Maximizing Marketing Impact with Geofencing Technology

Geofencing has become a popular tool in location-based marketing and advertising. It functions similarly to a picket fence, but not to keep people out. Geofencing marketing has a lot of untapped potential as it enables marketers to trigger a remote action on a user's device when they enter a geofenced area, whether it's a welcome message, pop-up advertisement, or navigation link when users are near points of interest.

Traditional geofencing marketing uses existing technologies like Wi-fi, GPS, and RFID to remotely trigger desired responses from recipients. The deployment of IoTs in crowded spaces has significantly improved the contextual experience, a topic we will discuss later in this article. However, before we delve into that, let's explore what geofencing technology is through an example.

As users walk by a mobile store, their phone receives a notification with a reminder that reads "Today only! Trade in your phone and receive an additional 20% off." This serves as an effective nudge to encourage those who are still unsure about making a purchase to open their wallets.

Here are several ways in which marketers can use geofencing technology to reach out:

• In-app pop-ups

• Social media ads

• Emails

• Scan and go codes

What Makes Geofencing Relevant In Marketing Today?

The beauty of geofencing technology is that it is versatile and can be utilized by anyone looking to nudge a customer for marketing purposes, regardless of the sector. It also enables marketers to discreetly operate in competitor spaces and potentially capture their customers. No matter where geofencing is employed, it generates a significant amount of data that can be extremely valuable to marketers.

A report by Reveal Mobile indicates that in industries where marketers invest heavily in geofencing, the average click-through rate (CTR) for non-geotargeted audiences is 1.5% in retail, 1.2% in beauty, and 1.0% in fitness. This highlights the significant value of targeting location-based audiences.

Mapsted, a Canadian company, has introduced a unique geofencing technology that is tailored to assist brands in enhancing their marketing efforts, ultimately driving awareness and sales. Unlike conventional geofencing systems that rely on GPS, Wi-Fi, and RFID, Mapsted eliminates the need for hardware by utilizing IoT sensors to achieve exceptional precision in meeting specific marketing goals. By leveraging geofencing marketing data, Mapsted facilitates the connection between brands and their potential customers through contextual messaging, enabling the delivery of exclusive offers, product information, and loyalty rewards to improve engagement and sales.

Geofencing: The Crucial Technology in Location Marketing

Here we’ll discuss how geofencing is making a big impact on location marketing.

• Geofencing technology offers a solution to a longstanding challenge faced by marketers, which is the need to ensure their messages reach the right audience. By targeting a specific group of people within a geographical location, geofencing technology helps set the stage for engagement and allows marketers to use effective offers that will resonate with their customers. This, in turn, helps to maximize the impact of advertising budgets and generate revenue more efficiently.

• Geofencing technology can give your brand an advantage in a competitive market where you and your competitors are targeting the same potential customers. By using geofencing, you can attract prospects to your brand by getting in front of them before they have a chance to explore other options. The responses you receive from prospects can be analyzed to gain valuable insights that will help optimize your marketing campaigns. Through geofencing, you can access a range of data points, such as foot traffic, dwell time, and conversions. By consolidating this data, you can gain a clearer understanding of your prospects' preferences and biases, which can be used to contextualize your ads and improve their effectiveness.

• As an omnichannel marketer, you should not overlook the potential of geofencing technology. By using geofencing, you can engage with your potential customers across a variety of channels that they frequent, and guide them toward your sales funnel.

• Geofencing's effectiveness in engaging mobile users makes it a versatile tool with applications beyond the realm of marketing, particularly in the field of wearable technology. Geofencing can be used for pattern detection, targeted advertising, traffic management, and enhancing the safety and security of individuals within a confined space.

Final Thoughts

In conclusion, geofencing technology has revolutionized the way businesses approach location-based marketing. By enabling marketers to target specific audiences within defined geographic areas, geofencing offers a powerful tool to engage potential customers in real time, leading to increased engagement and higher conversion rates. Geofencing's broader applications outside of marketing, such as pattern detection and ensuring safety and security, have further cemented its place as a versatile and indispensable tool in the tech industry. As technology continues to evolve, geofencing is poised to play an increasingly important role in shaping the future of location-based marketing and other related fields.