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How To Attract More Customers Through Geofencing

3 min read
May 12, 2016

If you take a look around the next time you are walking down the street, sitting in a coffee shop, or doing any other day to day activity, I can guarantee you will notice that the consumers of today are rarely seen without their smartphone in hand, or at least close to hand.

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Yes ok, it’s quite sad… we have all turned into anti-social creatures that spend more time staring at a screen than in face to face conversation. However, with the incredible amount of accurate location based data being transmitted from these devices, this presents many different business owners with a huge opportunity - Geofencing!

So What Exactly is Geofencing?

A geofence is a virtual barrier that can be set up by a business around its store or another particular location. The business can then leverage this location-based technology to help improve the overall customer experience, match the right user with the right content, deliver personalised notifications straight to their device, and gain insight into customers’ movements and behaviour.

Geofencing allows businesses to interact with customers in ways that were simply not possible before. Smartphones today are more secure, more connected, more persuasive and more location-aware than ever before.

How Geofencing Can Attract More Customers

A survey carried out by Accenture in November 2015 concluded that almost 50% of smartphone users who shopped both online and in store felt excited about the prospect of receiving real time promotions straight to their device. This showcases that customers want to be reached out to and do respond well to the messages tailored to them. They are excited to receive specific messages and to be rewarded when they are in the area of their favourite brands.

However, despite this only 7% of retailers worldwide were found to offer this service and so there is huge potential here to gain a competitive advantage over through the use of geofencing. This would be particularly useful for small-business owners who don’t have the marketing budget to compete against the larger retailers.

How Geofencing Can Be Used For Different Businesses

  • Retailers

Push out a notification providing customers with a special offer or discount that needs to be redeemed within the next 2 hours in order to be valid. This entices the nearby customers into the store. Not only will this encourage a customer to visit the store, but also encourage them to visit with the intention of making a purchase so they don’t miss out on the fantastic offer.

  • Restaurants/Bars

A simple notification informing nearby consumers of daily specials, meal deals or drinks promotions could really make the difference in a customer choosing the specific restaurant or bar over a competitor.  I mean… who can turn down a good drinks promotion?

  • Cinemas

Make nearby consumers aware of your daily listings and showing times or provide them with a coupon to be redeemed before the end of the day. This could just sway them into making plans to head to your venue to watch a newly released movie rather than a dull Friday night in watching the same old rubbish.

  • Beauty Salons

Had a last minute cancellation and don’t want it to affect business profitability? Let customers in your area know of the treatment you have available and the time frame they have to redeem it by. You never know who may need an emergency nail appointment nearby! Also, in a busy salon it can be inconvenient to have to stop mid-treatment to see to a client that has just arrived. A geofence could be used to prompt your clients to check in once they reach the salon and inform them that someone would be with them as soon as possible.

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  • Hotels

Speed up the check in process by prompting your guests to check in digitally once they enter the lobby. This is also a good opportunity to offer them an upgrade and highlight the special features and amenities they could get from doing so. Further continue to customise your guests whole stay at the hotel using geofencing to offer room service when they are in the room, happy hour deals down at the bar and spa discounts.

In summary...

With geofencing you are able to communicate with your potential customers in a completely unique and targeted way. The main goal is to build connections with your customers, thus adding value to their experience of your brand and attracting them into your premises on a more regular basis. The more customers that are in your store or premises, the higher the chance you have of increasing your profitability.  

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