What is geofencing, geotargeting or Location-Based Marketing?
Geofencing is a feature used by software programs to define geographical boundaries or geofences. While some geofencing applications use Google Earth, others rely on web-based or user-generated maps.
What is a geofence?
A geofence is a virtual geographic boundary created by a software program that recognizes the presence of a smartphone when the user is within its boundary. Through Geofencing, the software is able to detect the user’s entry, exit and duration of stay.
More than 50% of users in the US download zero apps per month according to Statista.
Once a brand does get a consumer to download your app, keeping them engaged is the hard part.
By leveraging the power of geofencing, users benefit from contextual notifications and brands benefit from increased customer retention and loyalty.
Location-based marketing in simple terms means communicating with potential customers within a range. Let’s say, a coffee shop runs a campaign to introduce a new almond-flavored Cappuccino on their menu. Setting a location-based marketing campaign would mean that all potential customers in the range of, let’s say 1 mile, are notified about the new coffee. This might also include reaching out to a user in the nearby ice-cream store.
This is done by calculating the latitude and longitude of the smartphone using GPS or cell tower triangulation method. It is hence defined as the kind of marketing that uses mobile to target customers in a particular geographical area.
Geofence is a virtual boundary that can range from over 300 feet to a mile to anything else. Ideally, for interactions above 200 feet, business owners must consider geofencing.
Set up a geofence as small as 200 m or as large as 2 km
Create and schedule campaigns – notifications, landing pages, custom URLs or forms.
Add gamification to your marketing efforts by implementing Gamified Coupons.
For a chain with several stores, geofencing makes it easier to roll out location-specific offers.
By creating a geofence around the competitor’s store, marketers can gather analytics about users who visit both stores and send them an enticing offer to gain their business. Burger King’s 1 penny Whopper campaign had users go all the way up to their nearest McDonald’s and order the Whopper from the app.
The analytics gathered from the app can help marketers better target particular audience segments. If the app usage indicates that a certain segment visits the store only on weekends, marketers can send them personalized offers when the weekend starts.
Generate Store visits, trigger conversions, and boost your sales by offering appealing discount Coupons to your audience.
Accept payments through Digital Vouchers. The customer receives proof of the purchased value or unlocks a discount Coupon.
Start a digital loyalty program to stimulate people to come back to your business and reward repeat purchases.