How Enterprises Can Use Geofence Marketing to Boost Customer Loyalty
Reaching customers through location-based marketing offers an incredible opportunity to personalize campaigns and increase loyalty. Geofencing is one location-based tactic that provides the opportunity to retarget customers, engage returning ones, and deliver high-value messaging. Let’s take a look at the potential geofencing has within enterprise marketing efforts and how to build the right campaign.
What is Geofence Marketing?
Geofence marketing uses a location boundary to trigger actions. Instead of focusing on the customer’s primary location, geofencing places a virtual “fence” around a particular brick-and-mortar location or a competitor’s store, for example. It engages mobile users in real-time.
When a mobile device enters this area, it triggers a series of actions based on a marketing goal. For example, if the boundary is around a competitor’s location, the customer may receive a 10% off coupon for your store next door. The SMS message triggers as soon as the customer walks across the threshold of the virtual fence.
Geofencing versus geotargeting: why the distinction matters
Geotargeting segments an audience based on certain criteria within a location, such as women ages 18-21 in a certain zip code. While geotargeting has a time and place for usage, geofencing offers enterprises a range of benefits:
- Measure conversion zones: Geofencing allows the enterprise to measure conversions more accurately, thanks to better tracking.
- More precise targeting: You can narrow your target audience by demographic, but conversion will still be hit or miss. If that customer is already near a specific location, it makes that incentive all the more powerful.
- Conquesting campaigns: Enterprises making in-roads within a new market can use geofencing to entice a competitor’s customers in a way that offers high value with less intrusion. This tactic also gives you valuable insight into which of your existing customers also frequent a competitor location.
Geofencing Use Cases
Enterprises can use geofencing to create a personalized and engaging customer experience across large distances and multilayered offerings unique to the enterprise framework. Here are a few common use cases that help launch quality customer experiences and improve engagement.
Create effective local ads
Enterprises operate across borders, making marketing campaigns a critical detail. Geofencing allows an enterprise to create effective hyperlocal ads that target customers specifically in the area. With enter/exit triggers, customers see ads based on what appeals to them.
Layer geofencing data with other data for personalized campaigns
You don’t have to give up other data for personalized campaigns. Geofencing adds another layer of timeliness to segmentation, allowing enterprises to target not only a certain demographic but that specific demographic at exactly the right time.
Launch competitor targeting
Targeting competitor locations with geofencing helps enterprises gain market shares through customer engagement. For example, if an enterprise is falling behind a competitor in one specific location, it can leverage geofencing to entice customers away from its competition. Instead of tossing out costly coupons to everyone, for example, customers who cross into a certain competitor location receive them, incentivizing customers to shop elsewhere.
Retarget ideal customers with time and date functions
Combining time and date with geofencing helps re-engage customers. For example, if a customer visited a certain location and did not make a purchase, they can receive a high-value incentive to return after a certain amount of time has passed. If they’re repeat customers, time and date can help the enterprise offer loyalty rewards.
Gather data through surveys based on point of interest locations
Gathering customer experience data from offline locations is notoriously hit and miss. Customer surveys driven by a geofencing campaign could offer insights into customer behavior offline, an invaluable resource when combined with insights from the online activity of the same customers. This offers the enterprise valuable insights into how offline locations are faring.
Tips for effective geofencing campaigns
Building an effective geofencing campaign requires thought. Here’s how to build a campaign that converts.
A. Consider the area carefully
Optimize triggers so that customers are more likely to take action. If your exit nudge happens too late or your area is too wide, customers aren’t nearly as likely to take the action you want. Consider:
- What specific purpose your geofence serves
- The required action for conversion (i.e., are your customers meant to purchase something? Cross a threshold? Turn away from competitors?)
- The metric for success
B. Overlay behavioral targeting for highly personalized campaigns
Personalization is everything. Personalization can improve conversions, so leveraging geofencing with behavioral targeting can create an engaging brand experience, even with the largest enterprises.
C. Offer high-value content
Valuable content is context-specific. Customers who are already at a location are more likely to buy, and triggering incentives for that moment offers them more value than advertisements pushed to just anyone.
D. Analyze, optimize, and pivot
Geofencing requires analysis and optimization. Like any marketing strategy, there should be precise analytics for conversion rates, and enterprises should use these metrics to pivot campaigns as necessary. Tactics like A/B testing and audience segmentation can further optimize a geofencing campaign.
Geofencing for the Enterprise
Enterprises need geofencing for the personalization and targeting it offers. Alongside valuable data for actual physical locations and the ability to combine it with behavioral analytics, geofencing offers a lot of potential for customer engagement and experience.
CleverTap offers an engagement-focused platform designed for analytics and automation. Enterprises can use the platform to measure conversion, test new personalization methods, and learn more about customer interactions. Contact us for a demo of the platform and find out how easy it is to deliver an engaging experience for customers across the enterprise.