Here are just a few thoughts on the benefits of GeoFencing and how it can work best for you:
1. GeoFencing can help you engage local shoppers. It is a location-based service that sends messages to smartphone users who enter a defined geographic area. Some companies send promotions to customers' smartphones when they enter a store, mall or neighborhood.
2. Deals can be hyper-local. Knowing that customers are nearby lets businesses tailor offers based on local events or holidays.
3. It leverages your location. By sending a targeted offer to a customer in a parking lot, you may be able to steer them away from competitors. Companies can also work with businesses that offer complementary products.
4. Collect customer data that you can really use and offer rewards accordingly. When you know where customers are and how they behave, you can not only customize offers but also give them rewards and a personalized experience. Neiman Marcus is piloting GeoFencing in its stores so salespeople can see when VIP customers are in store, look at their purchase history and provide more personalized service.
Thanks to http://www.cio.com/
2. Big fences do not work. By definition, a GeoFence can be any size or shape. But want to attract them when they are near by your retail store. Construct GeoFences that are small and thus more relevant. Use this rule of thumb: the distance should equate to approximately four minutes travel time to your doorstep.
If your store is in a mall, that is a four-minute walk. If along the road, that is a few blocks. Anything larger and you are reducing relevancy in your “local messaging.”
3. Bland messages do not work. If your message is an ad versus an action, you will not drive the customer behavior you desire. You are not alone in your GeoFence aspirations. Today more than half of U.S. mobile ad spending is local. Your message must be brief, be locally-relevant and prompt action. And money always drives action: do not be cheap.
4. Make it important. The Starbucks latte coupon message magically appearing on your iPhone has been cited as the Holy Grail of location-based services for a decade. Technically, the capability is beginning to emerge with some – albeit spotty – location sources, but persistent handset location on the handset is too costly in terms of its toll on battery life. Besides, which customers want to receive dozens of coupon texts as they stroll through the mall? If you build a GeoFence, have it trigger an important action.
Saving a quarter on a cup of coffee is not important, but redirecting a high roller away from a competitor’s casino is important. Choose your GeoFence purpose wisely.
5. Watch the clock. A GeoFence is not just a place on a map, it is also a place in time. When you take action on a trigger and when you notify a customer to do something is just as important as where.
6. Measure everything. Even if you are unsure of how certain metrics directly impact your campaign ROI, record them anyway. A GeoFence combines the physical world with the data world, which adds up to a brave new world for marketing analytics. Insight from the data comes from surprising places. Do you know what time of day marks the highest propensity for spending among your customer segments? You should.
Thanks to: Rip Gerber is CEO of Locaid Technologies, San Francisco.