Location Base Marketing & Geofencing
Location base marketing and Geofencing
What Is Location-Based Marketing?
Location-based marketing, also known as geo-marketing, is not a new concept. Businesses have always understood the value of marketing to people based on their location. This is why many brick-and-mortar businesses or community base organizations still send direct mailers to their clients, and it’s why you see people wearing Statue of Liberty costumes on the roadside during tax season.
Simply put — there is immense marketing value in knowing an audience’s location.
Today’s geo-marketing activities are more advanced than some of the traditional strategies. For instance, by using beacon technology, a retail store could send a targeted message to someone walking by their business. The technology can also detect when that customer enters the store, and it can deliver additional messages to entice specific product purchases and speed up the checkout process.
The growth of mobile integration, big data management, and consumer’s trust in technology have all played a part in making location-based marketing more efficient.
Location-based marketing involves online, and offline tactics designed to help businesses plan and implement marketing activities based on consumers’ geographic location. (where they live, congregate or shop) At the heart of location-based-marketing is the use of consumer demographic and behavioral data to deliver relevant content to a highly-targeted audience.
For instance, let’s say you run a community base organization that operates within a high-risk population. It might benefit you to communicate with your audience that need your services but don’t know much about you. In this scenario, you could use a location-based marketing tactic like geo-conquesting to send information to prospects who enter a designated physical area near your neighborhood.
Location-based marketing isn’t just reserved for large corporations; small businesses and organizations can use this powerful marketing strategy to drive more targeted customers to their store.
Location-based technology is opening up a world of possibilities for every industry, but it’s also complicated, as new capabilities and use cases seem to emerge every day.
With the goal of breaking down some of the most important “geo” concepts to provide a better understanding of the basics, and a jumping off point for exploring how far the power of location may take us in the quest for new technology that helps find and engage target audiences for HIV prevention, we developed this tool on Geo Marketing and Geofencing technology.
What is Geofencing?
A geofence is a virtual perimeter around a specific location that measures when someone with a mobile device enters or exits the digital boundary in the physical world. These digital boundaries are typically pre-defined by marketers and mobile product applications through geofencing software.
Once a customer crosses the virtual perimeter, this information, usually called location data, can then be used to send real-time push messages to their device or up to the next 30 days for more timely, personalized experiences.
Some location providers might also offer an algorithm of various geo-spatial data points to determine the likelihood of a person crossing a general geofenced area. This information is best used for general marketing purposes.
Geofences used with mobile apps offer a couple of different options. Mobile operating systems (OS) have location services by default that marketers can use for geofencing.
Another option for geofencing with an app is to use proprietary location technology. This option opens a whole new world of possibility because proprietary geofencing software has the potential to accurately determine if a person has entered or exited the geofence. For example, a brand can detect when a customer enters their store or parking lot via their app to deliver timely reminders (e.g. loyalty card prompt) or effortless experiences (e.g. automated check-ins for mobile orders).
A good example of the use of an app in geofencing is Starbucks or Verizon. In this case, the consumer downloads the app for fast ordering, accumulating of points or start toward rewards or to buy and change services or products from their phones. These apps also detect when their customers are close to their stores or service centers and push notifications to their mobile devices with offers, discounts, and news to attract them to stop by and shop.
But downloading an app is not the only way geofencing works, all social media apps have location base services and can help pinpoint your location when you are inside a digital fence. The wi-fi service at malls, airports and parks can definitely help identify your mobile IP when you are in a place of interest for an advertiser.
Popular uses
Imagine a shopper getting alerts on Macy’s new spring sales when only a street away! Suddenly the user isn’t aware of just a good deal; they’re aware of a good deal within walking distance from their current location. For many, this type of marketing gets customers in the door, and much readier to buy. Focusing on physical locations, geofencing is a virtual trend that brick and mortar shops can take advantage of.
Marketing isn’t the only practical use for geofencing. Other popular examples of ways organizations and individuals can use geofencing to their advantage include:
- Personal reminders to accomplish certain tasks when in the area
- Smart devices, such as thermostats that adjust the temperature when the resident is walking into their home
- Security alerts when items move, such as BMW Trackstar.
- Promoting restaurant deals or drive incoming business. Consider targeting ads where future customers may be thinking of dinner, such as concerts, theatres or ticket kiosks
- Making sure certain pets, such as cats or dogs, are still in their respective neighborhoods
- Tracking shipments, keeping track of logistics and delivery timekeeping
- Keeping drones away from restricted airspace
- Safety messages for tourists when they wander too close to dangerous landmarks
- Alerts to parents of toddlers if they get out of the house, or if younger children leave the neighborhood
