A geofence is a dynamically generated virtual boundary that is set up around a real-world geographical location. Geofencing, on the other hand, is a location-based service that uses RFID, GPS, Wi-Fi, or cellular data to trigger a pre-programmed action. This geo-tool is used by businesses to engage their audience when they enter or exit a geofence. You channel advertisements to target customers within a given radius via mobile marketing tools. For instance, a restaurant can use geofencing technology to alert passers-by of the day's specials, and a store can advertise it's latest arrivals to nearby shoppers. 

Benefits Of Geofencing In Marketing And Advertising

1. Gain a competitive edge

Make use of geo-tools to gain a competitive advantage in the market. You can set up a geofence around a competitor to encourage shoppers to visit your store for better deals. The trickle-down effect is more consumers will download your app, generating higher local sales. A geofencing alert can prove effective if consumers act on it. Using geofencing as a marketing strategy enables your business to reach a broader market within the specified zone. Optimize crowded areas such as educational institutions, events, and trade shows for better results. 

2. Better targeting

Geofencing tools for location-based marketing is targeted, therefore, you boost your brand when you connect with a local audience. You connect with prospective customers who are most likely to transact with you. A strong local following will grow over time, expanding your business. Plus, you can create additional geofences if you have multiple retail locations.

3. Enhanced customer experience

Personalization is vital for a successful marketing campaign. With increasingly more companies utilizing geofencing strategies, the market is flooded with hundreds of advertisements. To stand apart from the crowd, ensure you have tailored offers that are relevant to your audience's interests and needs. This increases the chances of consumers engaging with your brand or visiting your store. 

4. Cost-effective

Geofencing marketing enhances localized campaigns. When you advertise to the local market, you increase conversions and expand your brand. You, therefore, cut costs that could have been expended in running extra marketing and advertising strategies. You are assured of the greatest possible outcome for your pay. 

5. Better data

Local sales are difficult to measure as it is impractical to survey every customer who walks into your store. But if you have geofencing, you can collect metrics to add depth to your analytics. You obtain valuable information about traffic patterns, duration a customer stays in your shop, and the effectiveness of messaging. After an analysis of such data, you can predict consumer behavior.

Food For Thought

Consider geofencing to increase your brand's conversion rate. You define the radius the target message is displayed, increasing the probability of luring customers to your physical store. A well-designed geofencing marketing campaign will help develop your brand's local following over time. If you are trying to drive traffic to your brick and mortar business, consider geo-tools to generate convertible leads. Remember to leverage limited time offers and promotions, like coupons, to enhance the process as they invoke engagement and interest.