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Geofencing and Location-Based Marketing: What You Need to Know

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Granted that you focus on applying traditional marketing rules to the mobile sphere, taking your marketing campaign mobile can be fairly easy. Successful marketing basically comes down to whether or not you can effectively connect with your customers, and mobile tools such as geofencing have made it easier than ever to establish a connection. Thanks to mobile app development companies, businesses can now strategically target their marketing campaigns by location and demographic – leading to better and more profitable results than previously available.

Mobile applications build an intimate relationship with their users, and therefore delivering content which is location-based is ideal for providing relevant content in general, as well as leveraging that relationship to increase brick & mortar visits. Two standard methods are available for delivering geo-centric content – the geofence and geo-targeted push notifications.


Geofencing Basics

app development companies cocoa beachGeofencing allows you to draw a virtual fence around any address or point of interest and automatically send a notification when a customer crosses that line. Whether you’re a small business owner or a huge corporation, you can use this technology to grab a customer’s attention before the competition.

Here are a few things to keep in mind to run a successful geofencing campaign:

1. Location – Geofencing technology allows you to circle an area as large or as small as you want. This flexibility is great because you can tailor your campaign size depending on the product you’re pushing. For example, Dunkin Donuts might only want to create a geofence around areas where its products are available, so the geofences could be tighter and spread throughout a region. If a Coca-Cola is featured at a concert festival, the company might circle the larger, concentrated area where the festival is. A brand like Wynn Las Vegas, a resort and casino based in Las Vegas, could circle their hotel, or they might geofence the Las Vegas airport to entice visitors to come to the Wynn the second they land.

2. Message – Get in the mindset of your consumer; if you received a push notification, what would it have to say to make you go visit the store? What’s the incentive for consumers to accept your notifications? Make sure your messages are brief, and promote an action as opposed to an ad.

3. Frequency – Keep pop-up notifications to a minimum. Don’t pile irrelevant messages onto a consumer’s phone every time he enters your area. Every business is different, but typically one notification per week will suffice. The more relevant the messages are, the more likely consumers will be receptive to more messages.

This location-based targeting tool goes beyond cool technology; it enables marketing that actually works.


Why Geofence?

cape canavral app development companiesWhen successful, geofencing is a win-win; your consumers receive a special offer, while you receive data of where they’ve been and what they’re interested in.

According to a recent survey;

  • 39% of participants who signed up for location-based messages indicated that the message influenced their purchasing decision
  • 68% indicated that they will likely sign up for future location-based campaigns
  • 78% somewhat or strongly agree that mobile campaigns have the ability to influence consumers’ decision to visit stores triggered sales per transaction were larger than average transaction sales

By sending your customers a time-specific, location-specific push notification with a special offer, geofencing allows you to increase both open rates and redemption rates, which can lead to an increase in overall sales.

Moreover, 68% of participants said they would continue to sign up for location-based campaigns. Geofencing can lead to brand loyalty because customers find use in the tailored messages and offers they’re receiving.


The Bottom Line

Geofencing is a great tool to send relevant marketing messages to your consumer. If used effectively, its specificity allows you to increase open rates, redemption rates and sales, and can lead to greater brand loyalty.

What might be a creative way for your business to utilize geofencing in your mobile marketing campaign? Where might you circle, and what notifications might you send? Let our mobile app company help you – by commenting to let us know what you’re thinking!


Check Out – 11 Reasons Why Your Business Should Have a Native Application Before 2016


Michael Callahan
(321) 676.8714 o.
6050 Babcock St SE
Palm Bay FL, 32909



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