Can Geofencing Help My Small Business?
So what’s all the fuss about geofencing? While you’ve probably heard this term thrown around recently, you were most likely unsure what it really meant. As business owners scramble to find effective new strategies to attract customers, geofencing represents the newest shiny marketing secret everyone keeps talking about.
Simply put, geofencing is a location-based service designed to target customers while they are in or near a specific location — allowing companies to push advertisements, messages or promotional offers to people within a hyper-specific geographical area. As people enter, leave and stay in specific areas, designated by geofences, they are subjected to targeted ads and data collection based on their internet searches.
For example, if you sell pizza, you might want to market directly to customers leaving the bar down the street after 8 pm. They are most likely hungry and your shop is close by so it represents a more likely potential customer.
A geofence is a virtual perimeter of a specific geographical area. There are no size restrictions for a geofence, and they can be drawn in any location and in any shape. Marketers are able to choose their geofence based on their specific businesses desires and needs.
Geofencing uses GPS-location technology to collect location-specific insights about people’s online behaviors. This information helps companies see what people are searching for while in a designated location. This informs future decisions for marketing campaigns and helps with overall awareness and sales. More directly, it can bring interested people right into your store.
Marketing becomes more direct and profitable with geofencing by targeting those who search for your product or service in a specific location.
While geofencing can be useful, it will not work for every company. Ideally, companies that have a brick and mortar location that attracts foot traffic stands the best chance of seeing a return on their geofencing strategy. Companies with the means to target a location-based group of potential customers can also benefit from this type of marketing.
Like all marketing strategies, the best results occur when your find something that works for your specific needs and closely track your results to determine how to change and improve your methods to increase your results.