Location-based technology is fast becoming all the rage amongst marketers who have seen the value in what it can do. Geomarketing is a buzz word in the industry right now, and even though geotargeting has been around for quite some time, the increase in accurately targeting highly qualified leads makes it an even more valuable marketing tool than ever before. But what does it mean and how can it benefit a marketing strategy?

We delve into the definition of geotargeting and how brands can leverage this exciting and valuable technology.

What is Geofencing Marketing Technology?

Geofencing is a process using a geofence to locate and target prospects. The system uses global positioning (GPS) or radio frequency identification to define a location. A geofence is a virtual perimeter identifying an actual location or geographic area – just think of it as a virtual fence that comes in a variety of shapes and sizes.

Businesses use this service to engage their audience by sending targeted customers information and messaging relevant to their pre-defined location or geographic area. This is achieved by various identifiers like IP range data.

How Can Marketers Benefit from Geofencing?

In today’s information age, it is difficult for marketers to keep users engaged and interested. Marketers must find a way to be seen and stay ahead of its competitors, especially on the digital landscape.

Users only respond to what is relevant to their current situation and geofencing assists with providing users with just that, helping marketers to adapt communications to the needs and interests of the users at a specific time and in a certain location. Moreover, customers benefit greatly from geofencing as it makes the buying journey even more convenient.

Geofencing can be useful to marketers in the following ways:

  • It allows marketers to gather insights on the offline behaviors of users, which can be used for audience segmentation, retargeting, personalization of messaging, and more.
  • Send relevant content to mobile users based on location, whether it is current or recently visited. This helps drive engagement with the customer.
  • Since customers are the major source of revenue for any business, delivering the right information to them via geofencing personalizes the buying experience. According to research by Experian, personalized emails have a great effect on open rates and click rates. So, geofencing does not only help to retain customers but attract and acquire new customers as well.

What About Privacy Concerns?

Since geofencing relies on a customer’s location, natural concerns and questions about privacy will come up. Here are some things every marketer should know in this regard:

  • In order for geofencing to access a user’s location, it needs permission to share location data. If a customer declines this option, their location cannot be tracked. Customers can also revoke this permission after they have accepted it at a different time.
  • Explain to customers why location access is important, if they will be willing to share this information and what this information will be used for. Transparency builds a bridge of trust with customers.
  • That said, the reason for accessing a customer’s location must benefit the customer and his/her buying experience.
  • Security is important – make sure to provide security and have privacy policies in place to keep customer information safe. Assure this to all users.

Is Geofencing the Way to Go?

Geofencing may not fit every company’s marketing strategy, and that’s ok. If a company ticks one or a few of the below statements, then geofencing may be an effective and valuable tool in every marketer’s arsenal.

  • B2B brands at tradeshows or events that want an additional online presence during show dates.
  • B2B brands looking to gain enterprise clients may benefit from bid adjustments over target client headquarters.
  • Professional Services and HealthCare groups that want to attract visitors right in their backyard.
  • In-Home services that need to broadcast a message after a storm.
  • eCommerce companies that offer a safe and easy pickup service nearby as well.
  • Any brick and mortar company looking grab attention in their vicinity

Getting Started with Geofencing?

So, if geofencing is the way to go, it’s time to get started. Marketers new to this technology or those wanting to use geofencing in the most effective way need to consider the following:

  • Set up geotargets easily within Google Ads or Microsoft Ads.
  • Choose the right geofencing software. It is important to test the software – some may come with a testing app.
  • Implementing the software into an app will require some development work.
  • Once the software has been implemented, consider the messaging around geofencing notification campaigns. It is important to get customers on board without losing trust in the brand.

Geofencing does numerous things to boost a business. It promotes the brand, reminds customers of what a business has to offer and encourage people who have the app but never made a purchase to become a new customer.