How Geofencing Marketing Can Help You Outpace Competitors and Boost Conversions

How Geofencing Marketing Can Help You Outpace Competitors and Boost Conversions

What is Geofencing Marketing and How Does It Work?

In a world where mobile devices rule the marketplace, location-based advertising has quickly become a game changer. But how can you harness this technology to stand out from the crowd? Enter geofencing marketing. Imagine having the ability to deliver targeted ads to potential customers as they pass by your competitor’s storefront. With geofencing marketing, this isn’t a fantasy — it’s reality.
But how does geofencing marketing work? Essentially, it involves creating a virtual “fence” around a specific geographic location, such as a competitor’s store or a high-traffic area. When a person enters this zone with their smartphone, they receive relevant ads or offers that encourage them to take action. This real-time engagement strategy is a clever way to target the right customers at the right moment.
Ready to explore how geofencing marketing can elevate your strategy? Let’s dive into the fascinating world of geofencing for competitive conquest, where businesses can win over their competitors’ customers by delivering timely, irresistible offers.

Geofencing for Competitive Conquest: Outpacing Your Competitors

One of the most exciting applications of geofencing marketing is competitive conquest. This concept involves setting up geofences around your competitor’s locations — whether it’s a store, restaurant, or service provider — and using these digital boundaries to push ads, promotions, or discounts directly to their customers as they walk in or out of your competitor’s location.
This form of hyper-localized marketing is underutilized but highly effective. Imagine you’re a coffee shop owner, and every time a customer walks into a rival coffee shop, they get a notification on their phone offering them a free coffee or discount at your café just a block away. This approach allows you to not only get on your competitors’ radar but also actively poach their customers by offering better deals, superior services, or timely promotions.

How Does Competitive Conquest Through Geofencing Work?

Set Your Geofence: Use GPS or RFID technology to create a digital perimeter (usually between 1,000 to 5,000 square feet) around your competitor’s location.
Push Timely Ads: As soon as someone enters the geofence with a mobile device, your ad, promotion, or coupon is pushed to their phone.
Engage with Customers in Real-Time: Customers who see your offer while visiting a competitor may be more likely to consider your brand, especially if the promotion is time-sensitive and valuable.
Measure Conversions: Track which users interacted with your ad and whether they later visited your location or redeemed the offer.

Use Cases for Geofencing Marketing

Geofencing marketing isn’t limited to competitive conquest. Here are five additional use cases to demonstrate how versatile this strategy can be:
1. Retail Store Promotions
Retailers can set up geofences around their own stores to attract customers within a nearby radius. When shoppers pass by, they can receive notifications about flash sales, exclusive offers, or new arrivals. This approach boosts foot traffic by targeting local, on-the-go customers who may be unaware of ongoing promotions.
2. Event-Based Geofencing
For businesses hosting or sponsoring events, geofencing can engage attendees with targeted ads or promotions. For example, if you’re a beverage company sponsoring a music festival, you can set up a geofence around the event space and send attendees drink vouchers, encouraging them to try your product. This ensures that your brand stays top-of-mind in an active, engaged crowd.
3. Restaurant and Food Service Promotions
Restaurants can create geofences around competitor eateries, targeting potential diners with enticing meal deals, happy hour offers, or new menu items. Imagine walking out of a fast-food joint only to receive an ad from a nearby restaurant offering a gourmet burger at the same price. The temptation to upgrade is real — and the results can be game-changing.
4. Healthcare Providers Targeting Competitor Clinics
Doctors’ offices or urgent care centers can set geofences around competing healthcare facilities. When patients visit a competitor for a service, your clinic can send them personalized ads offering better prices, more comprehensive care, or quicker appointment bookings. This tactic builds brand awareness and can be the difference-maker in a customer’s future healthcare decisions.
5. Fitness Centers Targeting Gyms
Fitness centers can set geofences around competitor gyms, offering free trial memberships or personal training sessions. For instance, when someone enters a competitor gym, your gym’s app could push a notification offering a free personal training session or a special membership deal, pulling them away from the competition.

How to Measure ROI in Geofencing Marketing

When it comes to geofencing marketing, the success of your campaign can be measured using several key metrics:
Impressions: This metric measures how many people saw your ad when they entered the geofence.
Click-Through Rate (CTR): This tracks how many users clicked on the ad after seeing it.
Cost Per Thousand Impressions (CPM): Compare the CPM of geofencing ads with traditional media, such as billboards or radio ads. Geofencing often yields a more cost-effective CPM due to its precise targeting.
Conversion Rate: How many customers redeemed the offer? Did they make a purchase after seeing the ad? Conversion rates can be tracked using unique promo codes, in-store visit tracking, or app-based engagement.
Foot Traffic Attribution: Use GPS tracking to measure how many customers entered your store after receiving a geofencing ad. This data provides insight into how effective your campaign is at driving foot traffic.

FAQ: Geofencing Marketing for Brands and Agencies

1. How precise is geofencing technology?
Geofencing technology is highly accurate, usually within a range of 100 to 1,000 feet, making it ideal for targeting specific locations like competitor stores, events, or even entire neighborhoods.
2. Is geofencing marketing expensive?
Costs can vary based on the complexity of the campaign, but geofencing marketing is generally more cost-effective than traditional forms of advertising due to its precise targeting and measurable ROI.
3. Can small businesses benefit from geofencing marketing?
Absolutely! Geofencing marketing is an excellent tool for small businesses because it allows them to target local customers in real-time with highly relevant offers.
4. What industries can benefit the most from geofencing marketing?
Retail, restaurants, healthcare, fitness, and events all benefit greatly from geofencing marketing because they rely heavily on local foot traffic and timely promotions.
5. How does geofencing compare to traditional location-based advertising?
While traditional location-based advertising like billboards offers brand visibility, geofencing marketing is much more dynamic and personalized, allowing businesses to engage with customers in real-time and track direct conversions.

Conclusion

Geofencing marketing is not just an innovative tool; it’s a game-changer, especially when it comes to competitive conquest. Whether you’re a small business looking to attract local customers or a large brand eager to outsmart competitors, geofencing provides an effective, real-time solution. Want to learn more about how this cutting-edge advertising technique can work for your business? Request our Media Kit today and watch the video below to explore more innovative marketing solutions tailored to your needs.

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