Fence Me In: How To Use Geofencing To Improve Your Social Strategy.

77% of people in the US own a smartphone and now over half of all people in the world use a smartphone. One of valuable features of a smartphone to marketers is the location or GPS capabilities. Yet according to a Search Engine Watch survey only 22% of marketers are using hyperlocal strategies (like geofencing) to its full potential.

A geo-fence is a virtual perimeter set up for a real-world geographic area. Geo-fences can be created as a radius around a store and event or set to predefined boundaries such as a neighborhood or city district. Geofencing must be used via a mobile app with location services turned on or triggered by an event like a geotagged post on social platforms such as Facebook, Instagram or Twitter. Geofences can also be used to trigger mobile adds on popular apps that sell them.

The Salesforce.com blog tells us that the benefits of geofencing include increasing local sales by pushing notifications to customers in the area, improving analytics by measuring location based sales, time and frequency metrics, and adding personalization to highlight offers and messages to local preferences.

Best practices for geofencing.

Best practices for geofencing include not making the fence too large. Keep it to within a 4 or 5 minute travel time. Have a call to action that is concise, locally relevant and requires prompt response. Also, be transparent about privacy by letting customers know what and how their location information is being used. And target messaging by context (relief from downtown crowds), day-part (lunch time specials), and retargeting (customers who haven’t visited in a while).

Yet sometimes the best strategies come from thinking outside of the box. Mobile Marketing expert Rip Gerber suggest fishing where the fish are, which may not be around your store. Thus, other strategies may include building geofences around competitor locations to attract new customers with a special offer or using a geofence around an airport to attract tourists. Also think about using geofences near arenas and events to attract attendees.

More advanced geofilter strategies include adding additional data to make geo messages more relevant. A retailer could use browsing data from an app or website. For example, when a woman who was looking at formal dresses on her phone enters a store she could receive formal dress messages instead of general sales or promotion messages. In addition, consider more helpful messages, such as a hotel, shuttle or rental car app reminding a person before leaving an airport to check in online, book their shuttle or rent a car via the app. Helpful location based reminders could increase brand loyalty.

When offers or promotions are used be sure they are significant and important. Getting interrupted by a mobile notification to save 25 cents may be more annoying than motivating. Also keep track of frequency so that you don’t bug people. Both of these actions could lead to the customer turning off location services on an app, which prevents further location based notifications in the future.

Geofencing in social media apps.

A version of geofencing is Snapchat’s sponsored geofilters. This adds a branded illustration to user’s selfies based on location, which are then shared with friends or followers. These are paid, but small businesses can purchase custom branded geofilters for as little as $5. One strategy could be a promotion where customers must post an image with the brand geofilter to win – ensuring they have visited the location.

Sponsored geofilter ads can now be bought through Snapchat’s advertising API, which enables marketers to pair a sponsored geofilter with a Snap Ad. This enables strategies such as buying a geofilter and then retargeting Snap Ads to people who used it. There is also integration with Snap Ad analytics dashboards to measure performance and geofilter brand templates can be created that then are easily customized for specific locations.

Other location based social strategies include leveraging geotagging in social media platforms to improve social strategies. For example create of geotag location names for local businesses, events or attractions. This can be done for Facebook and Instagram though Facebook Places. Instagram expert Jenn Hermman explains that customers who click on a geotag location see all other posts to the geotag, which can showcase brand products and services and help reach new customers through location search.

Geotagged posts also allow brands to source user generated content (UGC). Reposting these publicly shared brand experiences shows customers the brand is listening, appreciations their contributions, and presents an often more believable perspective of the brand. Just ensure you get permission first before sharing.

Geofencing brand examples.

What brands have used this strategy and practices well? American Eagle used location-relevant messages sent at the ideal time of the day to improve purchase behavior by 65%. Domino’s used geofencing around hotel locations to trigger local mobile ads offering ordering for the nearest locations. And a national fast food pizza chain used geofences around store locations to trigger a two-for-one take out deals. Notifications were delivered during rush hour, limited to users who had previously made online orders, and frequency was capped at a max of one message every three days. The result was an increase of 21% in the daily takeout orders.

How can you use geofencing and geotagging to improve your social media strategies?

For the latest changes in social media strategy consider Asking These Questions To Ensure You Have The Right Social Media Strategy and its a good idea to Perform A Social Media Audit at least once a year.

Can Retail Make Room For Showrooming?

Retail stores have had to deal with an increasing threat to their sales as smartphone ownership has crossed 50% and more consumers are using stores as a “showroom” before buying goods online. This especially became a problem for retailer Target when Amazon offered a 5% discount to anyone who used their Price Check app to scan a bar code of an item in a store and then bought it from the website. As a result, Target dropped Kindle from shelves saying, “What we aren’t willing to do is let online-only retailers use our brick-and-mortar stores as a showroom for their products and undercut our prices.” Not too long after Walmart followed suit by dropping Kindles from their stores.

How big is this problem? A recent survey says 50% of respondents with smartphones research prices while in store, 1 in 3 who research prices leave and buy from a competitor, and 96% plan to “showroom” in the future.

So what can retailers do? An article in Forbes suggests three strategies:
1. Begin a strategic conversation between brands and retailers. Through dual distribution or multichannel marketing they often end up competing against each other. Big retailers such as Best Buy need to develop exclusives to keep customers coming and buying. Tom Van Riper from Forbes said this is how Barnes & Noble kept Amazon from closing their business by developing the Nook.
2. Embrace customization as a key area of strategic growth. Large shoe brands such as Reebok and Nike are seeing revenue numbers in the $100 million range with their custom shoe programs.
3. Focus on the customer experience. Forrester research says 35% of shoppers want to purchase custom products to stand out from their peers. But also consider custom buying experiences for long term loyalty and engagement.

Mashable suggests innovation as another way to battle showrooming and talks about a store in Australia which started charging consumers $5 just to walk into the store. Before you start a retail cover charge also consider new digital marketing services that engage shoppers to entice them to stores. For example, Target has announced plans to price-match online competitors, such as Amazon. And Brian Gillespie, principal at a service design firm, suggests encouraging “webrooming” (the opposite of showrooming) where shoppers search for products they want online, and then head into the store to make a purchase.

Gillespie makes a good point. It comes down to retailers creating an in-store experience exceptional enough to keep consumers purchasing in-store. The kind of customer service Nordstrom offers and enhanced with digital environments. But will that kind of service draw a crowd for toilet paper at Target the same way it does for Eau de toilette at Nordstrom?