Geofencing marketing campaigns is one of the best and most popular ways for businesses to market their goods and services. It entails creating virtual borders around a certain location using GPS technology. By targeting clients who are most likely to be interested in what they have to offer with tailored adverts, businesses can increase sales prospects and reduce advertising costs. However, why is geofencing so successful? Let’s take a closer look.
First and foremost, geofencing marketing campaigns enables businesses to target specific demographics. For instance, a clothing retailer may send advertisements to women between the ages of 18 and 35 who live within one mile of the store. An alternative is for a fast food restaurant to mail out coupons to customers who are nearby during lunchtime and are within a few blocks of the restaurant. Normal forms of advertising, like billboards and TV commercials, can’t give this much information.
Geofencing, however, does more than just disperse advertisements. By looking at the data from geofencing marketing campaigns, businesses can learn a lot about how customers act, which they can then use to change how they market to customers. For example, if a business finds out that a certain ad is popular with a certain group of people, it can use that information to make more ads that will appeal to that group.
The ability for businesses to reach out to clients at the ideal time and location is another advantage of geofencing. For instance, a concert venue might provide residents of a certain neighborhood close to the venue with a discount on tickets. Another choice is for a theme park to alert guests who are nearby and provide them with a special yearly pass discount. If businesses approach clients when they are most likely to make a purchase, they will have a greater probability of success. But adopting geofencing has disadvantages as well. If a user receives an excessive number of irrelevant messages or advertisements, it may be considered intrusive or annoying. To avoid this, businesses should be careful about who they market to and make sure their ads are relevant and useful to the buyer.