Geofencing is one of the most exciting new technologies available to digital marketers: it’s a location-based service that sends content, messaging and promotions to smartphone or mobile device users who enter a certain geographic area. When smartphone users enters a geofence, they can potentially receive targeted ads on websites or apps they visit on their mobile device.
Geofencing has become a powerful marketing and advertising tool. As mobile apps and advertising continue to grow in popularity, geofencing enables marketers to distribute location-specific ads and promotions to customers on their mobile devices.
Here are five ways you might apply geofencing to increase your marketing ROI:
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Increase in-store awareness
HillShire Farms used geofencing combined with beacon technology to speak to consumers on their mobile devices as they entered a store. This digital programming messaging initiative delivered a 20x increase in purchase intent by those exposed to messaging, which is a 500% increase over the consumer packaged goods average for mobile ad engagement.
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Steal Share
Dunkin’ Donuts used geofencing marketing to apply location technology around competitors’ locations, coupled with behavioral targeting, to deliver coupons on mobile devices. The results? 36 percent of those who clicked on the offer took a secondary action, 18 percent saved the coupon and 3.6 percent of secondary actions resulted in a redeemed coupon.
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Grow sales, even if your store is closed
Use geofencing to lead the way to new locations. Ashley Stewart, a West-coast clothing retailer, used geofencing around recently closed locations and redirected customers to new locations nearby.
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Become a timely reminder
Remind customers of common tasks and purchases at just the right moment. The Walgreens app has adopted Apple’s Passbook feature which uses geofencing to remind users to refill or pick up their prescriptions when they enter a Walgreens store.
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Deploy the ultimate Limited Time Offer
Geofencing gives you the opportunity to offer very limited time offers with expiration dates of minutes instead of weeks. Edgy Guatemalan sneaker retailer Meat Pack used geofencing technology to detect when a former customer entered a competitor’s retail space. As soon as the customer entered a competitor’s location, a fun,high energy promotion deployed, offering a 99% discount. The discount percentage decreased one percent each second until the user entered a Meat Pack store. That discount could then be applied in-store. Meat Pack’s geofencing promotion drew more than 600 people from rival stores, and the fastest person to get there managed to receive an 89% discount.
To learn how Geo Fencing can benefit your business and increase the flow of foot traffic, contact us here at FMDi, today!