Why Use Geofencing Marketing?
Geofencing is something new to marketing but is starting to show many benefits and this is why businesses are already turning to it for help. If consumers are near your retail store or if you want to give discounts to people especially those who have just come from your competitor’s store, then you can send them personalized messages to attract them to go to your nearby store. If you add location data in your ad data, then you can greatly increase your conversion. Using RFID and GPS brands can help target minute locations like buildings and street. You can even display messages to people within a definite radius.
Geofencing is setting up virtual boundaries around a specific location to cause an action when someone enters or leaves the target location. When the targeted message is delivered as soon as a potential customer crosses the fenced location, then that is where the marketing part comes in. Geofencing uses RFID. GPS. Bluetooth, etc technologies. You can identify locations with these technologies. Mobile apps are also used like messaging apps to make possible the distribution of targeted messages. Many businesses can benefit in many ways by leveraging this technology. Here are some of the benefits of geofencing for businesses that will use this type of marketing.
If you personalize your marketing messages based on the location, you can target people in the vicinity of your store. More and more people can be targeted to be led to your outlets. Targeting and personalization of marketing messages are improved.
If you give your customers attractive offers at the right time, then they will engage with your brand on mobile. This will give you better engagement with consumers which can help increase brand loyalty.
If you use geofencing marketing, then you can send offers to people who are very near to your store. You can then easily analyze the response and effectiveness of your campaign. You can then also easily optimize your marketing efforts to improve your ROI.
Since this is highly personal and targeted, it improves the efficienc of location-based marketing. If you deliver specific offers to people based on their location, then you improve the impact that your communication creates on the buyers.
Important data like which stores are performing well, which stores should expend, which target segment is more approachable, etc, can be achieved if you use location-based marketing.
Geofencing uses four mobile technologies to identify location and implement algorithms based on boundaries. If you compare these technologies, you will be able to find the best option for your business.
One such technology is WIFI technology which is a standard feature in all smartphones and has a good potential reach.
If you are going for tracking precision, then go for RFID. It does not require any extra effort from consumer. For communication, this is battery friendly.
Used outdoors, GPS has good precision and is cost-effective.
Bluetooth beacons help identify locations of all devices within the signal radius using Bluetooth and location.