7 Reasons Why Geofencing Marketing Is Essential For Your Business

It’s time to implement geofencing marketing into your business. Geofence marketing is proven to increase sales, engagement, and customer loyalty. Geofencing marketing is specific location-based advertisements which allow marketing teams to more finely target their advertising and content delivery based on the targeted area. A “geofence” is the physical boundaries of a target location. It could be a specific city, a postal code,a county, or a kilometer range around a physical store location. It is also possible to configure multiple geofenced marketing channels for businesses with multiple locations. With geofencing marketing, marketers can resonate more strongly with the people living in those locations. Every business should want to improve their customer experience, after all customers are the major source of revenue for every business. Delivering high-quality service through the best indoor positioning system, which leverages geo fencing technology is critical for their success. A study by Frederick F. Reicheld and Phil Schefter show that a little increase of 5% in customer retention can lead to a profit increase of 25% to 95%. Since customer retention is very challenging, knowing how to interact with your (potential) customers in a more personalized way will definitely help. A research report by Experian shows that personalized emails sent to consumers have a great effect on open rate, triggered open rate, promotional click rates, and triggered clicked rates. Therefore, the earlier you start reaching out to potential and loyal consumers at the most relevant time, with the relevant product/service, the better the results you’re likely to get. So how do you start reaching out to these potential customers at the most relevant time? Integrate geofencing mobile marketing into your marketing strategy.

The geofencing marketing strategy

rnIn a geofencing marketing strategy, the marketing team develops ads and content tailored specifically to the consumers within the geofence. People living in Toronto have vastly different priorities and needs than people living in rural Saskatchewan, so developing content that appeals equally to both audiences would almost be pointless. Geofencing functions by targeting internet-capable devices, such as smartphones, within the specified geofenced area. When customers travel into these areas, they may receive alerts or notifications about your brand’s offers, limited-time promotions, and events where they can interact with your brand. Mapsted’s location-based marketing with geo fencing technology essentially creates a virtual boundary that automatically targets consumers who cross the boundary into the geofenced area. Geofencing marketing is a powerful tool that allows marketing teams to deliver their brand’s messages to the right customers at the right times. In today's marketplace, businesses already know they need to expand their digital footprint to separate them from their competitors. Casting too wide of a net, however, can backfire on your company if you aren’t careful about your marketing strategy. One way to ensure your net is where it should be is by leveraging Mapsted’s geo fencing technology. Geofencing is the concept of targeting your online marketing efforts around a specific location. While most businesses operate online and sell to a wide range of customers across different locations, many still rely on their local consumer base to stay in business. If you're developing a multichannel marketing strategy for your brands, consider the potential of geofencing marketing. Geofencing marketing is an excellent strategy if you want to bring more local customers to your business. This method of marketing focuses on a specific location instead of trying to appeal to a wider audience online. Geofencing marketing can be implemented in many ways:

• Companies that travel for marketing events and industry conferences can set up geofences around future stops to establish brand awareness in advance of their local appearances
• Law firms and healthcare providers can geofence their advertising efforts to specific service areas
• Business owners could set up a geofence around their competitor’s location to entice them with a more attractive offer.
• Local businesses can set up geofences in the area around their stores to target the closest potential customers

These are just a few examples of the possible applications for geofencing marketing that can have a positive impact on your business. However, much like any other new product or services for your business, we suggest doing your own research to determine the best location-based solutions for your business.

The Benefits of Geofencing

The need to leverage on geofencing cannot be overstated. Though it is still relatively new, the rate of success companies have achieved with it is immeasurable. A study conducted by David Erickson shows that consumers love receiving location-specific offers right on their phone, due to its location relevance and interest. With this in mind, here are some benefits of geofencing mobile marketing you don't want to miss:

• It serves as an ads portal. This is obtained when potential customers are close to your store and you’re notified of their presence. Sending your new products to them, free giveaways and discounts, will definitely get them to consider your store
• You can create precisely targeted high-quality content more easily. Producing high quality content will always be imperative when trying to improve your marketing success. When you cast a very wide geographical net for your content, it is automatically less likely to resonate with so many different audiences, from so many different locations. Geofencing marketing encourages more precisely aimed content.
• Geofencing marketing is cheap and effective. If your marketing team isn’t using Mapsted’s location-based marketing solution, then prices may be higher. But, with Mapsted’s location-based marketing solutions, businesses don’t have to worry about spending money on additional marketing hardware such as Bluetooth beacons or WiFi routers.
• Integrate your offline business to your online presence. With geofencing, you can notify passersby to look you up on social media for better customer engagement. Essentially, it serves as your gateway to your social media and internet identity.
• It proves real-time analytics. Good marketing requires TWO way communication between customers and marketers. Geofencing makes it a lot easier and more effective because it notifies you as soon as a customer enters your marketing region.
• Geofencing marketing allows for timely content delivery. Successful marketing teams use the best indoor positioning systems which are equipped with geofencing technology. It makes it easier to get the word out to the customers most likely to take advantage of limited-time offers at your brick-and-mortar store.
• A geofencing marketing strategy can enable your brand to deliver more personalized experiences to customers. The data gathered from a geofencing marketing campaign can help your marketing team develop content and promotions that align more closely with your targeted customers’ preferences, needs, goals, and interests.