Geofence Marketing: Engage Customers Where It Matters! 📱💬

#HTE 305 -Strategies, examples, and much more!

July 04, 2024 • Estimated Reading Time: 11 minutes

Hello there, HTE rock stars! 😎

🎉 Welcome to our latest newsletter, where the future of marketing unfolds! 

Understanding how customers think can transform your marketing game in today's digital age. Picture predicting their needs, engaging them at the right moment, and crafting messages that hit home. Welcome to the world where marketing meets behavioral science—a place where insights become strategies and strategies breed success.

This edition explores six captivating case studies that reveal how brands use behavioral science to revolutionize their marketing. Plus, dive into Geofence Marketing—an innovative approach that targets customers exactly where they are. From personalized experiences to timely offers, discover how these tactics can elevate your marketing efforts and keep your audience engaged from start to finish.

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Mastering Marketing with Behavioral Science: 6 Fascinating Case Studies 🚀

Geofence Marketing: Engage Customers Where It Matters!🌐📱

Different Ways to Use Geofencing

Benefits of Geofence Marketing 📍

Top Reads - Real-time news right for you.

HTE Job Board- Get Your Dream Job With A Click!

Mastering Marketing with Behavioral Science: 6 Fascinating Case Studies 🚀

What is Geofence Marketing? 🌐📱

So, what exactly is Geofence Marketing? Imagine drawing a virtual fence around a specific geographic area. Whenever a potential customer enters this "fence," they receive targeted messages, offers, or ads on their mobile devices. It's like sending a friendly wave to someone who walks past your store, inviting them to come inside and check out what's new. 😊

For instance, if you own a coffee shop, wouldn't it be fantastic if your loyal customers received a special discount notification just as they were walking nearby? Or if you run a retail store, you could alert potential shoppers about an ongoing sale as they pass by. This not only drives foot traffic but also enhances the customer experience by providing timely and useful information. By leveraging the power of location-based marketing, you can create meaningful interactions, boost engagement, and ultimately, drive sales. 🚶‍♂️💬

Geofence Marketing offers businesses a way to connect with customers in real time, providing them with relevant and personalized experiences. This method can significantly increase the effectiveness of marketing campaigns by reaching customers at the right place and the right time. 🌟

How It Works:

Geofence Marketing uses GPS (Global Positioning System), RFID (Radio Frequency Identification), Wi-Fi, or cellular data to pinpoint a person's location with remarkable accuracy. Here's a simple breakdown of the process:

Setting Up the Geofence:

A business defines a virtual boundary around a particular area, such as a store, event venue, or competitor's location. This boundary can be as small as a few meters or as large as an entire city.

Tracking Movement:

Using GPS or RFID technology, the system monitors when a mobile device enters or exits the geofenced area.

Sending Notifications:

When a potential customer crosses the geofence, they receive a targeted message, such as a special offer, discount, or informative content, directly to their mobile device. 📲

The precision of geofence marketing allows businesses to tailor their messages based on the specific locations and behaviors of their customers. This personalization can lead to higher engagement rates and a more effective marketing strategy. 📈

Different Ways to Use Geofencing

Retail Stores:

Imagine a clothing store setting up a geofence around a shopping mall. When shoppers enter the mall, they receive a notification about a flash sale or a new collection. 🛍️ This can drive immediate traffic to the store, increasing the chances of making a sale.

Events and Concerts:

Event organizers can create geofences around concert venues to send attendees important updates, promotional content, or exclusive offers. 🎤🎟️ This enhances the event experience and keeps attendees informed and engaged.

Restaurants and Cafes:

A coffee shop could geofence its competitors' locations, sending enticing offers to coffee lovers nearby to lure them in. ☕🍰 For example, a special discount on a popular menu item could be just the incentive someone needs to choose your cafe over another.

Geofencing can also be used in various other industries such as real estate, fitness centers, and automotive services, providing versatile solutions to reach and engage potential customers effectively. 🏡🏋️‍♀️🚗

Mastering Marketing with Behavioral Science: 6 Fascinating Case Studies 🚀

Today's guest is hands down one of the smartest marketers around. Behavioral science and psychology are among their favorite subjects when it comes to studying why marketing works. Getting inside human brains, understanding tendencies, and immediately trying to implement new insights is fascinating, and today's guest is an expert in it all.

1. Increasing Brand Retention 📈

“There’s an eternal battle between concreteness and abstraction in marketing. Which should you use?

Psychologist Ian Begg ran a study in 1972, reading a list of 22 phrases to people. Some phrases were concrete, like the word 'white,' while others were abstract and couldn't be visualized. Begg found that people remembered 36% of the concrete phrases but only 9% of the abstract ones.

This highlights that our most powerful sense is vision. If you use language people can visualize, it will be more memorable. Abstract terms, like quality and trustworthiness, are hard to picture and easily forgettable.

A classic example is Apple’s iPod launch. Other brands talked about memory in megabytes, which is hard to visualize. Apple referred to ‘1,000 songs in your pocket,’ making it much more tangible and memorable. This is a broader strategy that more marketers can harness.

Another example involves using imagery in brand messaging. When a detergent brand used images of clean, fresh laundry instead of abstract claims about cleaning power, their ad recall increased significantly. This shows the power of visualization in making messages stick. 📸

2. Rhyming in Ads 📚

A study examined the impact of rhyming on credibility. Participants were given fake proverbs, like “woes unite enemies” (non-rhyming) and “woes unite foes” (rhyming). The rhyming proverbs were judged 30% more believable and twice as memorable by the end of the day.

Rhyming aids in mental processing and boosts credibility and memorability. However, the industry often ignores this strategy, possibly due to the perceived need for sophistication in advertising.

In addition, rhyming can also enhance brand slogans. For instance, the slogan "A Mars a day helps you work, rest, and play" uses rhyme to make the message more catchy and memorable, contributing to the long-term success of the Mars brand. 📝

3. Marketers, Don’t Make This Mistake 📉

Results-driven marketing must balance short-term and long-term effectiveness. The danger is overemphasizing short-term metrics, leading to a focus on price and promotions. While effective short-term, this approach can devalue your product over time.

A study by the IPA (Institute of Practitioners in Advertising) found that campaigns focused on brand-building delivered twice the profitability compared to those focused solely on short-term sales activation. This underscores the importance of maintaining a long-term perspective in marketing strategy. 🕰️

4. The Power Imbalance 👥

A University of Texas study compared polite versus authoritarian signage asking people not to graffiti. The less polite sign resulted in twice as much graffiti. People value a sense of control and will push back against overly authoritarian messages.

Marketers can avoid this by reminding people of their control, leading to better compliance. This principle, known as reactance, shows that emphasizing freedom can lead to positive results.

In practice, this can be seen in the "opt-out" vs. "opt-in" strategies for email subscriptions. When users feel they have the choice to opt-out at any time, they are more likely to engage positively with the brand. This respects their autonomy and reduces resistance. 📧

5. The Power of Precision 🔍

A study with a fake deodorant ad showed that precise claims (e.g., reducing perspiration by 53% vs. 50%) improved credibility and perceived accuracy. People tend to believe precise numbers indicate knowledge and confidence.

This suggests using precise language can enhance the effectiveness of marketing messages.

Further research indicates that precise pricing (e.g., $19.97 vs. $20.00) can also influence consumer perceptions of value and fairness. This technique leverages the same psychological principle to make offers seem more thought-out and credible. 💡

6. Harnessing Behavioral Science 🛒

Richard Thaler, a Nobel Prize winner, emphasized making things easy as a key lesson in behavioral science. Instead of focusing on motivating people to change, it's often more effective to remove small barriers that hinder desired behavior.

Amazon’s one-click purchasing is a prime example. Marketers should examine customer journeys and invest time, energy, and budget into removing friction.

This principle can also be applied to online forms. Simplifying forms by reducing the number of fields and using autofill options can significantly increase conversion rates. The easier it is for customers to complete a task, the more likely they are to follow through. 🖱️

Benefits of Geofence Marketing 📍

Precision Targeting 🎯

Geofence Marketing enables businesses to deliver highly targeted messages to individuals in specific geographic areas. This precision ensures marketing efforts are directed at the right audience at the right time, boosting engagement and conversion rates.

Use beacons within the geofenced area to send hyper-targeted messages based on the customer's exact location inside the store.

  • For example: "Enjoy 15% off all shoes today at [Store Name]."

  • This enhances the relevance and engagement of your marketing messages.

Enhanced Engagement 📈

By sending notifications based on a person's current location, businesses can provide timely and contextually relevant information. This makes communication feel personal and immediate, rather than random and intrusive.

Send limited-time promotions to customers within the geofenced area to create a sense of urgency.

  • For example: "Flash Sale! Get 20% off all items for the next 2 hours at [Store Name]."

  • This drives foot traffic and boosts spontaneous purchases.

Competitive Advantage 🚀

Geofence Marketing also provides valuable insights into consumer behavior and preferences. By analyzing data from geofencing campaigns, businesses can better understand their audience's habits, preferences, and movement patterns.

Utilize competitor conquesting by setting up geofences around competitors’ locations and sending targeted offers to lure their customers to your store.

  • For example: "Just around the corner at [Your Store]! Show this message for 15% off your purchase."

  • This captures the attention of your competitors' customers, potentially increasing your market share.

Top Reads📚

Edrington full-year sales up 11%  ~  1 July  2024, The Spirit Business

Tracy Anderson Launches Fragrance  ~  27 June 2024, Business of Fashion

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