5 Ways Geofencing Marketing Pays for Itself Fast

how geofencing marketing pays for itself gps advertising profitability

If you want to market your business, you need to start geofencing now!

What is geofencing, you ask? Well, geofencing is a marketing strategy in which you send alerts and ads to people through their mobile electronic devices when they are within a targeted radius.

Before you start learning how to set up geofencing, you need to decide whether you are going to send out active alerts or passive alerts to prospective customers. When you send out active alerts, you utilize geofencing software such as GPS and radio frequency identification (RFID) to market your business.

Just make note that using active alerts requires your users to first opt-in to location services. If the people that opted into location services have also already opened your company’s app and passed through the barrier, they will then receive your business's messages.

If you choose to use passive alerts while geofencing, prospective customers will receive your alerts as long as they have their smartphones on and are connected to WiFi or are using cellular data while fenced within your designated area. Once you establish your alert system and set up your geofencing, you will notice the benefits of geofencing marketing immediately.

To prove to you how fast the pay-off can be when using geofencing marketing, we are going to tell you five profit inducing benefits that geofencing has.

Get ready to make some money!

1. Geofencing Marketing Enhances Local Sales

It is important to market your business locally because people that live and work local to your company are the most likely to become committed customers. Geofencing is a great way to market to your prospective local customers because it is a location-based system. Geofencing is a location-based system because it allows your business to define a geographic area to send people electronic advertisements through.

You can even use geofencing to send daily push notifications with limited time offers to people that live and work local to your company’s area. This is just one of many ways geofencing can dramatically increase local sales.

2. It Helps You Gather Data for Analysis

Geofencing marketing is a great tool to use to gather data for analysis because it allows you to track the customers that come into your establishment and use your geofencing coupons or special offers. 

By tracking the customers that came to your business due to your geofencing marketing, you can also track your geofencing sales, the duration of time that these customers spend in your business, and the frequency at which these customers visit your business.

All this data will help you predict your customers' behavior patterns so that you can better market to them in the future. This will, in turn, make your customers want to spend even more money at your business.

3. It Makes It Easier for You to Personalize Products for Your Customers

Due to the data that you collect through geofencing marketing, you can figure out the key demographics of your local population. You can also use this data to figure out what the interests and purchase history of your local population are. By learning this information, you can personalize the image and language of your geofencing advertisements to the interests and behavioral patterns of your prospective customers.

4. It Makes It Easier to Reach Prospective Customers

Due to geofencing marketing software such as mobile GPS and location services and radio frequency identification, you can easily target potential customers with accuracy. This makes it easy to send the people that are most likely to spend money at your business advertisements and special offers.

Utilizing geofencing to be proactive in reaching your local customers, will also allow you to beat out your local competitors that spend all their energy on more traditional forms of marketing. This will increase your profit that much more over time.

5. It Helps Increase Engagement and Brand Awareness

Another benefit of being one of these geofencing marketing companies rather than a company that only uses more traditional forms of marketing is that you are increasing your business’s engagement and brand awareness every day. Geofencing helps increase engagement by allowing you to send tailored made special offers directly to your prospective customers that have a high chance of sparking their interests. Geofencing also helps increase brand awareness by allowing you to advertise your business to people every day.

It’s All About That Money Honey!

With all these profit inducing benefits of geofencing, it is apparent that geofencing marketing is a money-making machine. The wide range of ways that geofencing marketing makes money will help your business save money as well. This is because you will not have to spend as much of your money in the areas that geofencing marketing benefits as you would have if you did not use geofencing marketing.

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