Is Geofencing a Part of Your Customer Acquisition Strategy?

customer acquisition strategy

Using Geofencing to Improve Customer Service and Sales

Geofencing marketing may sound a little like creeping on consumers, but it is actually an incredible opportunity to elevate your small business’s customer service as well as a great tool for your customer acquisition strategy. With the right approach, you can use geofencing to deliver content to consumers that enhances their experience and generates sales and loyalty for your brand.

For those who are new to geofencing marketing, it’s important to have a clear understanding of what the tool does. Geofencing allows you to deliver ads to consumers based on their location. You determine the locations where you want to capture consumers’ attention — whether that be on a competitor’s premises or your own — and the message you want to see and GPS does the rest.

Customers know the research available at their fingertips and mobile devices make it easy to access that research while shopping. Rather than fear that, use the knowledge to your advantage.

Effective Geofencing Marketing Takes Strategy

Geofencing marketing will be the most effective if you incorporate it into your customer acquisition strategy. Data on your top competitors or opportunities for increased sales can help you determine the locations where you need to target consumers.

Here are some of the conclusions you may draw from data:

  • Decreased traffic
  • Low number of repeat customers
  • Low conversion on a specific product

You may identify several opportunities for improvement. Focusing on one aspect of the business can be effective if you are working with a tight budget as it concentrates your resources on a specific effort. If you choose to address more than one opportunity, develop a unique strategy for each. For example, a spa might aim to increase traffic with new customers by running a 20 percent off your first experience’ ad delivered to consumers on a competitor’s premises, while addressing repeat customer numbers with daily skin care tips delivered to consumers on your property.

Once you’ve determined what your opportunities are, you need to decide whether you’ll use a branded form of geofencing or a third party. Apps can create a valuable connection with your audience and yield insightful data for future business decisions. However, a third party can also be a great help in supporting your geofencing efforts. SJC Marketing offers a strategic mix of channels for pushing out your messages and reaching the target market. By incorporating geofencing into the current tactics to support the strategy, your opportunity for peak performance and conversions increases significantly.

Geofencing Is a Content Marketing Opportunity

You should approach geofencing marketing as you would any content marketing opportunity because you will be delivering a message, however short or long, to the consumer. In light of this, your first question should be: what will bring value to my consumers?

Business 2 Community shares a great example of customer-centric geofencing marketing from North Face. The outdoor recreation brand used geofencing to deliver weather notifications that increased both store visits and purchases. This is proof that bringing value to consumers’ lives can be a more effective sales tactic than a sales pitch.

A few other content types customers value are:

  • Customer reviews
  • Coupons
  • Bonus loyalty point offers
  • Cause-related opportunities

Team SJC loves to help brands brainstorm and create content marketing that brings value to their consumers as well as a high return on investment. If geofencing marketing or any other aspect of your customer acquisition strategy is beyond the expertise area or manpower of your business, give us a call.

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