Geofencing marketing is a type of marketing focused on a specific geographic area. Essentially, your marketing company will create a geographic area and create digital boundaries to control where your message is available and where your marketing dollars are spent.
This targeting marketing will work to make your marketing efforts more focused and efficient by ensuring the message concentration is in your target market area. This type of marketing will also allow you to save money on advertising as you will only be spending advertising money within specific boundaries.
For example, let’s say you run a small yet successful lingerie business. You do not rely heavily on print advertising due to the sensitive nature of the products you sell. However, you are just one location, and you want to build a relationship with your customers.
This year, you want to do a big promotion for Valentine’s Day. You want to show people how to get the most out of the day with their special someone with some spicy lingerie and gifts. You can plan out your entire promotion and utilize geofencing marketing to promote within an area where people could easily travel to your store.
Getting customers to go to your retail location allows you to interact with your customers, increase sales through upselling, and build customer loyalty through excellent service. The core of your business is repeat customers, so when you acquire new customers, being able to interact with them personally is essential to your overall growth.
Geofencing marketing is ideal for physical businesses that do not rely on online sales. It is also suitable for physical stores that depend on people going to their location, such as a business that provides an activity but is not a national chain. However, this type of marketing can be useful for a wide range of other companies as well.
When running a business, it is vital to understand who your market is and how you can effectively reach them. For example, a small-town business can benefit significantly from sponsoring local youth sports or school events because it provides them with strong local name recognition. Running a business that targets senior citizens means your efforts will be most effective marketing through print advertising in local papers and local events, senior groups, and vendor fairs.
There are many different avenues for marketing, including print advertising, digital advertising, radio or TV advertising, as well as marketing efforts like sponsorship and naming rights. The effectiveness of your marketing efforts will depend on the best ways to reach your target market, which is the basis of creating a marketing plan.
Geofencing marketing is one of many ways to make your marketing efforts more effective. While it may not work for national companies due to their need for a widespread message, it is highly effective for local and regional companies that would be wasting money spreading their message too far.
Strictly online companies can use geofencing marketing to run specific ad campaigns targeting particular areas. This strategy will also help them determine where the majority of their customers are coming from and which ads are the most effective in reaching those customers. You can do A/B testing based on geographic areas, as opposed to ad styles.
While this may seem complicated, as a business owner, you do not need to understand everything about geofencing marketing or how to make it work for your company. There are marketing companies that specialize in these services to help you grow your business and develop a strategy that is best for you based on your company goals. Each company is unique, with unique goals and values.