Growing your in-house marketing team can be costly and limiting, especially if you need a scalable marketing solution as your business grows.
It's early in the morning. You're driving groggy and still wiping the sleep from your eyes. You have a few minutes before you're due in the office, and you want a pick-me-up — but you're not sure where to go. A promotion from a nearby coffee shop pops up on your phone; they are offering a 50% discount on your favorite latte. Without hesitation, you drive to the shop and place your order.
This scenario is geofencing, a location-based marketing technique.
Geofencing is a technology that creates a virtual perimeter around a real-world geographical area. Geofencing is typically leveraged as part of a mobile marketing strategy and makes use of GPS data to trigger certain marketing actions. It stimulates interest and drives engagement within a predefined radius around a specific physical location. For example, when a prospect enters or exits a store, the store's app may deliver a targeted message to him triggered by geofencing parameters.
There is a difference between geofencing and the use of "beacons." Beacon marketing makes use of battery-operated Bluetooth devices that can typically trigger responses within 50 meters or less. Beacons are great for in-store marketing. For example, when a prospect enters a store, a beacon may enable a shopper to pull up product information on a nearby item, send special promotions to his phone, or even enable access to a product locator tool. On the other hand, geofencing is typically less precise as a proximity detector but has a much greater reach.
There are several possible marketing uses for geofencing technology. These include the following techniques:
No two businesses are indeed exactly alike. However, the answer to the question "Do you need geofencing" is a resounding Yes if one or more of the following conditions apply to your company:
Geofencing can enhance the consumer's shopping experience, thus fostering customer satisfaction and brand loyalty. It can deepen the level of personalization in your marketing initiatives. It can also optimize your mobile marketing strategies and generate increased sales through unplanned and impulse purchases.
If you haven't already invested in geofencing, it's time to seriously consider doing so. Many businesses have found that location-based marketing is relatively cost-effective to implement and yields a high ROAS. If your business regularly engages in event marketing, has one or more physical storefronts, or makes liberal use of mobile marketing techniques, then geofencing should be your next big investment.