Why Use Geofencing

Why Use Geofencing? 7 Reasons to Convince Your Boss

Geofencing is the latest trend in the mobile marketing world. It enables mobile marketers to send location based notifications from their app. In a nutshell, geofencing is a virtual perimeter around a location within which you want your customers to receive your notifications. You define your notification and that’s it, you’re done! You can then target people based on their location. Still not sure about why use geofencing? Just take a look at these 7 reasons to convince your boss.

1. Relevance

Location-based marketing is highly relevant because it gives you the opportunity to reach out to people with the right content at the right time. Geofencing allows you to target them individually, and personalize the notifications you send them, while avoiding spam instances.

Relevance is, amongst other things, achieved through flexibility. You can define a geofence which includes the whole city or just the pavement in front of your store and define specific times during which your notifications should be sent (for instance opening hours). In addition, you can send users to anything from a coupon to a custom landing page.

Geofencing works for a variety of industries and it’s up to you how you make it serve your needs. But most importantly, if done right, it is perceived by consumers as an additional and useful service rather than just a marketing trick.


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Cheat Sheet: The Do’s & Don’ts of Proximity Marketing

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2. Proven Driven App Usage

CTR Android iOS

Did you know that 26% of people open an app once and never use it again (Google, 2015)? Also, 78% of those who enabled push notifications on their smartphones claimed that they would disable them, or even delete the application if they were unhappy with what they received. But no more.

Numbers prove that users are more likely to use an app if they receive location based notifications. According to our data, the click-through rate of geofencing notifications on Android is 13.6%, which by far exceeds that of generic push notifications, which is only 2% (check the results of our research here). In simple words, sending relevant notifications to people actually urges them to click on them and, consequently using the app more often than usual.

 

3. Insights to Calculate your Mobile ROI

Some may question “Okay, lets say I do this. How do I know if it works?” Well, number of statistics such as the number of notifications sent and viewed and the conversion per location-based notification allow you to track just how effective your campaigns are. You can also gain deeper insights: which stores convert better, at what time of the day they do so, and the conversion per platform (e.g iOS, Android). Doing so, you gather insights that allow you to calculate your ROI.

Extensive analytics

4. Users Demand It; Wave Spam Goodbye

Doing what’s best for your company does not mean that your customers’ interest is not your first priority. Recent studies concluded that 70% of consumers find location-based notifications to be valuable and 53% of them are likely to engage with location-based advertising. According to a customer experience study, 47% of consumers surveyed stated that they would be likely to shop from a retailer that offered promotions when they are nearby. In addition to being highly relevant, geofencing notifications are also convenient! Nothing is more convenient than receiving interesting information (e.g for deals) without doing any research and being able to take advantage of it immediately.

5. Cost-Efficient Marketing Tool

Your business can’t afford a big marketing campaign? Geofencing does not require a huge budget to deliver effective marketing because you carefully choose who your message is sent to instead of mass spraying. Thus, you can invest a small budget and compete against the big retailers! There is a wide range of options, just pick one according to your needs and financial capacity.

6. Time Efficient Implementation

Creating and tracking your geofencing campaigns is quick and accessible to anyone, does not require any technical skills. At Plot Projects, we try to make it as painless as possible and provide you with an easy to use dashboard to manage your geofences and notifications and have created step by step guides to help you learn the ropes.

7. It’s a Young and Fast-Growing Industry

The real-time mobile location-based marketing and advertising market is expected to reach $30 billion by 2020 (BIA/Kelsey, 2016). Taking this numbers into account, a great amount of money will be invested and a growing number of businesses will try to get their share of this promising industry. Therefore it might be a good idea to integrate this technology before everyone else does. Be innovative and stay ahead of the competition!

For more info about and reasons on why use geofencing, here’s another article for you.


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Still wondering why use geofencing in your app?

Download the Ultimate Guide to Geofencing for Mobile Marketing to find out more about geofencing and beacons and why to use them in your app.