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Why Your Local Business Should Use Geofencing Marketing (and How to Use it) to Boost Sales

Local Businesses Should Use Geofencing Marketing
Image Credit: MONOPOLY919/Shutterstock.com

Are you wondering how a geofencing marketing strategy can help you increase leads and sales? Do you want to know why geofencing marketing is perfect for your local business?

Why Your Local Business Needs a Geofencing Strategy

There are various grounds for using geofencing marketing strategies for local business growth. One such reason is that mobile marketing has become commonplace among marketers, regardless of industry.

Based on a recent report, mobile gadgets account for almost 55% (over half) of global web traffic in Q1 of 2021. Furthermore, consumers spend the bulk of their time online through the use of mobile applications.

Experts predict that the time users spend on mobile apps daily will reach 227 minutes per day in 2022. That’s reasonable enough to note that geofencing marketing is an essential marketing strategy your business should be using.

The Benefits of Geofencing Marketing

Although there are more than enough benefits to using this digital marketing tool, I’m highlighting only a few of them.

Customized Customer Offers

Geofencing marketing is remarkable because it allows you to gather consumers’ data and use the information to serve them better. How? The data you collect enables you to personalize your marketing message and product or service offers according to buyers’ needs.

It gives you data about your customers and details about products or services that interest them. Thus, by putting all that information together, you will address their issues and provide enticing offers to boost your ROIs.

Increase Foot Traffic and Sales

Much as Google My Business (GMB) can improve local SEO rankings, a Geofencing strategy can increase your local search visibility. Why? That’s because this business model is a location-based marketing tactic that lets you target buyers in a defined location using push notification.

As a result, it lets you send notifications of:

  • New product arrivals
  • Special offers
  • Coupons
  • Discount goods, and more

These marketing undertakings help draw in more customers and prospects to your business and increase leads and sales.

Better Customer Targeting

Geofencing is also beneficial because it helps you target customers in particular locations with relevant marketing messages and offers at the best times. The software also gives you the option to filter your targets with special targeting features. Moreover, it allows you to send your marketing content, offers and ad campaigns only to your target market.

Other advantages of geofencing growth hacking include:

  • Better data collection
  • Personalized customer experience
  • Disburse efficiently

How to Use a Geofencing Strategy to Increase Retail Sales

As you can see, geofencing marketing techniques can help you connect with your target customers, increase foot traffic – and build customer loyalty.

By customizing your offers and targeting consumers according to customer information, you will grow your business significantly. That said, let’s consider how to leverage geofencing marketing to increase ROIs.

1. Target Buyers in Your Business’ Perimeter With Geofencing

Using geofencing to target shoppers in your area is an efficient way to increase brand awareness, drive consumer traffic and sales. Therefore, use the tool to target potential customers who live and work within your geofencing boundary.

Send them notifications of any new products, special offers, and more. As a result, you will boost leads and sales.

2. Use Push Notifications to Share Brand Story and Build Trust

Another effective way to drive foot traffic and increase sales to your local store is to share your brand story. Brand storytelling helps you connect better with local customers and build trust. Stories give consumers an inside look into your company’s culture, which helps to establish credibility.

Moreover, you can send push notifications of blog content to help potential customers understand more about your business operations. Some local business owners overlook this strategy because they believe that a local brand does not need a blog.

On the contrary, combining blogs and push will scale your business faster than you can imagine. This approach is vital because not all consumers will buy on the first visit. Thus, it would help if you nurtured them to qualify as leads.

You can meet this goal by regularly sending updates of your latest blog articles. It could be content about new products or services, upcoming events, or special offers. However, whatever content you share from your blog should harmonize with your brand goal.

Also, the articles must be informative and compelling enough to move readers to action. For this, you may need to perform subsidiary research to establish facts and build your credibility. So, use marketing content to nurture and help them qualify as leads and paying customers.

3. Feed on Competitors’ Customers With Geofencing Strategy

As stated earlier, geofencing enables you to position your virtual fence around competitors’ businesses and dispatch marketing campaigns accordingly. The ad campaigns you send help you draw competitors’ customers to your local business.

This digital marketing tool will assist you in meeting this goal by targeting customers of your direct competitors. That is, shoppers who buy the same products you sell from other shop owners.

With geofencing marketing, you can send special offers and other advertising campaign notifications to entice consumers to your local brand. It helps you increase sales dramatically.

4. Use Geofencing to Attract Shoppers Who Visit Other Businesses

This step is similar to the above technique. But in this case, you’re not looking to entice the buyers of your direct competition. Instead, you’re targeting customers of your indirect competitors. What do I mean?

Let’s say you operate a car wash or auto wash service center, and you have several auto mechanics around your locale specializing in auto repairs. They are your indirect competitors. It is highly likely that after auto repairs, the customers may want to clean/wash their cars before going home.

Otherwise stated, let’s assume that you’re dealing in footwear, and there are retailers in your area who’re selling dress wear. These are your indirect competitors. Consumers who frequently update their wardrobes are likely to get some new footwear to go along with the clothes. Thus, you can use geofencing to bring them to your local business.

Top Geofencing Platforms

Many digital platforms provide remarkable geofencing services. You can employ their services to scale your local business quickly. Thus, here are some of the best geofencing platforms for your consideration:

  • Propellant Media
  • PushMaze
  • ReachLocal
  • Fencer.io
  • Dealer Strong
  • Phunware

How Does Geofencing Work?

Geofencing may seem complicated, but it is a straightforward marketing technique with fantastic ROIs. It lets you stand out and outperform the competition. So, how does it work?

Here’s how geofencing works:

To illustrate, you have a physical store with local competitors all around you. In this case, you have intense competition, and you need to outsmart them to boost sales. But how? That is where geofencing marketing plays a crucial role.

You can use a geofencing strategy to manage consumers in your territory. How? You can conveniently meet this goal by creating a virtual fence in those locations.

Once set up, anyone with an intelligent device who lives or enters your defined territory of virtual fencing will automatically get added to your email list. Hence, email subscribers will receive regular marketing messages and offers via ad notifications in the coming 30 days.

This marketing hack gives you an edge over your competitors. That’s because you can set up your geofencing marketing tool near or around their spot and draw their customers to your shop.

The process also allows you to set a time when your notifications will show up on consumers’ mobile apps and web pages. That way, you will drive leads and increase sales.

Are You Ready to Start Using Geofencing?

According to consumers’ insights, geofencing can help you build your local presence and grow your business quickly with data-driven ad campaigns.

The tool will help you:

  • Establish brand awareness
  • Drive more local traffic
  • Increase leads
  • Optimize sales

Therefore, use a geofencing system to build a virtual fence and market to potential customers within your virtual boundary. Comment below and let us hear about your experiences with geofencing.

Moss Clement

Moss Clement is a blogger and freelance writer who delivers high-quality content via writing services such as: blog post writing, article writing, ghost writing, etc.

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