Boost Your Marketing with Geo- fencing!

​In this digital age, promoting a business is no longer limited to conventional methods such as distributing brochures or placing enormous billboards on the street. Business owners must be more innovative in marketing their businesses. One strategy that is currently gaining popularity is Geo-fencing marketing, a powerful tool to help businesses to reach potential customers at the right time and right place. The term may still sound unfamiliar in Indonesia. However, countries such as those in Europe, America, and the Asia Pacific, including India and China, have already begun implementing this strategy. Don’t worry, this article will explore this term in more detail, in a light yet informative way!

What is Geo-fencing Marketing?

A specific location-based marketing strategy that uses GPS (Global Positioning System) or RFID (Radio Frequency Identification) to trigger actions (advertisements, notifications, or offers) when potential customers enter a specific geographic area, also known as a “Digital Market Zone.”

Here’s a simple example: Imagine you own a coffee shop in Kemang, South Jakarta. Now, when someone passes by your cafe (within 500 meters) and has an internet-connected phone, they’ll receive an SMS or push notification on their phone screen. The notification could contain promotional information, such as “15% off this morning’s Americano and sandwich package! Only valid until 11 a.m., come on by!”

Thus, with minimal promotion, you might draw possible patrons nearby your cafe. More targeted, efficient, and cost-effective, right?

Why is Geofencing Marketing an Effective Strategy ?

This strategy is not only more sophisticated, but it’s also proven to increase engagement and conversions. Here are some reasons:

1. Targeted Reach

It enables you to connect with the customer, when they are physically near your business location. Increasing the likelihood of a store visit and purchase.

2. Real-Time Marketing

You are able to quickly send promotions, notifications, or special messages when customers enter your business area. This way, your messages appear when they need them.

3. More Accurate Data and Analytics

This strategy helps you to track consumer behavior, such as how many customers enter your location, how many make purchases, and how effective your promotional campaigns are. This makes your marketing strategy more measurable and accurate.

4. Cost Efficiency

Rather than pursuing promotion and using extra funds without knowing your buyers, this tactic lets you aim for more suitable future buyers, thereby saving and utilizing your promotion funds with greater impact.

How to Implement This Strategy Effectively and Targetedly ?

Here are some things business owners should consider to maximize geofencing marketing benefits:

1. Use It as a Multi-Channel Trigger

Marketing strategies in today’s era can no longer stand alone. They must be integrated. A location-based multi-channel system can act as a bridge to connect your various marketing channels, from email and social media to digital advertising. For example, someone near your business location can immediately receive a notification about an ongoing promotion. They will then be directed to a landing page and offered to follow your business’s Instagram account. This system can also perform retargeting through digital advertising. Everything will be connected and relevant. As a result, your business campaign will be more organized, personalized, and effective.

2. To Avoid Sending Random Messages, Use Consumer Segmentation

By combining location and behavioral data, you can provide offers that are tailored to your potential customers’ needs.

3. Conducting Trial & Error and Data Optimization

Conduct A/B testing for various variables such as location radius, geofence duration, and the geofence location itself. These variables can facilitate subsequent marketing strategies, such as creating promotional content for your product or brand.

4. Planning the Right Time According to Customer Behavior

Set notifications or offers to appear when consumers are most likely to need them, and tailor them to the type of product you’re selling. If you’re selling F&B products, schedule content to appear during lunch hours or on weekends.

5. Maintaining Content Frequency

Regulating and limiting the frequency of content displayed to avoid annoying potential customers. Focus on message quality, not quantity.

It’s Time for Your Business to Go Digital!

Geofencing marketing is not only growing trend, but also a powerful tool to boost marketing effectiveness , also connects physical and digital experience seamlessly. It is a better, faster, and more targeted way to market. For further information on geofencing marketing, consider consulting organizations such as McEasy, which have implemented this approach in Indonesia.