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Are you looking to connect with target audiences better than ever before and thrive in the increasingly competitive business landscape? If so, consider Geofencing—a marketing strategy that allows businesses to reach their audiences with highly targeted ads to increase conversions.

What Exactly Is Geofencing?

In a nutshell, it’s a location-based marketing strategy that connects with smartphone users in a specific geographical area. It’s an ideal example of using digital marketing strategies to drive business to brick-and-mortar stores.

The term ‘Geofencing’ refers to the virtual boundary constructed around the business’s operation area. For this, it relies on technologies such as RFID (radio frequency identification), GPS (global positioning system), Bluetooth, and Wi-Fi.

How Does It Work?

After a business creates a geofence in its operation area, users are added to the advertising audience depending on their movement – i.e., as they enter or leave the specified geographic area. Geotargeting automatically sends location-based marketing data such as social media advertisements, alerts, text messages, and mobile push notifications, to name a few. The advertisements can be promotions, discounts, offers, invitations, or informative marketing content to create brand awareness.

The geofence can be created virtually anywhere—including your competitor’s location to lure away their customers with better offers. Other sites targeted with the geofencing marketing strategy include households (through addressable geofencing), nearby streets, trade shows and events, and institutions.

What Are The Benefits?

Geofencing is an attractive marketing strategy. Its effectiveness is rooted in the proliferation of smartphones as seminal devices in people’s day-to-day lives. According to industry statistics, over 3.5 billion smartphone users worldwide spend nearly 4 hours every day staring at the screens. With this in mind, here are three ways geofencing can improve your business outcomes:

Improve User Engagement: With geofencing, a business can send shareable content and promote location-based stories to drive traffic. A good example is creating a conversation around an ongoing/upcoming event in the area to boost attendance.

Enhance Customer Loyalty: According to an article appearing in the Harvard Business Review, increasing customer retention by as little as 5% could bring rewards in the tune of a 95% increase in revenue. This statistic shows the importance of facilitating customer loyalty. Geofencing marketing allows businesses to send relevant and targeted promotions that keep customers returning to your establishment every time they’re in the vicinity.

Allows Optimization Through Analytics: Geofencing will enable businesses to measure different metrics such as sales, time spent in a store, frequency of visits, etc. This valuable information can be used to fine-tune marketing strategies and provide personalized ads for customers.

For more on leveraging the power of geofencing as an effective marketing strategy, reach out to Edge Digital by calling (888) 404-5850. It’s our mission to accelerate your business growth with the help of digital power.