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What Is Geofencing And Why Should You Be Using It?

What Is Geofencing And Why Should You Be Using It?

The Fruchtman Marketing team has fielded a lot of questions about geofencing and how our retailers should be using the service. Geofencing is a location-based mobile service that lets marketers send messages to smartphone users when they enter a predefined area around a specific location, such as a shopping center. These messages can be texts, emails, app notifications or banner advertising. In this article, I will concentrate on the banner advertising portion as this is the most used aspect of geofencing in the jewelry industry.

Think of it like a mobile billboard that serves ads promoting your nearby business. You are targeting consumers by real-time user location (GPS) and location history. Ad placements are on mobile sites and within apps.

As to how you could be using geofencing, the ideas are limitless. Retailers located within shopping centers have found this type of campaign to be extremely beneficial as you can target only the consumers in/nearby the shopping center, therefore maximizing your potential ROI. We have used geofencing to promote gift-giving holiday promotions, such as Valentine’s Day and Mother’s Day and to build brand awareness for bridal.

Keep in mind that you do not have to target just the area around your store. Retailers within a few miles of major shopping centers have done the same thing to show consumers they have other purchasing options. You can also target local happenings such as golf shows, concerts or community events. Use geofencing as a branding vehicle to show your support of the community and its philanthropic efforts.

When you are putting together a geo-fencing campaign, pay very close attention to the digital partner you are using and the details of their abilities. Some vendors cannot demographically target geofencing banners; their schedules will include all mobile devices that enter the predefined area. This is not necessarily a bad thing depending on your message and goals. Other vendors offer the capability to target mobile users based on their age, income, and interests. For example, you can target unmarried adults aged 25-44 who have, through their mobile usage history, shown an interest in engagement rings or proposal ideas. Talk about targeting exactly who you want to hit for your bridal messaging!

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