How To Set Up Geofencing Marketing

Ever wondered how you got a notification when you passed by a shop or a cafe when you were thinking of buying a coffee?

Or possibly, have y'all always received a coupon to purchase a phone instance right after purchasing a smartphone?

If these instances audio very relatable, and then information technology is due to geofencing marketing.

Table of Contents

1. What is geofencing?
2. What is geofencing marketing?
3. How it works
4. Cost of setting information technology upwardly
5. How to use geofencing marketing
6. Why should it be a role of a marketing strategy?
7. Geofencing vs Geotargeting vs Geolocation
8. The evolution of consumer marketing
9. Frequently Asked Questions

Does this await very familiar?

Source

Uber set up geofences around LAX for users to hail a cab conveniently. Users received these notifications considering they entered the geofence created by Uber.

With the rise of smartphone operators all across the globe, geofencing has become a common tool for businesses and marketers to leverage. Roughly, 95% of Americans own mobile phones, out of which 77% of them are smartphones.

In addition to this, the average American adult (18+) spends a minimum of 4 hours and 15 minutes on their mobile telephone every day.

What is geofencing?

Geofencing is a blazon of location-based marketing tool, which, when integrated with an app, creates a virtual geographical purlieus that uses GPS technology to send notifications/alerts to a user.

What is geofencing marketing?

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

A user with a smartphone tin enter or exit the virtual boundary known as a geofence, location target, or Geotargeting.

With a plethora of options available, it is best to refine the target audience to ship out apt notifications and marketing campaigns.

Geofencing Marketing: Partition

 According to Straits Research, the geofencing market place can exist categorized by component, type, technology, deployment, and vertical.

Past Type

1. Stock-still Geofencing
2. Mobile Geofencing

Past Component

1. Service
2. Solution

Past Technology

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

By Deployment

1. On-premise
2. On cloud

Past Vertical

1. Retail
2. Healthcare
3. Regime
4. Events
5. Police
6. Transportation and Logistics

How does geofencing marketing work?

A geofencing marketing campaign can exist used for businesses and brands of any size and any requirement.

A geofence can be set with a geographical boundary of up to 1000 meters and as less every bit 200 meters.

Geofencing marketing is a robust method of marketing that allows businesses to appoint 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 advertisement campaign for that detail 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 campaign may contain promotion, discount, invitation, or fifty-fifty just a greeting bulletin.

With geofencing marketing, a company tin can choose when the ads tin appear. If in that location is considerably higher traffic during the evenings, for case, the ads can be set to announced during that time frame on apps and webpages to go the best results.

How to set up geofencing marketing

With Beaconstac'due south geofencing solution, creating a geofencing marketing campaign is done in five easy steps. Before getting started, remember to integrate the app'due south SDK with our platform.

iOS | Android

If no app is ready in place, create an app using Beaconstac's DIY app builder on Shoutem.

ane. Create the geofence

Set up upwardly a geofence as small equally 200 meters or as far as 2000 m to set a radius using Beaconstac'southward geofencing solution.

ii. Build a landing page

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

3. Analyze the data

Collect analytics about the campaign using Google Analytics and export it to CSV.

four. Fine-tune

Using the nerveless data, fine-melody the campaign to offer well-thought-out notifications.

5. Integrate SDK with the app

Once the geofence is created, integrate the geofence SDK to an existing app or utilise Beaconstac'southward DIY app builder to fix the campaign.

Elements to keep in mind before setting up geofencing marketing

1. Privacy

Before using geofencing, information technology is best to inform app users most tapping into their geographical data and making use of information technology for sending out deals and promotions.

The intent and purpose of the usage of this data should also exist explicitly stated, in example there are grievances regarding data usage by third-party apps.

2. Battery Problems

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

three. GPS Accuracy

The location is the crux of a geofencing marketing entrada. For a successful geofencing marketing campaign, optimization of the location'south accurateness must exist processed without the interference of too many resource.

The perfect solution should exist a harmony betwixt using a coarse location + fine location from the customer's device.

In addition to location accuracy, making sure that the users have allowed the app to store and use their location data to run the geofencing marketing entrada is also important.

four. Collect iii types of data

When collecting data to prepare an appropriate geofencing marketing campaign, confirm that the location data collected includes prior visit history, dwell time, and pes traffic of the user.

v. Actionable CTA

Before setting up a geofencing marketing campaign, cheque that all the engagement notifications triggered by the geofence have a direct, concise, and actionable CTA for maximum effect.

For a well-performing campaign, tracking and analytics is crucial. Exist sure of analyzing the collected data from the user'south side and location activity to brand well-informed decisions.

six. Have a well-defined dashboard

Use a solution that provides a singled-out and well-defined dashboard system that has all the tools required to create and manage geofencing marketing campaigns in one place.

seven. Set up an app

Setting up an app dedicated to geofencing marketing is the most vital aspect of the campaign. Geofencing marketing will not work sans an app.

An app that complements geofencing can help brands engage with their users in real-time and boost conversations to increase sales.

Beaconstac provides a geofencing SDK that can be integrated with whatsoever app to include the geofencing marketing campaign. If in that location is no dedicated app, you can apply our DIY app builder platform partner, Shoutem, to build an app.

In addition to this, make sure the geofence is a 4-to-five-minute walk or drive from the store to motivate users to visit the location.

What is the price of setting up a geofencing marketing entrada?

The price of setting up a geofencing marketing campaign depends. Commonly, the toll varies from $5-$fifteen CPM (Price Per Thousand Impressions).

That existence said, several factors influence the price ranging from impression volume, features on the integrated app, and other targeting features.

The number and size of the geofence affect the toll of geofencing marketing campaigns. The larger the geofence, the lower the CPM is because the volume is higher.

In add-on to this, consider the level of reporting and targeting features to be included besides.

Geofencing marketing campaigns are added to the base advertisement campaigns, which can range from a few dollars to a few yard dollars depending on the size and intent of the marketing campaign.

The campaign cost besides depends on the entrada goals, which tin either be a CPM per geofence or even cost per conversion.

But typically, a geofencing marketing entrada costs between a few dollars to a few thou dollars.

At Beaconstac, the price of setting up geofencing marketing starts with just $83 per month and an allowance of setting upwardly to 20 geofences with iOS and Android. Beaconstac does not charge extra upward to 20 geofences.

How to apply geofencing marketing

Setting up a geofencing marketing campaign may expect tedious but in actuality, it is quite straightforward and easy to troubleshoot.

A geofence can exist set upward anywhere – effectually the concern and its competitors' location. A virtual boundary tin can be created around whatever geographical area.

Where to use? | Data-driven iterations | How is information technology used past marketers | Industry verticals | Use cases | Brands

Where to use geofencing marketing?

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

1. The primary location of the business
2. Competitor'due south 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

Mensurate and manage data-driven iterations

With geofencing marketing, brands tin deliver ads and content attuned to their consumers' behavior and demands.

Businesses and marketers can collect data, fine-melody their target audience to give their consumers exactly what they desire by using an analytics platform.

Use Beaconstac'south analytics to measure the number of notifications sent, the click-through charge per unit of the campaign, and other campaign analytics such as gender, age demographics, shopping beliefs to modify campaigns with these insights.

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

How is geofencing marketing being used by marketers?

Valentina Robotti, digital marketing manager at QNY Artistic, says, "We have used geofencing strategies at QNY to promote specific promotions within stores across high book sales sites.

Nosotros have used geofencing also in coordination with Work Perk initiatives, delivering product samples to offices in the Northward Carolina and Illinois area, and then similarly serving relevant geofenced ads.

Geofencing tin be used for both leads and influencing make consideration every bit well equally in combination with other field marketing strategies to strengthen brand recognition."

One of the about widely used sectors of geofencing marketing is marketers. The possibilities of geofencing campaigns are countless.

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

1. Make engagement

When users download the defended app and are prompted a notification to encourage a buy after entering the geofenced area, the app to user engagement increases.

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

2. SMS appointment

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

iii. Social media advertizing

Using Facebook and Instagram'southward local sensation, brands send out advertisements to users in the context of social media when they enter a geofenced area.

4. Web advertisements

Users enter a geofenced area and a designated brand's ads are delivered via Google AdWords as and when they surf the web.

five. Third-political party app engagement

If users download a tertiary-party app such as a eating house locator, the brand's geofenced letters are delivered via that app.

Manufacture verticals witnessing success with geofencing marketing

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

1. Geofencing for retail

Retail stores can create a geofence in an area within its perimeter. Every time a user passes by the defined area, they will receive a location-based alarm. Maybe, offer a deal that tin make them drop in and shop at the store.

2. Geofencing for law

A law firm, attorney, or a lawyer can ready geofencing marketing to target specific areas of interest. The targeted locations might include jails, hospitals, courts to reach their target audition. Geotargeting could besides be prepare up to concenter more leads.

3. Geofencing for existent estate

Geofencing marketing is a wonderful tool for real estate. With geofencing, existent estate agents can gear up a virtual purlieus and every fourth dimension a potential onlooker/buyer enters or exits the boundary, they receive a notification.

This tin can boost sales and conversion and assist real estate agents to even filter out unnecessary clients.

4. Geofencing for auto dealers

An automotive dealer could prepare a geofenced advertisement that tin can target a user leaving the competitor's shop.

The automotive dealer tin can offer a better offer or discount to let the user browse through the options at the geofenced location and address a particular hurting point that the competitor did non use.

Ryan Moothart from Portent introduced geofencing to ane of their clients in the automotive space.

He says, "When we took over their paid search advertisement accounts, their geographic targeting strategy was too broad; they were showing ads to users who were potentially hundreds of miles away from their nearest store location.

That's non something you want to pay for if your goal is to make a turn a profit from your paid search ads.

By restricting our customer'south geographic targeting, thereby making our eligible areas of where our ads could show to be significantly smaller and closer to our client'south store locations, we were able to drive their online conversion rates way up and bring their average cost per user caused manner down.

Thus, we generated more than potential customers from our paid search ads while spending the aforementioned corporeality of coin they were earlier."

5. Geofencing for events

Artists and musicians tin set up geofencing effectually their tour destinations, events, and concerts alee of time to target their audience and let fans know.

They can besides promote their upcoming shows for the audition who are not aware of them or fifty-fifty their fans to create a sense of intrigue.

The nerveless data could be used to analyze their users' behavior to understand their mindset and 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 office of its cohesive marketing strategy.

Hospitals and individual expert clinics can send out timely and appropriate notifications to their users who enter the geofenced surface area.

Rahil Chaudhary, the Managing Managing director at Eye7 Chaudhary Eye Centre, says, "We take used geofencing for marketing much more in 2022 since we started getting much more footfall through the door since using information technology.

We target opticians and glass stores. The trick is our adverts and marketing are in the small script so the users actually struggle to read it; the marketing centers effectually asking them if they institute that hard to read when they need to visit united states.

The humor and timing of the ads take really helped our business."

Apply-cases of geofencing marketing

1. Enhance hyperlocal sales

Geofencing helps apps and marketers to pinpoint and runway their users' location precisely to deliver products and services more effectively.

With this feature, marketers tin filter their target audition and send out appropriate messages and notifications to heighten hyper-local sales.

2. Increment sales by driving traffic

Retail outlets and location-based services tin can take the assist of beacons to straight foot traffic to the most popular sections in the outlet.

By leveraging geofencing and beacons together, businesses tin drive traffic in and to the outlets seamlessly.

Confused between choosing geofences and beacons?

three. Customer retentiveness

With the flexibility of geofencing, marketers can use this feature to the fullest to bring dorsum customers to the outlet.

Geofencing allows tracking the shoppers' past behavior and with the aid of that information, marketers tin transport out appropriate notifications to the user in the form of a discount, loyalty program, exclusive member-only sales, and games to bring them back to the outlet.

iv. Initiate feedback on exiting the geofence

Marketers can reach out to their users who accept left the geofenced location to fill a feedback course and get more insights nearly their feel.

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

5. Social networking

Geofencing marketing is used past all social media channels – Instagram, Facebook, Twitter, and Snapchat to serve highly customized content, advertisements, and location-based filters that are highly distinct to that particular location.

six. Optimize user feel

Geofencing is dynamic in nature. This insinuates that geofencing tin exist analyzed past the marketers to runway and gauge their audiences' behavior around the geofenced expanse and the app.

The data nerveless tin then be used to offer highly personalized offers and services to serve better and therefore, increase the overall ROI of the outlet.

7. Boost engagement and conversions

Every client'south dream is to receive the right offer at the right time. With geofencing marketing, this need volition reflect.

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

Use geofencing to supercharge client experience

eight. Optimizing analytics and information

Location and data analytics is the core role of geofencing marketing. Geofencing marketing strategy heavily depends on these two factors mainly.

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

1. Ad impressions/views
2. Conversion zone visits

An added do good with geofencing marketing is that the campaigns can be edited in real-time based on the data collected.

If users are not responding to the promotions, marketers tin can analyze why and re-edit the promotion in real-time to concenter more customers.

nine. Better customer behavioral data

Users who enter and go out the geofenced area can provide valuable insights to marketers that can exist leveraged for a handful of reasons.

Marketers tin can study a user's purchase propensity and the kind of products they are interested in. This tin can be used to enhance and ameliorate every client's contour in order to serve better.

Brands that have used geofencing marketing

1. Dunkin Donuts

Source

Snapchat partnered with Dunkin Donuts on Globe Donut Day with a geo-filter that turned the user's caput into a donut. This filter could merely exist unlocked at a Dunkin Donuts outlet, and the outlet offered a free donut with every coffee purchased, upon using this filter.

2. Burger King vs. Mc Donald'south

Source

Talk about creating a geofence around the competitor.

Burger Male monarch excelled with its "Whopper Detour" campaign that had a 600-feet fence around Mc Donald'due south restaurants. Although Burger King did encourage its users to go to Mc Donald's, and on entering their contend, the burger visitor offered a one-cent Whopper burger that could be unlocked on the Burger King app.

This marketing entrada resulted in over 1 million app downloads and their ranking soared from 9th to commencement identify in the App Store.

3. American Eagle

Source

American clothing retail uses geofencing to drive users to their outlets.

The clothing retail giant teamed upward with the shopping app Shopkick and used buoy technology in addition to geofence to give their users in-app coins by urging them to try products in the trial room.

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

4. Walgreens

Source

Walgreen, the chemist's shop giant revised the unabridged concept of rewards and loyalty with the use of geofencing. With the assistance of in-store beacons and an aggressive geofencing marketing campaign, Walgreens captured their app users' attention to direct them to their rewards program status.

The geofencing marketing entrada was to highlight the user's present reward signal balance, their advantage milestone journey, and their reward coin balance.

The campaign actively encouraged its users to spend their reward balance, collect more advantage points and initiated them to progress further in their milestone reward journey.

5. Whole Foods

Source

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

Whole Foods also deployed geo-conquesting tools by placing geofences virtually its competitors' stores to target shoppers close to their competitors with attractive offers. This incentivized their shoppers to travel in exchange for better deals at Whole Foods.

This entrada garnered them with a iv.69% postal service-click conversion rate; more than iii times the national average of 1.43%.

Read how brands utilize beacons and/or geofencing with their marketing campaigns

Why should geofencing be a function of a brand'due south marketing strategy?

To get on to whatsoever new engineering science, data-driven information drives the best decision. Here's some statistics to corroborate the fact –

1. forty% of shoppers look for information while on the move.
2. seventy% of users are willing to share their location with the brand for a quid pro quo offering.
3. Boost secondary action rates – users visit a store later on seeing an ad twice with location-based marketing.
4. 60% of consumers search for local information on their smartphones.
5. Trade and dwelling house services rank the highest amidst secondary action rates.

In inclusion to this, there are four major benefits of adding geofencing to a make's marketing mix –

ane. Targeting

With geofencing, brands go an edge over the accessibility to choose when to send messages which are much more relevant and timely.

By targeting users who are constantly on the move and geographically shut past, in addition to adding other targeting criteria on top such equally analytics, a make is much more likely to attract consumers.

two. Concise data

Geofencing provides data collection which is often overlooked by marketers. With the right kind of platform such as Beaconstac, a brand can collect valuable information on traffic patterns, dwell time, and messaging effectiveness.

3. Effectiveness

With geofencing marketing, a make can attain its audiences that most likely volition accept action. Geofencing helps marketers filter out unnecessary target audition, implying that brands volition have to spend less on an irrelevant audition.

Better appointment lead generation ever leads to highly effective marketing spend.

four. Attribution

Marketers have long wanted a link betwixt ad and action. Geofencing is the reply to that.

Geofencing applied science allows marketers to gauge how customers react when they come up across an actionable ad and to 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 data drove, amend targeting, and ameliorate attribution leads to more effective spending.

Geofencing vs Geotargeting vs Geolocation

Geofencing	Geotargeting	Geolocation
Uses GPS via Wi-Fi, or cellular data to ready-off a pre-programmed action/alert when a user with a smartphone enters/exits a designated virtual geographical purlieus via a mobile application or webpage.	Uses the user'south geographical location with the help of GPS signals, geofencing, zip lawmaking via IP accost or device ID	Uses mobile phone or internet-connected device to approximate 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 collaborate with other people
Geofencing works even after the user has exited the contend.	Geotargeting works only when the user is targeted every time they enter a neighborhood or a specific targeted location set up by the possessor	Geolocation is usually a self-initiated tool, which means that the user has to allow the device to utilise this feature
It does not work independently of an app. An app has to deployed for the successful utilise of geofencing	It works solely dependent on the user'due south location data. If the user has allowed the permission, the brand tin 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 equally healthcare, retail, and museums	Geotargeting is similar to geofencing. The engineering is used for marketing purposes likewise	Geolocation is used by the authorities for security purposes, games, and tracking
Some of the companies that utilise geofencing are Sephora, Whole Foods, and Taco Bong	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 to Markets and Markets, the geofencing market place is pegged to reach $1.viii billion by 2022. This implies that the market of geofencing marketing is not slowing downwardly by any means.

Non surprisingly, the industries predictable with the most growth are travel and logistics (Uber).

Northward America is predicted to head the geofencing market, owing to the maximum penetration of mobile phones and advanced GPS infrastructure.

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

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

Is geofencing marketing the adjacent big matter in location-based marketing?

Yeah.

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

For consumers, when integrated with an app, geofencing can serve as a reminder tool, dwelling house security systems, automated coffee pots, and receive offers from their favorite restaurants.

For marketers, the technology of geofencing tin enable them to send regular push notifications and mobile advertisements that tin can be pinned to a business location.

Read how location helps gain a competitive border via geofencing

Frequently Asked Questions

1. Is geofencing marketing dependent on location accuracy?

Yep. Geofencing thoroughly depends on the users' accurateness of location.

Today, the engineering of GPS is highly advanced and accurate to pinpoint and detect if a smartphone is in the vicinity.

Suppose the user is 100 meters away from the location of a make using geofencing, the brand can transport automated notifications to the user via their app. The notification can be heavily based on marketing or fifty-fifty just a greeting that can be viewed within their app.

2. Who tin can add geofencing to their marketing mix?

Any business concern or brand that has a physical location on the map, and that desire to –

1. Bring new customers
2. Retarget customers to increment client 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 set independently of an app. For a successful geofencing marketing entrada, setting up an app is paramount.

Beaconstac offers a robust geofencing SDK that tin can exist integrated with whatsoever existing app to get started with geofencing. If there is no dedicated app, and then fret non.

You tin use our DIY app edifice platform partner, Shoutem to create an app along any vertical and just integrate the SDK with the created app.

Want to start leveraging the power of geofencing? Explore Beaconstac'south geofencing solution or schedule a demo today!

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Source: https://blog.beaconstac.com/2020/01/geofencing-marketing-guide/

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