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Geofencing

Use geofencing technology to start targeting your marketing campaigns and attracting more customers to your company.

By 2022, the geofencing market is expected to be worth $1,825 million—which would indicate a growth rate of 27.5% since 2017. (SBWire)

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How Does Geofencing Work?

Geofencing determines the exact location of your targeted client using a combination of technologies such as cellular data, GPS, and Wi-Fi.

Who Uses Geofencing?

Retailers aren’t the only ones who utilize geofencing to increase visitors to their stores. They’re used by companies like Amazon for its drones. At airports and other locations, Uber uses geofencing to maintain perimeters. Honeywell utilizes it to detect when no one is at home and so reduces energy consumption.

What is Geofencing?

Geofencing is creating a virtual barrier around a certain location so that users using mobile devices receive a pre-programmed notification or ad when they cross it. Mobile advertisements can be programmed to respond to the location of the user. Customers can also receive automatic, location-based notifications as they walk through specified regions.

Because it takes advantage of users’ real locations, geofencing allows you to create some of the most targeted marketing campaigns for your company. Indeed, more than half of customers who received a location-based message visited the company that issued it. The click-through rate on ads using geofencing is more than doubled. Customers prefer tailored ads 71 percent of the time, making geofencing mobile ads extremely effective.

A geofencing ad prompt can be triggered by a variety of actions, including:

  • Mobile push notifications; mobile social media ads that are relevant;
  • Customers’ attention might be piqued with text messages or alerts.
Geofencing also gives you access to consumer data based on their location, which can help you figure out how customers engage with your company.
 
Finally, geofencing allows you to physically target your adverts and messaging to the people who are most likely to respond.
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How Geofencing Works

Choosing your preferred virtual geographic boundary is the first step in geofencing. You’ll need to set up a physical boundary that will send out notifications when users cross it. You could, for example, use GPS or RFID software to select a 100-foot radius around your company’s physical site.

Retailers can create a perimeter around their store that will trigger a social media ad for customers who enter it. As long as users have enabled their location services, geofencing is frequently implemented into mobile applications. If a user has the app of a specific retailer, they will receive a tailored message from the app if they breach the virtual geofencing barrier.
 
To correctly target potential customers depending on their location, geofencing uses GPS, Wi-Fi data, and cellular data. You may then send customized messages to your target demographic automatically, increasing your chances of attracting local clients.

Geofencing Applications

Everywhere we go, we have our mobile devices with us. The average user spends 5 hours each day on their mobile device, indicating that it is a major new marketing channel. Many of them also leave their location services turned on, allowing local businesses to see who is around at any given time. Businesses are beginning to recognize the value of tailored messages, notifications, and mobile ads. Geofencing comes in handy in this situation.

Geofencing allows your company to create highly specialized and targeted advertising campaigns and reach out to the most likely potential customers. Much of this marketing activity may now be automated thanks to geofencing, without sacrificing the personalized touch that clients seek.
 
You may set up automatic communications and programmatic adverts to assist draw more attention to your business while allowing you to focus on other areas of it.

TOP APPLICATIONS OF GEOFENCING TECHNOLOGY

SOCIAL NETWORKING

For businesses trying to reach out to potential clients, social media is a gold mine. Customers can be encouraged to share promotional content when they are physically near a business by using location-based filters and public stories.

MARKETING

Advertisements are most effective when they reach a specific audience. When you use geofencing to target your adverts to nearby customers, they are more likely to stroll into your store or check out your business if they see anything relevant. To market to the most likely buyers, you can use promotional, location-based advertisementson the web or social media

SMART APPLIANCES

Businesses and events aren’t the only ones who use geofencing. You can also use smart gadgets to use geofencing technology around your residence. Depending on whether you’re in the geofence or not, you can set up routines to control your smart appliances, adjust the thermostat, and conserve energy.

AUDIENCE ENGAGEMENT

When there’s a large audience at an event, geofencing can assist get messages to everyone in the room fast. Geofencing is a convenient approach to automatically reach everyone in a crowd.

HUMAN RESOURCES

Employees are also affected by geofencing. Employee time cards can be automated with the use of geofences, which can help monitor employees and streamline the clocking-in and clocking-out procedure.

TELEMATICS

Geofencing also has crucial telemetry uses. You can more easily follow people, vehicles, mobile devices, and packages using geofencing, which triggers notifications when they reach a predetermined geographical area.

SECURITY

Although many people are concerned about geofencing and privacy, geofences can improve the security of your house or business by sending notifications to your smartphone. Your home security system can be linked to your mobile device. Alerts concerning intruders in your home are an example of geofencing and security.

The Future of Geofencing

While others argue that geofencing poses a privacy risk, most firms and marketers are keen to take advantage of the new technology. Most businesses strive to focus their advertising efforts and messaging to the most appropriate audiences. Businesses can use geofencing to automatically target extremely specific, location-based customers.
 
For their marketing campaigns, more and more organizations are beginning to invest in geofencing technology. Despite the fact that digitalmarketing evolves at a rapid pace, geofencing appears to be a key marketing approach in the future.

How do I Setup Geofencing?

To get started with geofencing for your business, you’ll need GPS or RFID-enabled software that allows you to create a virtual border around your store or site. Set a boundary that is large enough to attract a significant number of users, but not so vast that it notifies people thousands of miles away. You can set your border based on where there is the highest foot traffic or where your most likely consumers are.

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Mobile apps can also be configured with geofences, which allow them to track users’ positions and provide tailored messages to individuals in their immediate vicinity. Customers entering your parking lot or walking around a nearby region can be detected automatically by your geofences. If your store or website has a mobile app, you can send promotional notifications about deals, loyalty points, or advertisements to attract more customers.

How Effective is Geofencing?

Geofencing is very effective when compared to other forms of marketing. Customers get a more personalized ad experience depending on their location with geofencing, which always results in more effective campaigns.
 
Customers are more likely to click through advertising with geofencing and are more likely to visit the real place advertised with geofencing, according to the statistics. When customers receive a marketing call-to-action near a retailer’s store, over 75% of them follow the steps.
 
Traditional advertising frequently entails placing advertisements without knowing who would view them. Instead, mobile geofencing is a highly targeted strategy that can immediately increase the number of clients that visit your business. You don’t have to squander your advertising cash on uninterested clients when you use geofencing. You can better target your marketing messages to the users who are most likely to respond.
 
Geofencing notifications, texts, and advertising should all include a clear call to action encouraging people to visit the business right away or take advantage of a last-minute bargain for the best results. People who are passing by your store can be targeted to remind them of your best discounts and make better use of your marketing budget.
 
Geofencing might potentially give your company a competitive advantage over its rivals. It is used by certain marketers to target clients while they are in the vicinity of other businesses. You can create geofences around your competitors’ companies to divert customers away from them. You can send well-timed coupons, promotional deals, or loyalty point reminders to clients who are near your rival, bringing their attention back to your firm.
 
With all of these choices, mobile geofencing technology provides a wide range of advantages to assist you fine-tune your marketing strategy and reach a larger audience.

Geofencing and eDDIE mARKETING sOLUTIONS

Geofencing is an effective approach to reach out to more potential customers and entice them to visit your store. Managing your own geofencing data and automated triggered messages, on the other hand, can take a lot of time. That’s where we come in. Our digital marketing experts can set up geofencing for your company and manage the automated communications that your potential customers will view.

We know how to get the most bang for your buck with your marketing spend. Eddie Tech Solutions will work with you to start using geofencing to your business’s advantage if you want to start targeting the ideal audience for your organization. Get in touch with us right away to get started!

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