The use of geofencing and beacons is increasingly popular in the field of mobile marketing. This technology depends on smartphones, which have long been part of our lives and our daily lives.
Let’s look at the past. All those who are now between 20 and 30 years old grew up when the mobile phone industry had just begun. Fifteen years ago, nobody knew to what extent the smartphone would change our lives in a relatively short period of time.
However, this goes beyond smartphones. Experts predict that by 2020 there will be more than 30 billion devices connected to each other. This network of devices is called the Internet of Things (IoT), which will probably affect our lives even more. In this article, we analyze the IoT from a different point of view. Since we will focus on the technology of geofencing and beacons.
What is geofencing?
It is, literally, a virtual fence that allows you to register objects (such as smartphones and smart watches) or people, within a previously selected area. Therefore, it is possible to recognize when a device enters and leaves this area. As we have said before, geofencing depends, to a great extent, on smartphones. Since, this technology is enabled by the use of GPS and the abilities of a radar.
As soon as a user enters a certain area, certain actions can be triggered, such as push notifications, emails or SMS. This allows mobile phones to be directed and contacted for commercial purposes.
What are beacons?
Beacons are adapted for shorter distances. These small transmitters can exchange data with other devices that have Bluetooth connected within a range of approximately 10 and 50 meters. That is, two phones can communicate with each other automatically, even if they operate independently of time and space.
Therefore, there are no limits for beacon technology. This means that, theoretically, it is possible to use several transmitters to cover a whole city. Although it will be necessary to take into account the number of beacons needed for a specific area. Because if the range is too large, too many people could be receiving irrelevant push messages, which would result in a negative effect on the client’s behavior.
In fact, beacons could be described as the development of current Bluetooth technology, which saves energy during use and is particularly profitable. Although, on the other hand, the battery of a beacon can guarantee up to three years of full functionality. In addition, the use of Bluetooth guarantees an even greater scope.
The big difference between beacons and geofencing is, therefore, that the beacons are independent of GPS and WIFI, since they work through Bluetooth.
Walgreens uses Geofencing as a means of customer retention
Attracting customers is one thing, but retaining them is another story completely. Studies suggest that 83% of millennials connect with brands that appeal to their digital needs, and that 83%, 62% become loyal brand customers.
Walgreens is using mobile marketing as a way to build trust and, ultimately, promote brand loyalty in its customers through geofencing. Each time a customer enters a fenced location, a notification allows the user to open the application without having to search for it. After that, customers can scroll through the details of their account or view promotional offers.
Clearly the data shows that loyalty programs are a necessity for today’s consumers. Your company may reflect Walgreen’s address when you add a geofence to your mobile application.
This specific approach to mobile marketing gives the user an experience of exactly “what they want when they want it” which is a difficult feat to achieve in marketing. Service without interruption promotes customer loyalty.
Uber uses Geofencing for Proactivity
Following the leadership of technology giants around the world, Uber has also researched the use of geofences. Uber uses geofences at the Los Angeles International Airport so that when users arrive at the airport they are notified about the number of cars available to meet their needs. This allows geofences to serve as a means of providing proactive services to the client.
If you are in the travel niche, you can learn a lot from Uber’s proactive approach to serving potential consumers. However, even if you are not in travel companies, thinking of ways to tell your customers that you have what you need when you need it most is a great way to use the geofenification capabilities of your company’s mobile application. In other words, you need a geofencing platform that can meet all of your possible needs.