Based on research, 77% of Americans own a smartphone. In the same report, one in five American adults is “smartphone only” internet users. This means they search, shop, and communicate with their smartphones.
Increase in smartphone usage has seen marketers coming up with new strategies. One of those strategies is geo-fencing. In a 2016 report, 22% of marketers agree that location-based marketing has potential.
With the smartphone base growing, targeting users based on their location is great.
In this article, we discuss 3 reasons geofencing should take part in your location-based marketing.
Adapt to the new buyer
The world has roughly 8 billion human beings and out of these, over 4.5 billion own a smartphone. Among these smartphone users, you have 3.5 billion who are unique mobile internet users. They contribute more than 50% of mobile search and internet traffic.
With access to endless information, consumers have become savvier than ever. This is true when it comes to making buying decisions. To keep up with the changing consumer behavior, marketers need to add geofencing retail data in their ads.
In so doing, marketers are able to gather relevant statistics. Also, they get to drive quality and geo-targeted ads to consumers. Here is an example where this is applicable.
Let’s assume we have a retail store called XYZ. How can marketers track what areas of the store customers are gravitating to? You guessed it right, geofencing marketing. From the heat maps generated, the store can position products to drive sales.
Personalise promotions and offers
In a survey, 57% of consumers said they have downloaded mobile apps from their favourite brands. Out of the 1200 people surveyed, 50% said they did so to access special offers. Another 28% said they wanted to receive location-based notifications.
Location-based marketing gives marketers the ability to personalize promotions and offers. To do so, they need to collect data. Analyzing the data will provide demographics about the local population.
From the consumers geofencing retail history, they can discover what products they prefer. In so doing, they can personalize promotions and offers.
As such, they are able to target the right customers and end instances of spam. This makes it easy for the geofencing team to optimize promotions and offer better ROI.
A good example of mobile geofencing is Sephora’s Mini Makeover Push. Using geo-targeted push notification, Sephora mobile app users receive notifications when their stores. The company offers free mini makeovers to entice the customers to buy.
It’s cost-effective
Geo-fencing coupled with mobile marketing does not need a huge budget to deliver. In geo-fencing, marketers can curate messages designed to target the ideal customer. Propellant Media points out that geofencing marketing technology can enhance engagement.
At the push of a button, push notifications are sent out. Before you know it, customers will troop into your business and make purchases. Now, you can compete against large businesses without the need to invest a huge budget.
Why use geofencing in your location based marketing
Location based marketing is the best technology for marketers right now. Not only can they deliver for small businesses but they will improve their ROI. Also, it enables marketers to collect useful data.
This provides insight into the click-through rate of geofencing notifications.
Want to stay ahead of your competition? Check out our blog for more tips on location-based marketing.