What is Geofencing?
Geofencing as the name suggests refers to setting up virtual boundaries (fencing) around a specific location (geo) to trigger an action as soon as someone enters or leaves the target location. The marketing part comes in when a targeted message is delivered as soon as a potential customer crosses the fenced location. Geofencing uses technologies like radio frequency identification, GPS, and Bluetooth to enable location identification. It depends upon mobile apps like messaging applications to make the distribution of targeted messages possible. By leveraging this technology many businesses especially retailers can benefit in many ways. Here are some advantages of using geo-fencing for retail marketing.
Benefits of Geofencing in Marketing:
Better Targeting:
By personalizing your marketing messages based on the location you can target people in the vicinity of your store thus increasing the possibility of attracting more people to your outlets. This ensures improved targeting and personalization of marketing messages.
Engagement:
Consumers are more likely to engage with your brand on mobile if your app provides them with relevant offers at the right time. This ensures better engagement with the consumers and in turn increases brand loyalty and advocacy.
ROI:
Geofencing enables you to send offers to people who are in the vicinity of your store. This allows you to easily analyze the response and effectiveness of your campaign and makes it easy to optimize marketing efforts for better ROI.
Efficiency:
Location-based marketing is highly personal and targeted which improves its efficiency significantly. By delivering specific offers to people based on their location you improve the impact that your communications create on the buyers.
Overall Geofencing is great technology at the disposal of marketers. It enables them to upgrade the level of personalization they provide in marketing. Many companies have successfully used geofencing to provide target offers to their potential buyers.
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