Have you ever wondered how companies can send you a deal as you walk by their store? It is called geofencing, which, in a nutshell, is live targeted marketing! It’s a smart and effective way to reach people based on where they live. But what does geofencing mean? Let’s take a look at what our marketing experts say about it.
Geofencing: What is it?
GPS, Wi-Fi, or cellular data can create a virtual perimeter around a specific location. This location-based technology is called geofencing. Some people can get alerts, ads, or other digital content on their phones when they enter this area. Sephora, for example, uses geofencing to inform customers about sales and events when they get within a certain range of their shops. It’s like a digital fence that generates marketing content like ads when someone walks through it.
Geofencing for Mobile Advertising:
Mobile devices are the current strategy of geofencing. With everyone glued to their phones, mobile advertising has become more important than ever. Geofencing mobile advertising sends ads directly to users’ phones when they are near a specific location. This isn’t just only about targeting someone in a city. Instead, geofencing mobile advertising reaches them when they are in a particular store or even standing in a specific aisle in that store.
For example, Burger King launched a geofencing campaign called the “Whopper Detour.” They geofenced McDonald’s locations and offered anyone who was within 600 feet of a McDonald’s a Whopper for just a penny if they ordered through the Burger King app. This clever use of geofencing not only drove traffic to their app but also took business directly from their competitor. This is how geofencing makes mobile advertising more personal, effective, and relevant.
Geofencing in Marketing: How to Set up
Setting up geofencing marketing isn’t nearly as complicated as it sounds. However, we recommend always consulting a professional. The first step is to define your target area. This could be a single-store location, a neighborhood, or even a city. We always recommend a smaller, 4-5 mile radius. Next, you need to decide what action will trigger the ads or marketing content. The triggers can be entering or leaving the geofenced area. You need to identify your target market and compose your Call-to-Action messages. The CTAs should be short and catchy. For example, for an ice cream store, you can run a special that says ‘Get Free Toppings with Your Icecream’ or ‘Buy one, Get One Free!’.
Let’s take the famous multi-brand store Nordstrom as an example. Nordstrom used geofencing to send push notifications to customers near their stores. They also combined this with information about their loyalty program and offered personalized promotions based on past purchases. The result was a significant increase in customer engagement and in-store sales. Therefore, setting up geofencing for your business’s physical location can increase your sales and brand visibility.
The Real Perks: How Geofencing Helps Your Business
Targeted Marketing:
One of the biggest perks of geofencing is its precision. Instead of sending out generic ads to everyone, you can tailor your messages to people near your store or a specific location. For example, if someone is walking by your coffee shop, you can send them a special offer for a free latte. This helps you connect with potential customers who are more likely to buy from you at that time.
Increased Consumer Engagement:
Because geofencing targets people based on their location, the messages they receive are exactly what they want to see. This relevance leads to higher engagement rates. If a customer gets a personalized discount while they’re near your shop, they’re much more likely to visit. It turns a simple walk past your store into a potential sale.
Better Consumer Insights:
Geofencing also gives valuable data about customer behavior. Your marketer can track the number of people who visit your store after receiving an offer, how long they stay, and how often they return. This information helps you understand what works and what doesn’t, allowing you to improve your marketing strategies.
Increased Sales:
Ultimately, the goal of any marketing expert is to increase your sales. Geofencing helps with this by encouraging immediate visits to your store. The special offers and promotions you send out can easily invite people to purchase, leading to higher sales and revenue.
Advertising Platforms for Geofencing:
So, how do businesses set up geofencing marketing? Geofencing can be done on any platform that allows advertising. It can be Google Ads, Facebook, Instagram, TikTok, X, or even LinkedIn. These platforms help businesses create, manage, and analyze their geofencing campaigns. They also provide tools like Google Ads Manager and Meta Business Suite to customize ads, set budgets, and track your ads performance.
For example, Dunkin’ Donuts used the Simpli.fi platform for its geofencing campaign. By setting up geofences around their store locations and targeting competitors, they sent personalized ads to customers who had previously visited other coffee shops. The platform allowed Dunkin’ to see which locations performed well and manage their campaigns accordingly. This data-driven strategy optimized their marketing and also increased foot traffic to their coffee shops.
The Future of Geofencing:
Geofencing is more than just a trend in marketing. Our experts believe that it is actually the future of local or neighborhood marketing. As technology evolves, geofencing will become even more precise and effective. With the rise of smart devices and wearable techs such as smartwatches and rings, businesses now have even more opportunities to reach their customers. Whether you are situated in Austin, Texas, or thinking of opening your store in Portland, Oregon, geofencing advertising is a brilliant way to headstart and build your local and loyal consumer base.
Geofencing is already making a splash in local marketing all over the US. It strategizes your ads so that you target the right audience at the right time, in the right place, and with the right words! At bmymarketer, our geofencing experts can create and automate this whole process so you can never miss a potential customer walking by your store. There i really no better and stress-free way to market yourself in your postal code. Pick up your phone and call us to see how we can multiply your ROI in just a few days!
