What is Geofencing Marketing? 7 Benefits to Consider It

Online Marketing Tips, SEO

Businesses in today’s marketplace already know they need to expand their digital presence to stay ahead of the competition; casting too wide of a net, however, can backfire if you aren’t careful about your strategy. One way to ensure your net is where it should be is by leveraging Geofencing.

Geofencing is the concept of targeting your marketing efforts around a specific location. While most businesses operate online and sell to a wide range of customers across different locations, many still rely on their local consumer bases to stay in business. If you’re developing a multichannel marketing strategy for your brand, consider the potential of geofencing marketing.

Geofencing marketing is an excellent strategy if you want to bring more local customers to your door. This method of marketing focuses on a specific location instead of trying to appeal to a wider audience online.

Geofencing Marketing

What Is Geofencing Marketing?

Geofencing marketing is a method of digital marketing that focuses on specific locations. A “geofence” is the physical boundaries of a target location. It could be a specific city, a zip code, a county, or a mileage range around a physical store location. It is also possible to configure multiple geofenced marketing channels for businesses with multiple locations.

In a geofencing marketing strategy,
The marketing team develops advertisements and content tailored specifically to the consumers within the geofence. People living in New York City have vastly different needs and priorities than people living in rural Kansas, so developing content that appeals equally to both audiences would probably be an exercise in futility.

Geofencing marketing allows modern companies to more precisely target their advertising and content delivery based on specific locations so they can resonate more strongly with the people living in those locations.

Geofencing functions by targeting internet-capable devices within the specified geofenced area. When customers travel into these areas, they may receive alerts or notifications about your brand’s current offers, limited-time promotions, and events where they can interact with your brand.

Location-based marketing with geofence technology essentially creates a virtual boundary that automatically targets consumers who cross the boundary into the geofenced area. Geofencing marketing is a powerful tool that allows marketing teams to deliver their brand’s messages to the right customers at the right times.

Examples of Geofencing Marketing

Geofencing marketing can take many forms:

  • A brick-and-mortar retail store could create a geofence in the area around the physical store location. For example, a business owner could target the geofence to a 25-mile radius around the store to focus on the closest potential customers.
  • A business owner could set up a geofence intended to capture potential customers leaving a competitor’s location to entice them with more attractive deals.
  • Companies that travel for marketing events and industry conferences could erect geofences around future stops to establish brand awareness in advance of their local appearances.
  • Service-oriented businesses like law firms and healthcare providers can geofence their advertising efforts to specific service areas.

These are just a few potential applications of geofencing marketing that can have tremendously successful results. However, like any other type of digital marketing effort, it’s vital to conduct appropriate research to determine the best locations for geofences and to understand the potential return on investment that could come from this type of marketing campaign.

7 Benefits of Geofencing Marketing

Some business owners may wonder why it is important to try geofencing marketing. Wouldn’t appeal to a wider audience offer a higher return on the marketing investment by attracting more potential customers? This is a flawed approach to multichannel marketing. Like with anything else worth doing, it’s vital to focus on quality over quantity. Establishing a very strong brand presence in a smaller location is much more valuable in the long term than building a mediocre brand presence across a much wider area with a more detached potential customer base.

When you invest in geofencing marketing the right way, you can enjoy many tangible benefits that will help carry your company into the future:

  1. Keeping your geofence small means more precisely targeted marketing. When you connect with a local audience on a personal level, you inherently boost your brand’s image with those potential customers. When consumers know your brand is in touch with their local lifestyle, community, and topics relevant to the area, you create a stronger impression that increases the chances of that customer returning to do business with you in the future.
  2. You can create precisely targeted high-quality content more easily. High-quality content continues to reign supreme as the best way to improve your marketing success. When you cast a very wide geographical net for your content publication, it is automatically less likely to resonate with so many different people from so many locations. Geofencing marketing encourages more precisely constructed content aimed at a specific consumer base, ultimately building a stronger brand image for your company within the targeted area.
  3. Your brand can connect with the customers most likely to do business with you. Many companies sell online, and your brand may rely heavily on customer orders from well outside your physical store location. However, the local customers in your community are the backbone of your staying power as a brand. Your geofencing marketing efforts can help you cultivate a strong local following that you can expand over time, and you can create additional geofences if you build multiple retail locations.
  4. Geofencing marketing allows for timely content delivery. If you’re running a new promotion and want to get more customers in your door, a geofencing marketing campaign makes it easier to get the word out to the customers most likely to take advantage of limited-time offers at your brick-and-mortar store.
  5. Geofencing marketing is cheap and effective. If your marketing team is using the Google AdWords platform, your business already has the tools needed for an effective geofencing marketing campaign. Google allows businesses to set location-based parameters for their paid ads and business listings, and this functionality comes at no extra cost. You can set your paid ads to appear in international territories, within the US and Canada, within a specific region, in just one state, or a mileage radius you define.
  6. Geofencing can boost data-gathering efforts. When you target your marketing strategy to a specific geofenced area, you gather more detailed data from responding to customers than you would with a broader digital marketing campaign. When a customer visits your retail store in response to a geofenced advertisement, you can gather data about visit duration, spending, messaging effectiveness, and much more.
  7. A geofencing marketing strategy can enable your brand to deliver more personalized experiences to customers. The data gathered from a geofencing marketing campaign can help your marketing team develop content and promotions that align more closely with your targeted customers’ preferences, needs, goals, and interests.

Ultimately,
any brand with a physical retail store and a digital presence should understand how geofencing marketing works and the potential benefits of developing this type of marketing strategy. Over time, a geofencing marketing campaign helps to build a brand’s local following and credibility, and business leaders can expand their organizations physically and digitally with greater confidence thanks to the insights gleaned from detailed geofencing marketing campaigns.

Start thinking of the potential geofencing marketing could hold for your brand and brainstorm strategies for connecting with your local market in more meaningful ways.

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    Stephen Moyers

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