How to use Geofencing to Grow Your Small Business?

By Snigdha | July 10, 2018 2:59 pm

App Builder Appy Pie: In the recent times there has been a 61.5% increase in the paid social media spend and that has resulted in the customers being bombarded with a huge range of promotional messages from almost every other marketer. It is for this reason that the click-through rate (CTR) today is only hovering at a mere 0.5% across all the formats and placements of ads. This is where geofencing can come to your rescue and to the rescue of your small business. Geofencing essentially is the concept of putting up a virtual fence around a pre-defined geographical area with the intent to promote your business.

This is a competitive world, to say the least and it has become very important for the business to become creative and figure out new ways to grab their attention and keep them engaged. Geofencing is one of the more unique ideas that empowers businesses to provide a variety of content to a device user on the basis of their geographical location at that moment. Now when we say device we include all kinds including a desktop computer, a mobile phone, or even a smartwatch!

“Did you know that the geofencing industry is expected to grow by 27% by the year 2022?”

In the recent past, the use of this technology has been growing manifold across a whole lot of industry verticals. Geofencing finds application today in social media, human resources, telematics, cyber-security, and marketing.

According to the configuration with the device, this new age technology can trigger push notifications on mobile devices, showcase targeted ads on social media, send out text messages, and offer to you marketing data that is location-based.

Geofencing is a service that lets the businesses access the location of people in a particular area and send them a message. A geofenced includes triggers or actions that take place whenever a customer goes in or out of the specific area.

According to a recent research 64% of the American adult population own a smartphone and among the young adults the percentage is even higher – 85%! It is this market penetration of the modern age smartphone that has raised geofencing as an ideal and leading local advertising tactic among the others.

How does it work?

The technology of geofencing lets you draw a virtual perimeter and demarcate a real-life geographic places. This geographic fencing or geofencing can be custom drawn so that it is built around the surroundings or the perimeter of the place of business or within a fixed perimeter or circumference of your place of business.

Once this perimeter has been set up and secured, anyone who has your app and has granted you the permission for location can be tracked using location-services within this area that has been earmarked for your geofencing campaign. This means that whenever such a person enters or exits this area, an alert would be triggered and your SMS, push notification, or any other kind of message would be sent out to them.

How to get the most out of geofencing?

Now, we need to understand the kind of market a smartphone has opened up for us. A recent research established that 64% of the adult American population is using a smartphone and 85% of young adults own a smartphone. It is this huge adoption of smartphones that has compelled every possible industry to sit up and take notice of this evolving world of mobile technology.

As a DIY app building platform that has always offered some of the most cutting-edge technologies to their clients, we have observed and emulated some choice ways to get the most out of geofencing. So, let’s get right to it!

1. Define Parameters Precisely

The targeted market and the recipient or the audience of your marketing efforts are usually quite well defined, however, when it actually comes to the execution bit, it is tough to be certain that what kind of people would actually be exposed to the material you send out. In case of geofencing the fun part is that the marketing efforts can be defined to reach highly precise audience. This means if I own a restaurant on the pier and I want to let people know about the latest addition to the menu, I would be sending out a broadcast to everyone who is in the 15-mile radius and then geofence the exact area where I would want people to think about my restaurant!

2. Go Hyper Local

Now, it is easy to be tempted by the number of people you want to reach out to, through your brand new geofencing campaign, but it is important to remember that geofencing is the most effective when you go hyperlocal with it. This means that if I have a salon on the square, I would do well to reach people who are currently within a five-minute drive radius. It is unrealistic to expect people to drive down or walk down from anything more than that!

3. Use A/B Testing

Whenever you are launching a new product, a service, a portal, an app, or even a campaign, we cannot stress enough on the importance of A/B testing. Geofencing is no different from any other ad campaign in this regard. You can test multiple types of content in order to see which works the best. This testing can be carried out for the copy in the ad, the colors used, and the kind of deal or coupon that you are using or putting out on the ad. Hence, if you have a pub, happy hours might draw in more people than a free round of peanuts! Apart from testing all these things out, test out different locations as well.

4. Identify Your Target Audience

Like any other ad campaign, it is the target audience that is of the greatest importance and of the most critical value. In geofencing ad campaigns, you have the ability to filter the targeted audience on the basis of demographics and interests so that you can reach the audience best suited for your business. So, let’s say that I have a retail store, it would do me well to target the VIP or premium card holders or people who visit your competitor in the area.

5. Understand the Customers Better

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For any marketing campaign to be successful it is important that you are aware of the kind of customers you are planning the campaign for. Geofencing can actually help you get a better understanding of the audience that you are targeting. Geofencing is a location-based technology that can bring in a whole lot data about the consumers, which you can then further make use of this data that emerges to better your understanding. This location-based technology can offer you a view and an opportunity to study the behavior of your customers or prospective customers like the number of times they have been to your stores or the frequency of their visits (once a week, once a month, etc.) or even the kind of places they go to before stopping by at your store.

6. Offer Valuable & Relevant Content

Any content that you want to send out to the consumers would only work if it holds relevance, value, and meaning for the customers. The customers today are getting a barrage of messages that are being thrown at them every minute. It is only natural that they would miss out on the pertinent information. This means that if you own a beauty salon, then offering a special deal around days like Valentine’s Day or New Year’s Eve would bring in a good response. A well-timed holiday ad can help customers find something that they were actually looking for – your deal!

What are the different types of Advertising & Consumer Communication using Geofencing?

1. Display Ads

Of all the different types listed here, this one is the most popular technique. The use of geofencing in display advertising is being used most commonly by the big names. What you need to do here is integrate particular IP addresses or specific mobile locations into your ad campaigns. This would allow the native ads to be released in a controlled manner to specific people based on their location hence be targeted better.

2. SMS or Push Notifications

It is possible to set up geofences that can directly communicate with a device on the basis of its location. Once the mobile device owner gives their permission, the marketer can then send an SMS or a push notification via the mobile app. This message could be a marketing message or general alerts for activities including deliveries or pickups like in case of e-retailers or food delivery services.

3. Content

In the context of video and audio serving technologies, location can in fact be used to trigger any content that is relevant on the basis of the IP address from the device or the location feature of the mobile application on the device. The radio industry already is making good use of geofencing technology and the creativity of the media industry can be put to good use in delivering relevant content using geofencing.

4. Social Media Ads

Everyone is on the social network these days and they are there for more than just socializing or networking. People are referring to the social media to stay up to date with the current events, to find services they need and even for recommendations. Social media ads that make use of geofencing, use the location information in order to display suitable social media ads to the appropriate audience. This comes in particularly handy for platforms like Twitter in particular where 80% of the users are interacting with the platform on the mobiles.

Popular Geofencing Platforms for Small Businesses

While it is possible to implement geofencing on your own for your business, you would have to have strong technical expertise for its implementation. A better idea though is to look into companies that offer Geofencing services for business.

1. ReachLocal

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app creator free

3. Phunware

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4. DealerStrong

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However, one of the easiest ways to get this done is going to our DIY app building platform and simply drag and drop the geo push notifications in your app and you do not have to worry one bit about it either.

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About The Author

The Content Manager at Appy Pie, Snigdha has had a passion for writing since she can remember and feels lucky for making it her career. With a total experience of 11 years, she has dedicated the last 6 years to hard-core content writing and management. She actively writes about all things related to Social Media & more. In her spare time, she would either love to read curled up on the couch or take a bag of necessities (including a good book) and drive off into the sunset.

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