Mobile smartphones are now intrinsic to our lives. Consumers are constantly using their smartphones to check messages, update and search. By 2020, 2.5 billion people will own a smartphone. In Australia, 88% of the population own a smartphone and look at their small screens an average of 35 times per day. These statistics, along with the amount of new ways to interact with consumers are convincing marketers to focus on mobile. The mobile migration can’t be ignored.
One of these new avenues for consumer engagement is geo-fencing. So what is it? A geo-fence is a virtual perimeter for a real-world geographic area. While not a completely new technology, it’s been growing in popularity with the continuing sophistication of smartphone devices. The deluge of data that has become available from smartphone users now include their whereabouts. Not only can businesses use people’s location data to identify the right kind of consumer, they can engage them at the right time and the right place.
Here are three of many important factors as to why you should consider geo-fencing.
Consumers are on the move
People use their phones at home, work and everywhere in between. The results of a national survey by the UK government revealed 7 out of 10 adults (68%) accessed the internet ‘on the go’.
This is why geo-fencing has become an incredibly effective marketing strategy. Businesses can now tailor mobile campaigns for their ideal consumer when they are in an ideal location, i.e. close to their shopfront. Promotions, deals, and information can be sent to directly to their target audience’s phone at the moment they are looking to buy.
One new strategy to arise from this is competitive conquesting, which is setting a geo-fence around a competitor’s business location. This ingenious ploy can let you see how when your ideal consumer is in your competitor’s space, and lead them towards your business with targeted ads.
The digital shopping assistant
At its worst, geo-fencing builds brand awareness. An otherwise unaware commuter, will learn the location of your business. At its best, geo-fencing will lead the commuter through the doors of your business to make a purchase, and they may even thank you for it. The more information you have available on mobile, the happier the customer.
Opening hours, stock availability, and contact information all influence a customer’s decision to engage with a business. Also, when defining the boundaries of a geo-fence around a business you want pedestrians to visit, a radius of less than five minutes of travel time is optimal.
Once inside, businesses can allow smartphones to cater to their customers needs too. 82% of smartphone users turn to their phone screens while shopping in-store to help them decide on a purchase. With the right applications, geo-fencing combined with push notifications can send offers and information directly to shopper’s phones.
While business owners have been lamenting over the trend of ‘showrooming’, the idea that e-commerce has turned physical shops into display floors for patrons to browse and then shop online later for a better deal, marketers can turn a smartphone into a personal shopping assistant. The educated consumer uses all the resources available to them in the moment, and geo-fencing allows marketers to be there for that moment too.
A new dimension
You can use location targeting to steer new customers into your store, and you can use the location of your current in-store customers to keep them happy and even locate new ones.
By incorporating geo-fencing into your marketing, you can add an extra data point to your analysis. Technology can now track willing mobile user’s purchases, how much time they spend in-store, and how many times they visit.
With geo-fencing, you don’t have to survey every customer that walks into your business. This data allows you to better understand your current customers, and better tailor your products or services.
Figuring out the what to do with that data is where a competent marketer will come in handy, so contact tprmedia if you want to learn more about what geo-fencing can do for your business.
