The key to success in marketing is connecting potential customers with the right product, in the right place, and at the right time.
If you’re reading this article, you are about to gain a sizable advantage over the competition. In fact, with what we’re about to show you, you can literally make customers walk out of your competitors’ stores and come to buy from you instead. It’s a relatively new technology called geo-fencing, and it allows businesses to reach their target audiences more effectively and with less ad spend.
What is Geo-Fencing?
Geo-fencing (also referred to as location-based targeting) is a way to target people based on a specific location and then display ads for your product on their smartphones or tablets.
For example, as a hot tub dealer, you might have a new product line you’d like to promote or maybe you’re having an anniversary sale. You could spend thousands of dollars on television commercials, online ads, social media and newspaper ads, blasting your message to everyone in a 20-mile radius.
Or, you could focus more of your efforts on people who you know are in the market for your product. Geo-fencing allows you to do this because it draws a virtual fence around a location, and you can show video and banner ads to people in these areas.
Types of places you can draw a geo-fence around include:
– Competitor locations
– Convention centers
– Tradeshows
– Retail stores
– Malls
– Events
– Your own locations for customer loyalty
– Neighborhoods
The size of your geo-fence can be as large as you want it to be, and it can also be as narrow as a 25-foot radius. This precision means you can even target households. If you have a mailing list of new home buyers, residents with high-income levels or event attendees, you could potentially draw a geo-fence around addresses and target the residents of those homes individually.
How does Geo-Fencing work?
Geo-fencing works by drawing a virtual line around an area using latitudinal and longitudinal coordinates. The technology is so precise that it can include the contours of a building without wasting ad spend on people directly outside of the building. Also, geo-fencing requires no physical equipment.
When a potential customer with a smartphone or tablet enters a geo-fenced location, GPS technology captures their mobile device. While they’re at that spot as well as after they leave, your business can show them ads on their mobile devices. There are only two requirements:
1. The user must have location services enabled on their device. Fortunately, about 90% of people leave their location services on because it allows them to use location-based apps like Google maps.
2. They must open an app or browse the Internet in order for your ads to be shown.
Since most people use their smartphones several times per day, the chances are good that your prospect will see your ad while they’re at your competitor’s store or at an event where they’re looking at products just like what you offer. Imagine, you could make them walk out of a competitor’s store and drive directly to your place of business!
If they don’t use their phones in the target area, you’ll still be able to remind them about your business for the next 30 days. Since it can take several touch points to make a sale, being able to get repeat exposure can make a world of difference in your sales!
Geo-fencing can also be set up at your store. So, if a potential customer walks in, browses, chats with one of your qualified representatives, but then leaves, you’ll be able to target them with ads. You could show them more of the product line, advertise a discount or offer them a free consultation.
What are the benefits of Geo-Fencing?
In today’s competitive landscape, companies need an edge in order to stand out. It can be a challenge to keep up with the latest and greatest marketing tools, especially in today’s fast-changing digital landscape. Geo-fencing is a powerful and cost-effective way to get more customers and grow quickly.
Here are seven of the top benefits:
1. More precise location targeting – The area can be as specific as the inside of a building. There are also capabilities that allow geo-fencing to target customers only, not employees.
2. Intent-based targeting – Unlike an ad on television or social media, geo-fencing is showing your product to people who are either already looking for it or are likely to be receptive to the idea of purchasing.
3. You can market yourself at events even if you’re not there. – Trade shows and events are expensive to attend, and you can’t be everywhere all at once. However, with geo-fencing, you can show your products to people at these events. It’s like having a virtual booth!
4. Measure both online and offline conversions. – Other advertising channels are difficult to measure. For example, if someone saw an ad on television and then bought your product, you wouldn’t know that the TV advertisement was responsible for the sale unless they specifically told you. That’s because they could have heard an ad on the radio, been referred by a friend or maybe they were just walking by your business. With geo-fencing, you’ll know if someone in your targeted location saw the ad and then became a customer as a result.
5. High ROI. – Because the targeting is so specific, many clients find that this marketing channel provides a high return on investment.
6. Video ads are an option, too. – Therefore, it’s just like TV, but more targeted and less costly.
7. Simple to implement. – There’s no equipment needed. Unlike a beacon that requires a piece of hardware that connects to a Bluetooth device, a geo-fence is 100% virtual.
The end result is more efficient marketing spend with ads that are delivered to people who have the intent to buy. And, because the ad window is 30 days, you can provide multiple touchpoints while also reaching out to people who left your store without buying. It’s like multiplying the size of your salesforce and allowing them to be everywhere all at once!
So far, we’ve explained what geo-fencing is and the benefits. It might also be helpful for you to understand what a geo-fencing solution does not do.
Here’s what Geo Fencing is not:
– It’s not beacon technology. A beacon is a physical piece of hardware installed at a location that communicates with devices using Bluetooth. A geo-fence can be installed anywhere because it has no equipment.
– There are no push notifications or text messaging. While sending someone an announcement or a coupon for your business as soon as someone visits a competitor might sound good in theory, it’s invasive, perceived as spam and can be a customer turn-off. As you might imagine, people could also find it creepy. Geo-fencing, on the other hand, is unobtrusive.
Instead of feeling like they’re being stalked or aggressively sold to, your customers are more likely to react with, “Wow, I was just thinking of getting a pool or hot tub. And this company’s ad is showing me a new style that I really love. I should get in touch with them. What excellent timing!”
As a result of geo-fencing, the right customers are seeing the right product at the right time.
– They are not text ads. They are images or video. This is helpful because you can show your product in the best possible light and provide more information than you could in a simple text-based ad.
What results can I expect?
Results will vary, and making promises is impossible. However, there are several case studies of businesses just like yours who have used this marketing tactic with great success. They’ve seen impressive boosts in foot traffic and sales that are directly attributable to their geo-fencing campaigns.
Is Geo-Fencing right for your business?
Geo-fencing isn’t right for all businesses. For example, companies serving a broad, general audience with a low-priced product aren’t likely to see success with geo-fencing.
Where we tend to the see the best results is in a market that has a handful of competitors who are selling a high-ticket item that requires research and maybe even in-person selling. Given the price points of hot tubs and in-ground pools, businesses that sell these products can reasonably expect to see extremely positive results with this type of campaign.
To learn more about how this technology can work for your business, contact us today at 858-442-3131 for a free consultation.
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