How To Build Your Geofencing Strategy

Reaching customers at the right time and place is a key component of every business’s marketing strategy. Geofencing is an innovative way for companies to do exactly that — setting digital boundaries in the real world to market to customers most likely to engage.

The power of location-based marketing can help your business take the next step in its digital marketing strategy. Let’s take a look at the basics of geofencing and how to make it work harder for your business.

UNDERSTANDING GEOFENCING

At its most basic level, geofencing is a virtual advertising boundary around a specific, real-world location. When potential customers enter the area, they can receive targeted ads, text messages, or notifications.

By being highly localized and targeted, geofencing allows you to engage with customers who are likely to be interested in your products or services based on their real-world behaviors.

Because geofencing is a virtual boundary, it’s highly flexible — you can set up a geofence almost anywhere and dictate its size to fit your specific needs. As a bonus, it provides insights into customer actions, making it a wonderful tool for driving traffic and improving ROI.

CHOOSING A LOCATION TO GEOFENCE

A large part of the success of a geofencing campaign comes down to where you’re placing your boundaries. While it’s a common practice to geofence your competitor’s locations, a strategy that goes deeper and considers other locations can provide other avenues to potential customers.

High-Traffic Areas: One of the best places to set up a geofence is, well, where the people are! Places like malls, shopping centers, downtown districts, or entertainment venues are great opportunities to target a larger audience.

Events And Local Attractions: Another strategic move is to place a geofence around things like festivals, local sporting events, and concerts. People attending these events are often already in a mindset to make a purchase.

Partner Locations: Do you partner with any businesses or nonprofits in your area? Setting up a geofence to target your partners is a great way to complement one another’s business! You can tap into an audience that’s already interested in similar products and services and create awareness.

Your Own Location: Don’t neglect to target your own business! Placing a geofence around your own business is a great way to send promotions or discounts to customers who are already nearby — it could be the push they need to make an impulse visit. As a bonus, it’s a great way to re-engage customers who may have visited you but not made a purchase.

CRAFT A COMPELLING MESSAGE

Once you’ve got a location to geofence figured out, make sure to craft a compelling message that will resonate with your customers and encourage them to engage.

Your message might take into consideration the location where the ad is being delivered. For example, if your ad is being delivered around an event location such as a home expo, you might mention the event in your ad.

When crafting your message, ensure you have a clear CTA with a sense of urgency so that customers know exactly the action you want them to take. This helps bridge the gap between seeing the ad and making a purchase.

If you’re ready to layer a geofencing strategy into your digital marketing plan, the team at Federated Digital Solutions can help! Reach out to us today to find out how we can help you better target your customers with an optimized geofencing strategy.