Wondering how to use geofencing to collect information? Consumers are bombarded with promotional messages and other forms of digital advertising. Unfortunately, in most cases, the content targeting customers isn’t actually tailored to them and their interests. This translates into poor return on investment for marketers.
How bad in the ROI? While social media spending has increased by 61.5 percent, the click-through rate has fallen to just 0.5 percent.
One solution to this problem is geofencing. But while the core idea is to establish a virtual fence around your business, the technology is more useful than just that. If your business has yet to embrace the use of geofencing, now is the time.
As noted above, geofencing is a virtual fence placed around your business. You can set the parameters of the fence in various ways. You might opt for a specific radius of the store, draw the borders of the fence yourself, or even have it set exactly to the physical location of your store, giving users promotional messages as they step inside.
Geofencing allows the marketer to deliver content based on location. They can send the same message to all people within the fence or even change the messages as the person gets closer to a specific point. Any smart device can receive messages controlled by geofencing, including smartwatches. Laptops and desktops can also be targeted.
Geofencing technology can send messages to customers in a variety of different ways. Push notifications, social media ads, and text messaging are just three of the possibilities. And since the technology is more or less in its infancy, you can expect new methods to arise.
This technology has a significant reach. The majority of the US market uses smartphones for the cellphones, and 92 percent of those smartphones are compatible with geofencing technology. The end result is that this type of marketing can reach the majority of the targeted audience with ease.
There is a lot that influences what marketing materials are effective on a given person. However, location is a very big factor. With geofencing, you are given extreme control over who you target and how. For example, if your store is in a major city, you might market to those nearby by asking them to drop in, but target those in outlying areas by encouraging them to make your store a stop on their next trip into town.
With geofencing, you can also run time-bound promotions with greater ease. Since you can target those close enough to get to the store quickly, you can have flash sales that are as short as a few hours. This helps you give customers a sense of urgency and increase the likelihood of them taking action.
Ultimately, geofencing allows businesses to better target customers based on their location, which changes the way they can market.
Another benefit that businesses must consider is that geofencing allows businesses to collect customer information. This information can include everything from the demographics of the customer to their specific interests. Through this, businesses can learn more about their customers and further tailor their ads to increase their effectiveness.
Does your business use geofencing to collect information? How has it benefited your bottom line?