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Do You Need to Use Geofencing for Marketing?

Geofencing for marketing is not a new concept, but it seems to be picking up a lot of traction as we move into 2020. Let’s talk about how it works and why you might want to use it for marketing.

 

What is geofencing?

 

Geofencing is a form of hyper-targeted, mobile marketing. It allows you to create a boundary around your business and send a message to potential customers when they enter that “geofence”.

 

How does geofencing for marketing work?

 

Geofencing uses GPS, Bluetooth or a beacon to set up the geofence, or boundary, around your business. Once a potential customer enters that boundary, you can send a text message or app notification to that person’s smartphone or mobile device.

 

To set it up, you need choose a geofencing platform. Naturally, you have a lot of options. Both Simpli.fi and Cidewalk have great reviews; some larger digital marketing agencies also offer this service.

 

Keep in mind that geofencing for marketing works best when the boundary is pretty compact – no more than four or five minutes by foot or car from your business.

 

You can also geofence a competitor, which is pretty cool. If you’re a yoga studio, you can put geofences around the other three yoga studios within five miles of your location.

 

Obviously, if you get too broad with your boundary, you’ll end up sending out too many irrelevant messages – and you’ll probably piss a lot of people off.

 

Who should consider using it?

 

Any local B2C company with a bricks and mortar location can use geofencing – think retailers, restaurants, bars, salons, spas, etc.

 

And no, you won’t damage your reputation by using geofencing. It’s actually a great way to find new customers: 53% of shoppers visited a store after receiving a location-based alert (yahoo.com).

 

How can you use it?

 

Start with one of these ideas:

 

  1. Send a coupon code to new or existing customers.
  2. If you have a loyalty program, push rewards to customers’ smartphones.
  3. Ask for feedback or reviews on Yelp and Google.

 

As your B2C business prepares for 2020, definitely consider geofencing to reach new customers and encourage repeat business.

 

Photo by Jon Tyson on Unsplash

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