Four No-Fail Geo-fencing Strategies for Retailers

By the Editors

Chances are if you are familiar with the mobile marketing space, you’ve probably heard of geo-fencing. But in case you don’t know much about the concept, geo-fencing is a location-based marketing strategy that allows business owners to put up an invisible fence in an area of their choice. When potential customers enter the designated geo-fence area, they receive a message from the business that most often encourages them to opt-in to gain access to an exclusive deal.

A number of retailers have had significant success with this form of location-based marketing, and it’s no wonder! Few customers can resist a good deal, especially if the deal is coming from a favorite store that’s close by. If you are interested in using geo-fencing to connect with potential customers in your area, here are four things that you need to know.

Where your customers are

Understanding where your customers are is the key to any successful geo-fencing campaign. Do many of your customers have breakfast at a nearby restaurant? Or maybe they frequent another retailer just down the road. The first step on the road to success with geo-fencing is making sure you are setting up the perimeter where your customers are spending their time. Some market research can help get you off on the right foot with your next location-based campaign.

What time they’re there

As we’ve mentioned previously, timing is a factor in any marketing campaign. The same goes with geo-fencing. Chances are your store and nearby retailers probably have a busy time of day. Perhaps your customers like to shop during their lunch hour or your business is always bustling on Saturday mornings. When you are developing your campaign strategy, think about timing. You want to set up your geo-fence in an area where your customers hang out, but you also want to make sure they will actually be there to opt-in when the campaign is running!

What your customers want to hear

Effective calls to action are especially important in the case of geo-fencing. Why? Because you’ve got to be offering something compelling for customers to opt-in. So don’t try to entice them by telling them how great your business is. Be sure to let them know how you’re creating value for them. Sometimes something as simple as, “Click here for an exclusive 30% off deal – one day only!” is enough of a hook, especially if you are targeting customers who are likely to shop at your store anyway.

Where customers are coming from and where they aren’t

If you are running a location-based campaign, you always want to make sure you’re tracking your data. Otherwise, how are you going to know where your customers were coming from? It’s impossible to track which strategies were effective and which weren’t if you aren’t collecting data from your campaign in some way. You can use the information you gather to inform your next location-based campaign and increase your chances of success!

Location-based campaigns are highly successful when business owners take the time to do their homework and learn about customer demographics and behavior.