeting or competitor targeting.

To target their clientele, a wedding dress company might, for instance, erect a geofence around David's Bridal shops. Those customers will see an advertisement for the other wedding dress company when they are close to David's Bridal.

Location targeting is an excellent strategy for drawing potential customers to your company and keeping them away from your rivals.

2. Targeting Events:

If you employ event targeting for your geofencing marketing, you will create a geofence around an event site. This geofence is configured to operate throughout the event's scheduled duration.

During the event, anyone who enters the fence is added to the crowd. You can then remarket to these leads up to 30 days following the event. Event targeting works well for concerts, job fairs, industry gatherings, and more.

Because they know those individuals are interested in a country bar, a restaurant, and a bar with a country theme, for instance, they may target folks who attended country concerts at a nearby location.

3. Geofencing That Is Addressable

Targetable geofencing involves targeting a group of people who live or work at a particular address. This type of marketing is suitable for firms that have a list of customer addresses or for B2B organizations that want to target a particular personality in a particular company.

For instance, an HVAC business can keep a list of addresses from past projects. Using that list, they might target those individuals with special offers for yearly maintenance.

4. Targeting Keywords:

Keyword targeting is an additional geofencing marketing strategy. It involves targeting prospective clients using their online reading habits, effectively targeting those interested in your sector.

For instance, a cabinet supplier might target a list of kitchen remodeling-related keywords to display advertisements to users who have been searching for kitchen remodeling-related content. Based on their search terms, this is a suitable method of connecting with folks who might require your goods or services.

5. Contextual Targeting By Category:

By using geofencing marketing and category contextual targeting, you may target individuals according to the online content they consume. You target subjects or informational categories, and those who access that content see your advertisements.

6. Targeting With Geo-Optimization:

Reaching consumers in a particular geographic area—based on a zip code, city, state, or similar—is known as geo-optimized targeting. Businesses that wish to increase brand recognition by focusing on a wider geographic area might consider this option.

7. Retargeting websites

Let's discuss website retargeting to conclude our list of geofencing marketing types. This kind of geofencing aims to encourage visitors who have already visited your website to visit your physical business by showing them advertisements. These advertisements are excellent for drawing in customers who have previously expressed interest in your company.

Elite Level Geofencing Marketing Examples

Starbucks:

Another Loyalty program involves notifying customers of special offers and promotions when they are within a Starbucks store through the use of geofencing. For instance, they can alert a customer to a happy hour special because the customer's location is near a Starbucks outlet.

Dunkin' Donuts:

Like Starbucks, Dunkin' Donuts takes advantage of geofencing. It notifies customers upon their entry into a geofenced zone, urging them to come to the store for deals.

Burger King:

This should remind McDonald's and Burger King of their marketed practice of geofencing, where they offered a one-cent burger through a notification to users approaching any McDonald's that was close to Burger King within 600 ft.

Sephora:

Sephora employs geofencing by offering customers focused deals and makeovers as soon as they set foot in or are nearby Sephora shops. This assists in encouraging consumer traffic and the overall store experience.

HotelTonight:

Thus, HotelTonight informs users about the last hotel offers in their location based on geofencing technologies, which provide users with quick access to the accommodation offered.

The Best Way to Include Geofencing in Your Marketing Plan

Using geofencing is simple; all you need are GPS coordinates and an app. As I previously stated, not all customers can utilize this on their phones (at least not yet), so make sure you take the appropriate measures to let your existing social media audience know that you are now actively promoting geofencing.

Being proactive is essential when putting geofencing into practice. Before you start, take into account every standard element of your current marketing plan, such as the following:

Understand Consumer Insights and Demographics

Nevertheless, there are certain things you should learn before you start on geofencing for marketing and that include learning who your local clients are, and what their age, gender and everything in between is. It will also raise the chances of your promotions being the most effective and getting the intended results.

Hold on to it.

You don't want your geofencing area to be overly big. Actually, a four—to five-minute travel radius is the standard. If you live in a city where most people walk, keep the distance between points A and B within four to five minutes; if most people drive, the greatest distance that can be successfully covered is four to five minutes.

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