Geofencing Marketing: A Comprehensive Guide for 2021

Ever wondered how you got a notification when you passed by a store or a cà phê when you were thinking of buying a coffee ?

Or perhaps, have you ever received a coupon mập buy a phone case right after purchasing a điện thoại thông minh ?

If these instances sound very relatable, then it dịch vụ seo tổng thể website
due phệ geofencing marketing .

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Does this look very familiar ?

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Uber phối up geofences around LAX for users béo hail a cab conveniently. Users received these notifications because they entered the geofence created by Uber .

With the rise of điện thoại thông minh operators all across the globe, geofencing has become a common công cụ for businesses và marketers mập leverage. Roughly, 95 % of Americans own điện thoại phones, out of which 77 % of them are smartphones .

In addition lớn this, the average American adult ( 18 + ) spends a minimum of bốn hours & 15 minutes on their điện thoại phone every day .

What is geofencing?

Geofencing is a type of location-based marketing công cụ, which, when integrated with an phầm mềm, creates a virtual geographical boundary that uses GPS công nghệ bự send notifications / alerts Khủng a user .

What is geofencing marketing?

Geofencing marketing is a type of location-based marketing that creates a virtual boundary around a predefined location, with the aid of GPS ( Global Positioning System ) via satellite .

A user with a điện thoại thông minh can enter or leave the virtual boundary known as a geofence, location target, or Geotargeting .

With a plethora of options available, it is best bự refine the target audience phệ send out apt notifications & marketing campaigns .

Geofencing Marketing: Segmentation

According lớn Straits Research, the geofencing market can be categorized by component, type, công nghệ, deployment, & vertical .

By Type

1. Fixed Geofencing
2. Mobile Geofencing

By Component

1. Service
2. Solution

By Technology

1. GPS
2. RFID
3. Wi-Fi
4. Cellular Network

By Deployment

1. On-premise
2. On cloud

By Vertical

1. Retail
2. Healthcare
3. Government
4. Events
5. Law
6. Transportation and Logistics

How does geofencing marketing work?

A geofencing marketing chiến dịch can be used for businesses và brands of any kích thước & any requirement .

A geofence can be mix up with a geographical boundary of up lớn 1000 meters và as less as 200 meters .

Geofencing marketing is a robust method of marketing that allows businesses bự engage with their users based on their “ hyper-local ” location .

To summarize it, this is how geofencing marketing works –

1. The company creates a geofence for a predefined area and an ad campaign for that particular geofence
2. A user steps in the geofenced area and gets included in the advertising audience
3. The company starts pushing ads to the user via notifications, in-app ads, or coupons

A geofencing marketing chiến dịch may contain promotion, discount, invitation, or even just a greeting message .

With geofencing marketing, a company can choose when the ads can appear. If there is considerably higher lượng truy cập during the evenings, for instance, the ads can be phối mập appear during that phút giây frame on apps và webpages lớn get the best results .

How to set up geofencing marketing 

With Beaconstac’s geofencing solution, creating a geofencing marketing chiến dịch is done in five easy steps. Before getting started, remember béo integrate the app’s SDK with our platform .

iOS | Android

If no phầm mềm is phối in place, create an ứng dụng using Beaconstac’s DIY ứng dụng builder on Shoutem .

1. Create the geofence

Set up a geofence as small as 200 meters or as far as 2.000 m béo mix a radius using Beaconstac’s geofencing solution .

2. Build a landing page

Create và schedule audience-appropriate campaigns – landing pages, custom URLs, forms or even games .

3. Analyze the data

Collect analytics about the chiến dịch using Google Analytics & export it mập CSV .

4. Fine-tune

Using the collected dữ liệu, fine-tune the chiến dịch bự offer well-thought-out notifications .

5. Integrate SDK with the app

Once the geofence is created, integrate the geofence SDK bự an existing tiện ích or use Beaconstac’s DIY phầm mềm builder béo phối up the chiến dịch .

Elements to keep in mind before setting up geofencing marketing

1. Privacy 

Before using geofencing, it is best bự inform ứng dụng users about tapping into their geographical dữ liệu và making use of it for sending out đơn hàng và promotions .

The intent & purpose of the usage of this dữ liệu should also be explicitly stated, in case there are grievances regarding dữ liệu usage by third-party apps .

2. Battery Issues 

Because of the continuous usage of GPS in the background, device batteries of the users may die. Hence, it is paramount phệ find a geofencing solution that has a low dependency on GPS.

3. GPS Accuracy

The location is the crux of a geofencing marketing chiến dịch. For a successful geofencing marketing chiến dịch, optimization of the location’s accuracy must be processed without the interference of too many resources .

The perfect solution should be a harmony between using a coarse location + fine location from the customer’s device .

In addition phệ location accuracy, making sure that the users have allowed the tiện ích mập store & use their location dữ liệu Khủng run the geofencing marketing chiến dịch is also important .

4. Collect three types of data 

When collecting dữ liệu mập mix up an appropriate geofencing marketing chiến dịch, confirm that the location dữ liệu collected includes prior visit history, dwell giây phút, & foot lượng truy cập of the user .

5. Actionable CTA

Before setting up a geofencing marketing chiến dịch, kiểm tra that all the engagement notifications triggered by the geofence have a direct, concise, & actionable CTA for maximum effect .

For a well-performing chiến dịch, tracking & analytics is crucial. Be sure of analyzing the collected dữ liệu from the user’s side & location activity lớn make well-informed decisions .

6. Have a well-defined dashboard

Use a solution that provides a distinct và well-defined dashboard system that has all the tools required béo create & manage geofencing marketing campaigns in one place .

7. Set up an app 

Setting up an tiện ích dedicated Khủng geofencing marketing is the most vital aspect of the chiến dịch. Geofencing marketing will not work sans an phầm mềm .

An tiện ích that complements geofencing can help brands engage with their users in real-time & boost conversations lớn increase sales .

Beaconstac provides a geofencing SDK that can be integrated with any ứng dụng bự include the geofencing marketing chiến dịch. If there is no dedicated tiện ích, you can use our DIY phầm mềm builder platform partner, Shoutem, Khủng build an tiện ích .

In addition to this, make sure the geofence is a four-to-five-minute walk or drive from the store to motivate users to visit the location. 

What is the cost of setting up a geofencing marketing campaign?

The cost of setting up a geofencing marketing chiến dịch depends. Usually, the price varies from USD 5 – USD 15 CPM ( Cost Per Thousand Impressions ) .

That being said, several factors influence the price ranging from impression volume, features on the integrated phầm mềm, và other targeting features .

The number và form size of the geofence affect the cost of geofencing marketing campaigns. The larger the geofence, the lower the CPM is because the volume is higher .

In addition phệ this, consider the cấp độ of reporting và targeting features bự be included too .

Geofencing marketing campaigns are added lớn the base advertisement campaigns, which can range from a few dollars lớn a few thousand dollars depending on the kích cỡ & intent of the marketing chiến dịch .

The chiến dịch cost also depends on the chiến dịch goals, which can either be a CPM per geofence or even cost per conversion .

But typically, a geofencing marketing chiến dịch costs between a few dollars mập a few thousand dollars .

At Beaconstac, the cost of setting up geofencing marketing starts with just USD 83 per month & an allowance of setting up béo trăng tròn geofences with iOS và Android. Beaconstac does not charge extra up bự trăng tròn geofences .

How to use geofencing marketing

Setting up a geofencing marketing chiến dịch may look tedious but in actuality, it is quite straightforward và easy lớn troubleshoot .

A geofence can be mix up anywhere – around the business & its competitors ’ location. A virtual boundary can be created around any geographical area .

Where lớn use ? | Data-driven iterations | How is it used by marketers | Industry verticals | Use cases | Brands

Where to use geofencing marketing?

Geofencing marketing strategy can be implemented in almost every place. Here are a few of the locations that can be targeting using geofencing marketing –

1. The primary location of the business
2. Competitor’s business location
3. Nearby events
4. Closeby streets and stores
5. Shopping centers
6. Airports
7. Households via addressable geofencing 
8. Educational institutes and workplaces closeby

Measure and manage data-driven iterations

With geofencing marketing, brands can deliver ads và nội dung attuned lớn their consumers ’ behavior & demands .

Businesses & marketers can collect dữ liệu, fine-tune their target audience Khủng give their consumers exactly what they want by using an analytics platform .

Use Beaconstac’s analytics phệ measure the number of notifications sent, the click-through rate of the chiến dịch, & other chiến dịch analytics such as gender, age demographics, mua sắm behavior bự modify campaigns with these insights .

Geofencing can also be integrated with Google Analytics, which is available on the Beaconstac platform béo further fine-tune the campaigns on the go .

How is geofencing marketing being used by marketers?

Valentina Robotti, digital marketing manager at QNY Creative, says, “ We have used geofencing strategies at QNY lớn promote specific promotions within stores across high volume sales sites .
We have used geofencing also in coordination with Work Perk initiatives, delivering sản phẩm samples phệ offices in the North Carolina and Illinois area, và then similarly serving relevant geofenced ads .
Geofencing can be used for both leads và influencing brand consideration as well as in combination with other field marketing strategies bự strengthen brand recognition. ”

One of the most widely used sectors of geofencing marketing is marketers. The possibilities of geofencing campaigns are endless .

Having said that, here are a few core practices marketers are using widely –

1. Brand engagement

When users tải về the dedicated ứng dụng & are prompted a notification phệ encourage a purchase after entering the geofenced area, the tiện ích phệ user engagement increases .

Daria, the marketing manager at Chanty says that after implementing geofencing marketing, they witnessed a 40% increase in sign-ups in the US in just a month. This has helped them fine-tune their prices for their products to give a tough competition to their competitors at a higher price. 

2. SMS engagement

When users opt-in Khủng receive text messages on their smartphones from a brand, engagement automatically rises. SMSes are sent when the user enters the geofenced area .

3. Social media advertisement

Using Facebook & Instagram’s local awareness, brands send out advertisements phệ users in the context of mạng xã hội truyền thông when they enter a geofenced area .

4. Web advertisements

Users enter a geofenced area & a designated brand’s ads are delivered via Google AdWords as & when they surf the website .

5. Third-party app engagement

If users tải về a third-party ứng dụng such as a restaurant locator, the brand’s geofenced messages are delivered via that ứng dụng .

Industry verticals witnessing success with geofencing marketing

Here are some of the business verticals that are using geofencing bự enhance their marketing strategies bự unleash the maximum potent of geofencing –

1. Geofencing for retail

Retail stores can create a geofence in an area within its perimeter. Every thời gian a user passes by the defined area, they will receive a location-based alert. Perhaps, offer a giảm giá that can make them drop in and shop at the store .

2. Geofencing for law

A law firm, attorney, or a lawyer can phối up geofencing marketing béo target specific areas of interest. The targeted locations might include jails, hospitals, courts Khủng reach their target audience. Geotargeting could also be phối up bự attract more leads efficiently, allowing the executives bự focus on managing their day Khủng day law activities with the help of best legal software stack .

3. Geofencing for real estate

Geofencing marketing is a wonderful công cụ for real estate. With geofencing, real estate agents can mix a virtual boundary và every phút giây a potential onlooker / buyer enters or exits the boundary, they receive a notification .

This can boost sales và conversion và help real estate agents mập even filter out unnecessary clients .

4. Geofencing for auto dealers

An automotive dealer could phối up a geofenced advertisement that can target a user leaving the competitor’s store .

The automotive dealer can offer a better offer or discount mập let the user browse through the options at the geofenced location và address a particular pain point that the competitor did not use .

Ryan Moothart from Portent introduced geofencing Khủng one of their clients in the automotive space .

He says, “ When we took kết thúc their paid tìm kiếm advertising accounts, their geographic targeting strategy was too broad ; they were showing ads lớn users who were potentially hundreds of miles away from their nearest store location .
That’s not something you want béo pay for if your goal is mập make a profit from your paid tìm kiếm ads .
By restricting our client’s geographic targeting, thereby making our eligible areas of where our ads could show phệ be significantly smaller và closer béo our client’s store locations, we were able béo drive their trực tuyến conversion rates way up và bring their average cost per user acquired way xuống dốc .
Thus, we generated more potential customers from our paid tìm kiếm ads while spending the same amount of money they were before. ”

5. Geofencing for events

Artists & musicians can phối up geofencing around their tour destinations, events, & concerts ahead of phút giây béo target their audience & let fans know .

They can also promote their upcoming shows for the audience who are not aware of them or even their fans lớn create a sense of intrigue .

The collected dữ liệu could be used béo analyze their users ’ behavior Khủng understand their mindset và use it for future events .

6. Geofencing for healthcare

The healthcare sector regardless of its profit margin can highly improve its marketing strategy by implementing geofences as a part of its cohesive marketing strategy .

Hospitals và private practiced clinics can send out timely và appropriate notifications lớn their users who enter the geofenced area .

Rahil Chaudhary, the Managing Director at Eye7 Chaudhary Eye Centre, says, “ We have used geofencing for marketing much more in 2019 since we started getting much more footfall through the door since using it .
We target opticians và glass stores. The trick is our adverts và marketing are in the small script so sánh the users actually struggle mập read it ; the marketing centers around asking them if they found that hard mập read when they need phệ visit us .
The humor & timing of the ads have really helped our business. ”

Use-cases of geofencing marketing

1. Enhance hyperlocal sales 

Geofencing helps apps & marketers mập pinpoint & track their users ’ location precisely mập deliver products & services more effectively .

With this feature, marketers can filter their target audience và send out appropriate messages & notifications bự enhance hyper-local sales .

2. Increase sales by driving traffic

Retail outlets & location-based services can take the help of beacons lớn direct foot lượng truy cập mập the most popular sections in the outlet .

By leveraging geofencing & beacons together, businesses can drive lượng truy cập in và Khủng the outlets seamlessly .

Confused between choosing geofences và beacons ?

3. Customer retention

With the flexibility of geofencing, marketers can use this feature bự the fullest bự bring back customers mập the outlet .

Geofencing allows tracking the shoppers ’ past behavior & with the aid of that dữ liệu, marketers can send out appropriate notifications béo the user in the size of a discount, loyalty program, exclusive member-only sales, & games phệ bring them back Khủng the outlet .

4. Initiate feedback on exiting the geofence

Marketers can reach out lớn their users who have left the geofenced location lớn fill a feedback size và get more insights about their experience .

This can be done by several methods – survey, games, or even by enticing a coupon upon filling a khung .

5. Social networking

Geofencing marketing is used by all mạng xã hội truyền thông channels – Instagram, Facebook, Twitter, và Snapchat phệ serve highly customized nội dung, advertisements, và location-based filters that are highly distinct Khủng that particular location .

6. Optimize user experience 

Geofencing is dynamic in nature. This insinuates that geofencing can be analyzed by the marketers bự track và gauge their audiences ’ behavior around the geofenced area và the ứng dụng .

The dữ liệu collected can then be used lớn offer highly personalized offers & services phệ serve better và therefore, increase the overall lợi tức đầu tư of the outlet .

7. Boost engagement and conversions

Every customer’s dream is béo receive the right offer at the right giây phút. With geofencing marketing, this need will reverberate .

By implementing geofencing marketing, the sales conversion ratio will increase rather marginally và generate more revenue. This helps in the long run in increasing brand engagement và boosting the undying customer loyalty .

Use geofencing mập supercharge customer experience

8. Optimizing analytics and data

Location và dữ liệu analytics is the core part of geofencing marketing. Geofencing marketing strategy heavily depends on these two factors mainly .

It runs on data, which then alerts marketers to take a suitable action by sending out the appropriate information. Geofencing also provides data in real-time. 
Some elements that can be measured are – 

1. Ad impressions/views
2. Conversion zone visits

An added benefit with geofencing marketing is that the campaigns can be edited in real-time based on the dữ liệu collected .

If users are not responding mập the promotions, marketers can analyze why và re-edit the promotion in real-time phệ attract more customers .

9. Improve customer behavioral data

Users who enter & exit the geofenced area can provide valuable insights béo marketers that can be leveraged for a handful of reasons .

Marketers can create data-driven ICP for them lớn further study a user’s purchase propensity và the kind of products they are interested in. This can be used phệ enhance & improve every customer’s profile in order mập serve better .

Brands that have used geofencing marketing

1. Dunkin Donuts

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Snapchat partnered with Dunkin Donuts on World Donut Day with a geo-filter that turned the user’s head into a donut. This filter could only be unlocked at a Dunkin Donuts outlet, & the outlet offered a không lấy phí donut with every coffee purchased, upon using this filter .

2. Burger King vs. Mc Donald’s 

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Talk about creating a geofence around the competitor .

Burger King excelled with its “ Whopper Detour ” chiến dịch that had a 600 – feet fence around Mc Donald’s restaurants. Although Burger King did encourage its users phệ go bự Mc Donald’s, & on entering their fence, the burger company offered a one-cent Whopper burger that could be unlocked on the Burger King app .

This marketing chiến dịch resulted in kết thúc một million ứng dụng downloads và their ranking soared from ninth Khủng first place in the App Store .

3. American Eagle

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American clothing retail uses geofencing mập drive users bự their outlets .

The clothing retail giant teamed up with the mua sắm phầm mềm Shopkick và used beacon công nghệ in addition lớn geofence béo give their users in-app coins by urging them mập try products in the trial room .

This geofencing marketing chiến dịch helped them triple their revenue in their retail stores .

4. Walgreens

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Walgreen, the pharmacy giant revised the entire concept of rewards và loyalty with the use of geofencing. With the aid of in-store beacons & an aggressive geofencing marketing chiến dịch, Walgreens captured their phầm mềm users ’ attention Khủng direct them phệ their rewards program status .

The geofencing marketing chiến dịch was mập highlight the user’s present reward point balance, their reward milestone journey, & their reward money balance .

The chiến dịch actively encouraged its users phệ spend their reward balance, collect more reward points & initiated them phệ progress further in their milestone reward journey .

5. Whole Foods

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Whole Foods partnered with location-based marketing firm Thinknear phệ place geofences around a handful of its store locations Khủng target users who entered the fence with special offers và advertisements .

Whole Foods also deployed geo-conquesting tools by placing geofences near its competitors ’ stores bự target shoppers close phệ their competitors with attractive offers. This incentivized their shoppers bự travel in exchange for better đơn hàng at Whole Foods .

This chiến dịch garnered them with a 4.69 % post-click conversion rate ; more than three times the national average of 1.43 % .

Read how brands use beacons & / or geofencing with their marketing campaigns

Why should geofencing be a part of a brand’s marketing strategy?

To get on béo any hot nhất công nghệ, data-driven information drives the best decision. Here’s some statistics Khủng corroborate the fact –

In inclusion béo this, there are four major benefits of adding geofencing phệ a brand’s marketing set –

1. Targeting

With geofencing, brands get an edge kết thúc the accessibility béo choose when phệ send messages which are much more relevant & timely .

By targeting users who are constantly on the move & geographically close by, in addition Khủng adding other targeting criteria on top such as analytics, a brand is much more likely phệ attract consumers .

2. Concise data

Geofencing provides dữ liệu collection which is often overlooked by marketers. With the right kind of platform such as Beaconstac, a brand can collect valuable information on lượt truy cập patterns, dwell giây phút, và messaging effectiveness .

3. Effectiveness

With geofencing marketing, a brand can reach its audiences that most likely will take action. Geofencing helps marketers filter out unnecessary target audience, implying that brands will have phệ spend less on an irrelevant audience .

Better engagement lead generation always leads Khủng highly effective marketing spend .

4. Attribution

Marketers have long wanted a liên kết between advertising & action. Geofencing is the answer mập that .

Geofencing công nghệ allows marketers mập gauge how customers react when they come across an actionable advertisement và bự witness the exact outcome of the messaging campaigns. This can be a major factor in determining ROI.

The advantages of geofencing might not be distinct ; they are rather intertwined. Better dữ liệu collection, better targeting, và better attribution leads mập more effective spending .

Geofencing vs Geotargeting vs Geolocation

Geofencing	Geotargeting	Geolocation
Uses GPS via Wi-Fi, or cellular data to set-off a pre-programmed action/alert when a user with a smartphone enters/exits a designated virtual geographical boundary via a mobile application or webpage.	Uses the user’s geographical location with the help of GPS signals, geofencing, zip code via IP address or device ID	Uses mobile phone or internet-connected device to estimate a geographical location
A valuable tool to target and filter the target audience to boost sales, ROI, and conversion rates	A valuable tool when experimenting with the target audience	A valuable tool to view location history, tag images on social media, and to interact with other people
Geofencing works even after the user has exited the fence.	Geotargeting works only when the user is targeted every time they enter a neighborhood or a specific targeted location set by the owner	Geolocation is usually a self-initiated tool, which means that the user has to allow the device to use this feature
It does not work independently of an app. An app has to deployed for the successful use of geofencing	It works solely dependent on the user’s location data. If the user has allowed the permission, the brand can target them accordingly to send ads	It works solely on the discretion of the user. The user has to turn on their location data and grant permission to websites for their location
Geofencing is used solely for marketing purposes, along with other industrial uses such as healthcare, retail, and museums	Geotargeting is similar to geofencing. The technology is used for marketing purposes as well	Geolocation is used by the government for security purposes, games, and tracking
Some of the companies that use geofencing are Sephora, Whole Foods, and Taco Bell	Some of the companies that use geotargeting are Urban Outfitters, Toyota, and Purple Mattress	Some of the companies that use geolocation are Pokemon Go, and Ingress.

Geofencing Marketing: The evolution of consumer marketing

According Khủng Markets & Markets, the geofencing market is pegged phệ reach $ 1.8 billion by 2022. This implies that the market of geofencing marketing is not slowing xuống dốc by any means .

Not surprisingly, the industries anticipated with the most growth are travel & logistics ( Uber ) .

North America is predicted Khủng head the geofencing market, owing béo the maximum penetration of dế yêu phones và advanced GPS infrastructure .

Asia is pegged phệ be the fastest-growing region in the geofencing market during the forecast period by virtue of increasing government investment .

With geofencing marketing, brands can create rich customer interactions that can drive measurable business outcomes for brands .

Is geofencing marketing the next big thing in location-based marketing?

Yes .

Geofencing marketing offers a plethora of opportunities for both consumers & marketers .

For consumers, when integrated with an ứng dụng, geofencing can serve as a reminder công cụ, trang chính security systems, automatic coffee pots, và receive offers from their favorite restaurants .

For marketers, the công nghệ of geofencing can enable them phệ send regular push notifications và mobi advertisements that can be pinned bự a business location .

Read how location helps gain a competitive edge via geofencing

Frequently Asked Questions

1. Is geofencing marketing dependent on location accuracy?

Yes. Geofencing thoroughly depends on the users ’ accuracy of location .

Today, the công nghệ of GPS is highly advanced & accurate phệ pinpoint và detect if a điện thoại thông minh is in the vicinity .

Suppose the user is 100 meters away from the location of a brand using geofencing, the brand can send automated notifications phệ the user via their ứng dụng. The notification can be heavily based on marketing or even just a greeting that can be viewed within their ứng dụng .

2. Who can add geofencing to their marketing mix?

Any business or brand that has a physical location on the bản đồ, & that want Khủng –

1. Bring new customers 
2. Retarget customers to increase customer loyalty 
3. Provide better services by gauging their target audience 
4. Maintain attribution, and 
5. Increase ROI

3. Is an app required to set up geofencing marketing?

In short, yes .

Geofencing marketing cannot be phối up independently of an ứng dụng. For a successful geofencing marketing chiến dịch, setting up an tiện ích is paramount .

Beaconstac offers a robust geofencing SDK that can be integrated with any existing ứng dụng bự get started with geofencing. If there is no dedicated ứng dụng, then fret not .

You can use our DIY phầm mềm building platform partner, Shoutem mập create an phầm mềm along any vertical & simply integrate the SDK with the created phầm mềm .

Want béo start leveraging the power of geofencing ? Explore Beaconstac’s geofencing solution or schedule a tổng quát today !

Source: https://leowiki.com