4 Benefits of a Geo-Fencing Marketing Campaign
Outsmarting the competition leads to increased sales. A new form of marketing, known as geo-fencing, can provide a company with the leverage required to succeed in today’s economy. Geo-fencing is a marketing technique that targets potential customer within a predetermined radius via a smartphone. The messages are sent by radio frequency identification or global positioning system software. A geo-fencing marketing campaign will benefit a company in the following four ways.
- Specified Perimeter: Geo-fencing allows a business to direct marketing efforts to a specified perimeter. The majority of purchases made by consumers are from a business with a close proximity of where the customer lives, works or along the route between home and work. The marketing budget is not wasted on sending advertisements to consumers that live or work 100 miles away.
- Location Based Alerts: Businesses may tailor messages based on customer’s interests and needs. Businesses may target attendees at a special event. For instance, a t-shirt company may offer game day t-shirts to individuals with smartphones on a college campus. A beauty supply store might send an alert to beauticians attending a hairstyling clinic.
- Target Market: Geo-fencing delivers advertisements to a company’s target market. Marketing messages may be sent to consumers that are in a competitor’s store. The message should contain an offer to compel the consumer to leave the competitor’s store and drive to the store sending the alert. For example, a home improvement store might send a coupon to customers within a 15 mile radius of a competitor offering a discount. In today’s economy, consumers appreciate value and savings.
- Timely Messages: Businesses may send advertisements at a particular time, which is most relevant for the consumer. Coupons and sales should be date specific. Restaurants may send a menu to businesses within a defined radius before lunch. On Friday afternoon, theaters may send a list of movies being shown.
Geo-fencing is a relatively new marketing strategy that may deliver the boost a company needs to increase profits. This marketing trend is rapidly spreading. Businesses may target customers within a specific geographical area with coupons, menus, sales alerts and other messages through geo-fencing. The messages should contain a date specific call to action for best results.
*Photo courtesy of The Magic Roundabout by Ordinance Survey at Flickr’s Creative Commons.