This marketing strategy is based on geographic location , and it is very interesting to boost sales and generate brand recognition . After all, even if that consumer does not go to the beauty salon that same day, the company becomes a consumption option due to proximity, you know?
Continue reading to better understand what geofencing marketing is and find out why the strategy has become a trend !
What is geofencing marketing?
Geofencing marketing is nothing more than campaigns based on geolocation. In this context, location data, geographic segmentation, geomarketing, geofilters, among others, come into play.
If you look at the literal meaning of the terms, you will understand the concept better. The prefix “geo” comes from geographic location. “ Fencing” comes from “ fence ”, which means fence in English. So, geofencing is a kind of virtual geographic fence that establishes a limit for the broadcasting of campaigns , understand?
See also: Learn how to integrate paid media and organic media into a marketing strategy.
How does the strategy work?
Understand how geofencing marketing works
Learn more about geofencing marketing below!
First of all, the strategy is not based solely on displaying ads in the traditional way. That is, when the consumer searches on Google Maps, for example, to identify stores marked on the route. In fact, geofencing marketing has a more proactive approach .
It works more or less like this: if the consumer “enters” the geographic fence defined by the company, he receives content directly on his cell phone , such as discount coupons, promotions, reminders, offers, etc.
By the way, remember the beauty salon example we gave at the beginning of this article? Well, the same logic can also be applied to restaurants, cafes, clothing stores, cosmetics stores, and other local establishments. That is, consumers just need to walk within the defined radius to be impacted by the campaigns. Cool, right?
Worth reading: Phygital and the consumer experience.
Why has geofencing marketing become a trend?
According to Maximize Market Research , in 2022, the geofencing market was valued at US$908.15 million . And it is expected to grow by around 25.8% by 2029 .
In fact, all this growth is the result of changes in consumer behavior. According to data from the National Telecommunications Agency (Anatel), Brazil has around 252 million active mobile phone lines — more than the number of inhabitants , which is 214.3 million.
Furthermore, according to information vp it email list provided by IBGE, around 99.5% of people with internet access use their cell phones as their main device . It is clear that this behavior has brought business opportunities for brands in various niches.
After all, today, we depend on our smartphones even for simple everyday tasks . For example: checking the time, setting the alarm clock, browsing social media, communicating via WhatsApp, getting to our destination using GPS services and, of course, receiving and making calls.
What are the main benefits of geofencing marketing?
Geofencing marketing is timely and relevant. Therefore, it has high potential for engagement and conversion . Below, we will explain in more detail the advantages of investing in this tactic. Check it out!
Precise targeting
Imagine a person who works in a shopping mall and usually eats at nearby restaurants. If a nearby establishment sends a notification about a discount, for example, the likelihood of that consumer choosing that establishment for their meal is quite high, right?
Well, the fact is that geofencing marketing allows companies to take this segmentation to a whole new level. After all, with the strategy, it is possible to establish specific geographic zones to direct campaigns only to consumers physically present in those areas, you know?
Therefore, messages are only delivered to those who are most likely to be interested in the product or service.
Personalization
How about receiving personalized offers as soon as you set foot in a physical store, with discount coupons and recommendations based on your interests?
Based on location information and consumer habits , companies can better understand where customers are and why they are there. This allows them to create more relevant messages.
Also check out: How to ensure good service according to the 2023 Personalization and Engagement Report?
Engagement
In general, consumers do not need to make major changes to their routine to take advantage of the offers. After all, they are impacted by campaigns from companies that are nearby. In this context, the likelihood of an immediate visit to the store is greater. Therefore, geofencing marketing is efficient in increasing customer engagement and boosting sales .
