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Geofencing marketing is a proven way to boost brand visibility, in-store traffic, and sales. But do you know how the strategy works? Refer to our new blog.
In my last post, I introduced you to the concept of geofence and how it aligns with your marketing initiatives! Today, I will walk you through the details of geo fencing . Here you will get to know how it works in favor of businesses, seeking better leads, faster conversions, and overall growth. So let’s begin.
First, let’s start with a quick recap of geofencing.
Geofencing marketing technique is based on the simple fact that wherever a person goes is the indicator of their buying intent. It is the act of placing virtual parameters around a physical address.
In addition, geofencing helps you generate a target audience from the people visiting a specific place. You can gather data from the mobile devices entering the geofence. Further, you can use the same data to create personalized ads and serve them to the people with strong buying intent. The ads can be targeted display ads on websites and apps or connected TV commercials.
Now, let’s get into some details.
Significance of Target Zones & Conversion Zones in Geofencing
Location is the key in geofencing marketing. Hence, when you choose this marketing strategy, you need to deal with two types of locations:
- Target zones
- Conversion zones
Target zones are places you can geofence to build a database of potential customers. These locations can be: your competitor zones, shopping malls, office buildings, events, business addresses, residences, sporting events and concerts, conventions, airports, train stations, bus stations, etc.
On the contrary, the conversion zone is the advertiser’s address, meaning your business address. With geofencing, you can track people visiting your store after receiving the ads. Simultaneously, you can also assess the potency of the marketing strategies and measure the ROI.
The idea is to drive people from the target zones to the conversion zones, leading to:
- Increased foot traffic
- Enhanced brand visibility and awareness
- Better customer engagement
- Significant increase in sales
Therefore, if you want to attract potential customers to your conversion zone, make sure you select accurate target zones.
Contact us, and our experts will help you determine the same.
How Geofencing Marketing Works! Check out the examples for better understanding.
Geofencing uses RFID, GPS, GPRS, or cellular data to virtually mark a zone. An example will help you better understand how geofencing marketing works.
Suppose you run a coffee shop specializing in craft coffee. It’s obvious that you want to increase the customer footfall. With geofencing, you can easily meet your business goals.
First, you can set up geofences around nearby markets, gas stations, shopping malls, and office buildings. It is because potential customers often prefer visiting these places. Therefore, when you target these diners nearby your cafe, you can easily drive them to your location. Indeed, geofencing will make this a reality.
How does that happen?
Make sure that you have geofenced the nearest office building. As a result, employees entering the building will receive ads about your café. These ads will encourage them to visit your address for their coffee cravings. Besides, you can even serve them with special offers, coupons, etc., to influence their buying intent. Usually, businesses uses the same technique for other locations.
However, the ad content may change depending on your target audience. You can ideate creative ways to connect with the audience and nudge their interest.
Here is a real-life case study of a big brand
Global transport company, Uber, leverages geofencing marketing. It sets up virtual parameters around transport hubs like airports, bus and train stations, hotels, nightclubs, malls, etc. Evidently, their LAX case study is the most famous.
Modern travelers usually check their phones after getting off a flight. Keeping this in mind, the company started sending digital ads to fulfill the traveler’s transportation requirements. As a result, the company generated billions of dollars in revenue. The transport company abides by this strategy to date.
Wrapping Up!
Like Uber, you can also change the fate of your business with geofencing marketing. So, are you interested? You can check out different industry-specific geofencing strategies here.
For more details or a direct discussion about your marketing requirement, feel free to reach me. You can contact me via email at chris@getgeofencing.com or call at 866-951-0330. Stay tuned for more insightful reads on geofencing.
