If your company isn’t using location-based marketing — and specifically geofencing — you are being left behind. This powerful technology allows you to send targeted messages to prequalified prospects when they enter particular geographic zones.
And research shows it works. Not only do 80% of people want to receive location-based alerts from businesses, but data shows 53% of them follow through with such calls to action. Location-targeted mobile-ad spending is expected to triple between 2016 and 2021, becoming 45% of total mobile-ad spending.
Let’s take a look at what a geofence target marketing campaign is and how it works in a real-life setting.
What is geofence target marketing?
Geofencing creates virtual fences around locations of your choosing using a blend of technologies including GPS and local radio-frequency identifiers such as Bluetooth and WiFi. Thanks to the popularity of smartphones (81% of Americans now own one), most people constantly carry a device capable of interacting with these technologies, making it possible to detect when individuals are inside a geofence. This trend has changed geofencing from an expensive commercial endeavor to one that can be applied to everyday marketing efforts.
How it works
With geofencing, you can push mobile ads to targeted customers or prospective customers when they cross geographic boundaries you set. You can also serve up an ad or promotional messaging when your prospect is close to a competitor.
A recent Randall-Reilly case study
A large tire manufacturer wanted to drive consumers to their retail shops that also offer oil changes. Randall-Reilly accepted the challenge and created a two-month geofencing campaign that was implemented across 10 locations and six states. A defined list of prospects were targeted and served a promotional ad on their mobile device.
The win: New customer data and increased sales
Seven of the 10 locations had a total of 165 clients that redeemed the $10 promotion they received when they bought an oil change. The campaign successfully resulted in 955,000 impressions, 764 clicks, 406 visits at a cost-per-visit of $36.94 and a 53% conversion rate. Further analysis determined that 95% of the conversions were new business and the client tracked total sales of $59,311.
How your business can benefit from a geotargeting campaign
A majority of consumers are willing to share their location data if they receive something of value in return. You can give prospects coupons or loyalty points, for example. When these prospects see your messages while they are near the point of sale, they are much more likely to make a purchase. Studies show geotargeting doubles click-through rates compared to the average industry rate for campaigns that aren’t targeted.
- Increased sales: More click throughs mean more sales, and with the targeted geo-fencing model, you can entice the same customers over and over by offering different promotions and limited-time deals based on customers’ needs. In addition, making these changes can be quick and easy.
- Enriched customer data: When a customer uses a geofencing promotion, you not only know your campaign is working, but have an opportunity to gain further insight into the behavior of particular buyers and customers in general. You can track how often they visit your business, how long they stay and what they purchase. Properly analyzed, this information can build a deep well of useful knowledge.
- Tighter targeting: You can adjust your campaigns and further personalize offers with the perspective revealed through targeted geofencing. You will find out what kinds of offers interest prospects and whether certain promotions work better in particular areas.
The first step in any targeted geofencing effort is identifying and understanding qualified prospects so you can send your messages to the right people and tailor your offers to their needs.
The role of Randall-Reilly’s RigDig Business Intelligence
RigDig’s extensive databases provide comprehensive business intelligence on more than 1 million active trucking prospects in the United States. Based on your unique business, RigDig can identify your best prospects by fleet size, location, firmographics and more. Once we identify your custom audience — which we can use for a variety of digital-marketing efforts — we will use our data-driven approach to build your targeted geofencing campaign, following all the best practices along the way.
Targeted geofencing is the wave of the mobile-advertising future. If your competitors are not using it, they will be soon. When you take advantage of the increased sales targeted geofencing offers you today, you also begin building a wealth of knowledge that will give your business a competitive edge well into the future.