What Is Geofencing? 10 Reasons Your Business Should Use It

what's geofencing business geotargeting digital marketing

Around 53% of shoppers visited a retailer after receiving a location-based message. 

That proves how using geofencing in your marketing strategy can reap many benefits for your business. You may have heard the term but are unsure of what it is and how to use it.

“What’s geofencing?" you ask?

We’ll let you know alongside ten reasons your business should incorporate it. Read on to find out more about geofencing and geotargeting.

What's Geofencing?

You don't have to Google geofencing, we've got the definition here.

Geofencing creates a virtual perimeter around a real-world geographical location. This boundary is set, so whenever someone enters or exits the perimeter, anyone using your app will get a notification. 

These alerts include geofencing push notifications, texts, or emails, depending on what the user has chosen.

As a result, the user can see where your business is located. If you're wondering, "how does geotargeting work?" know the business creates a geofence through GPS, which provides accurate coordinates.   

The 10 Benefits of Geofencing

Now we understand the geofencing technology. We must discuss how it can help your business. There are many ways to use geofencing marketing. For example: 

1. Gives You Customer Insight

Every business must know their target audience, so they know who to address. 

Because geofencing is location-based, it gives you plenty of data about consumers, which you can use to your advantage. 

For example, you can track the number of metrics like how many times customers have visited your store and how often. Plus, the geofencing technology informs you of the other places they go before visiting your store.

2. Boosts Local Sales

Geofencing gives businesses an in-depth analysis of which clients are nearby, and who is more likely to make a purchase.

You can use this data to create a more effective local marketing campaign. As a result, you’ll get greater conversions because more leads will visit your store.

3. Enhances Customer Engagement Levels  

Businesses use geofencing to send targeted notifications to their customers, especially as 53% of app users agree to add their location.

And because these aren't generic, customers are more likely to engage with your brand. 

4. Saves Time and Money 

Geofencing helps many industries save time and money. For instance, if you’re a food delivery service, then geofencing will notify you whenever your drivers leave their designated area.

That means you know when employees are working, saving you time and money in the long run.

5. Motivates Customers to Spend More

Customers who have installed your app will get a push notification whenever they enter your geofenced area. That means you can send out notifications about last-minute deals. 

Restaurants, for instance, can send out push notifications at breakfast, lunch, and dinner time to entice customers. But it’s important to limit the number of push notifications you send; otherwise, consumers will ignore your notifications, turn them off, or uninstall your app.

6. Promotes Brand Awareness 

Customers may have downloaded your app, but they haven’t stepped into your store or establishment. Yet with geofenced notifications, you can gently remind users that your business has something to offer.

So whenever you have a promotion or a deal, send them and encourage customers to engage with your business. Further, don’t forget a well-timed holiday ad as they help customers find something they’re actually searching for.

7. Personalizes the Customer Experience 

Nearly 80% of consumers are more likely to make a purchase when brands offer personalized experiences. 

Using geofencing, send offers tailored to your customers’ preferences. No one wants to be bombarded with spammy marketing messages, so personalize yours as much as possible.

8. Outdo Your Competitors 

If a competitor has recently opened a storefront next door, create a geofence around yours and their store then offer a deal to anyone who goes there. 

Location-based data feels like an invasion of privacy, but geofencing has been developed to coincide with the latest privacy laws so you won’t get in trouble.

9. Use It to Display Ads 

One of the most popular ways to use geofencing is for display ads. It is where businesses add a particular IP address or specific mobile location to their ad campaign. 

When you do this, you can release display ads in a controlled manner based on a customer’s real-time location. And don’t forget social media as many users rely on it to stay up-to-date and find recommendations for services.

Create social media ads with geofencing by using the location information to display relevant ads to the right audience.

10. Makes Your Content More Impactful

You can even use geofencing in your content, especially for video or audio. For instance, location can be used to activate relevant content because of the IP address from the mobile device.

As a result, customers will see this pop up on their device and, hopefully, consume your content. But it must be relevant and add value to your consumers.  

You can also use geofencing to test your campaign by releasing different types of content and find out which one works best. 

It gives businesses the freedom to test out the copy in the ad, the color palette, and see which deals or coupons are most effective.

That's Everything to Know About Geofencing

Now you know the answer to "what's geofencing?" and the major benefits of this new technology.

Geofencing lets you communicate to customers when they’re nearby, which improves your chances of driving sales. Be creative with your push notifications and personalize them, so they’re more effective. 

And remember, avoid spamming customers; otherwise they won’t engage. Good luck on your geotargeting marketing!

Did you find this article on geofencing helpful? If so, check out our other posts on everything from SEO to Digital Marketing.

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