How can you use geofencing to send personalized offers to loyal customers?

1 Benefits of geofencing

Geofencing can help you create a more personalized and rewarding experience for your loyal customers. By sending them timely and tailored offers, you can increase their satisfaction, retention, and advocacy. Geofencing can also help you attract new customers who are nearby and interested in your products or services. Geofencing can also help you measure the effectiveness of your marketing campaigns by tracking the conversions, visits, and dwell time of your customers.

2 How to set up geofencing

To set up geofencing, you need a mobile app, a geofencing platform, and a customer database. Your mobile app should have the permission to access the location services of your customers' devices. Your geofencing platform should allow you to create and manage geofences, as well as to send push notifications or SMS messages to your customers. Your customer database should contain relevant information about your customers, such as their preferences, purchase history, and loyalty status.

3 How to create geofences

You can create geofences using various tools, such as Google Maps, Mapbox, or Radar. You can define the shape, size, and location of your geofences according to your marketing objectives and target audience. For example, you can create a geofence around your store to send a welcome message or a special offer to your customers when they enter. You can also create a geofence around a competitor's store to send a competitive offer or a reminder of your loyalty program to your customers when they exit.

4 How to segment your customers

Segmenting your customers is crucial for sending personalized offers that match their needs and interests. You can segment your customers based on various criteria, such as their location, behavior, demographic, or psychographic characteristics. For example, you can segment your customers based on their proximity to your store, their frequency of visits, their spending level, their age group, or their lifestyle. By segmenting your customers, you can tailor your offers to their preferences and motivations.

5 How to craft your offers

Crafting your offers is an art and a science that requires creativity and testing. You should consider the value proposition, the urgency, the call to action, and the tone of your offers. You should also consider the context, the timing, and the frequency of your offers. For example, you can craft your offers based on the season, the weather, the time of day, or the occasion. You can also craft your offers based on the customer's stage in the buying journey, such as awareness, consideration, or purchase. You should also test different variations of your offers to see what works best for your customers.

6 How to measure your results

Measuring your results is essential for optimizing your geofencing strategy and improving your return on investment. You should track and analyze various metrics, such as the open rate, the click-through rate, the redemption rate, the visit rate, the dwell time, the repeat purchase rate, and the customer lifetime value. You should also collect feedback from your customers to understand their satisfaction and loyalty. By measuring your results, you can identify what works and what doesn't, and make adjustments accordingly.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?