Interested in sending your customers relevant messages that drive action and boost sales? It's time to explore SMS geofencing. This targeting technology enables businesses to send SMS messages to a mobile device based on customers' precise location. It's cost-effective and tends to have a high conversion rate. It's no wonder businesses across a range of industries are adopting this marketing strategy.
SMS geofencing may be just what your marketing strategy needs to take your business to the next level. Read on to learn all about this technology, how it works, and how to incorporate it into your business.
What is SMS geofencing?
SMS geofencing is an SMS marketing targeting strategy that allows you to send relevant, timely messages based on a customer's location. These SMS messages are triggered when a mobile device enters or exits a specific geographic area as defined by your targeting.
This technology relies on a combination of location data from GPS, Wi-Fi, cell towers, and mobile app data. Based on the boundaries or geographic area you've selected, a user will receive your SMS message as they pass in or out of the area, after a certain amount of time spent in the area, and more.
How SMS geofencing works
Interested in learning more about SMS geofencing? Let's explore how this location-based marketing technique works.
Define the geofence
You'll begin by designating your SMS geofence through a marketing or geofencing platform. This boundary can be as big or small as you'd like, but it works best when done using a very precise physical location, like 500 ft surrounding a store or event.
Identify or opt-in users
In order to use SMS geofencing, you'll also need a list of users who have opted in to receive text messages from your business. They'll also need to allow location sharing via mobile apps or services for this technology to function correctly.
Your email list can be a great driver of opt-ins for SMS messages. Run a campaign that encourages customers to sign up for SMS messages to receive exclusive discounts and promotional information.
Remember, you can only send text messages to users who have explicitly opted in to receive targeted messages from you. Consent is key for compliance with privacy laws, and it also gives a good impression of your business. Following consent laws to a T demonstrates to customers that you have a trustworthy business.
Trigger the message
Now that you've built an SMS list and defined your SMS geofence, you can launch your SMS geofencing campaign. This allows you to deliver targeted messages based on the user's location. When a user enters, exits, or lingers with a defined zone, the system will trigger your SMS message. Your campaign can get quite granular; messages can be sent immediately or delayed based on your campaign setup.
Deliver the SMS content
The content of your message is as important as the targeting. SMS geofencing works best when sending concise messages that are highly relevant to the user's physical location or current actions, like flash sales, nearby event reminders, or curbside pickup availability.
SMS geofencing should always be used responsibly. Sending too many messages when a customer is nearby or being too precise about their location may give an impression that they're being tracked or followed.
Benefits of SMS geofencing
SMS geofencing can drive all kinds of benefits for businesses. Let's dive into the primary benefits of location-based geofencing technology.
Hyper-targeted messaging
SMS geofencing enables you to send relevant, location-based messages at exactly the right time, like when a customer is near your store or restaurant. This precision ensures relevant content and lowers your chances of being perceived as spammy or intrusive.
Increased foot traffic and sales
Sending targeted messages can drive last-minute purchases, boost pickup on flash sales, or promote time sensitive offers. With the help of SMS geofencing, you may be able to make sales that may not otherwise have happened.
At events, it can drive attendance at particular locations. It can be used to encourage attendees to view a headliner or fill seats at a particular lecture.
Real-time customer engagement
SMS geofencing enables your customer to be "at the right place at the right time." It encourages instant action while customers are nearby, making it a great solution for event reminders, promotions, or location-specific updates.
Cost-effective and measurable
SMS geofencing works extremely well. It tends to be lower cost than traditional advertising and drive higher engagement. Using your geofencing technology platform, you can track conversions like store visits and prove campaign ROI.
Common use cases for SMS geofencing
How do you incorporate SMS geofencing into your marketing strategy? Use these common use cases for SMS geofencing to inspire you.
Retail
SMS geofencing has plenty of applications in the retail world. You can send messages with in-store promotions as customers approach or use flash sales to boost walk-in traffic during slow hours.
Restaurants & cafés
Restaurants and cafes can also benefit from SMS geofencing. Owners can send lunch specials to nearby office workers or remind customers of happy hour promotions as they pass by.
Events & entertainment
Timely messages are always relevant at events, whether concerts, festivals, or conventions. Using SMS geofencing, you can send welcome messages or schedule reminders for conference attendees. You can also promote nearby concessions, promotions for merch stands, or afterparty information based on a customer's location.
Healthcare
SMS geofencing isn't only useful for driving sales; it can be a great way to increase engagement with your services, too. Those in the healthcare industry may use geofencing technology to notify patients of appointment availability as they pass by the clinic, or promote flu shots or wellness services to patients sitting in the waiting room.
Real estate & home services
Those in real estate and home services can find plenty of opportunities with SMS geofencing. Real estate agents can send location-based messages alerting passersby to open houses or nearby listings. Home services providers can also send offers for services to targeted neighborhoods and communities.
How to get started with SMS geofencing
Ready to give SMS geofencing a try? Discover how to get started with this location-based marketing technique.
1. Choose a geofencing or SMS marketing platform
To get started with SMS geofencing, find a geofencing software that supports location-based SMS marketing and automation. Explore options that integrate with your current marketing tech stack, like Airship, EZ Texting, GeoIQ, and Twilio.
2. Get proper consent
Next, it's time to get consent. Follow all necessary regulations, like TCPA, GDPR, and CCPA. Make sure users opt in to both SMS messaging and location tracking before you send them any SMS messages.
3. Set geofence parameters
Once you've established your list, it's time to define your target audience. Define your SMS geofence radius, the duration of your geofence, and the exact trigger for your message (entering, exiting, at a specific time, etc).
Carefully tailor your targeting to your campaign goals. To drive store visits, send messages when customers enter your barrier. For event alerts, you may want to send a message at an exact time, like 15 minutes before a lecture begins.
4. Write compelling, location-specific messages
Then, draft your message. Keep it concise (most SMS messages are limited to 160 characters) and relevant. You'll also want to finish your message with a clear CTA that tells customers exactly what you'd like them to do. For instance, you can finish your message by prompting customers to "Show this text for 15% off."
5. Monitor and optimize
You've sent your first geofencing campaign—now what? Once your first message is sent, it's time to monitor and optimize. Identify and track your conversion point, like a purchase using the discount code or an increase in foot traffic. It's also a good idea to keep an eye on opt-outs to identify messages that may have been off-putting to customers.
Analyze this data and look for trends. Test different locations, messages, and message timing. With continued testing and analysis, you can refine your SMS geofencing strategy and create more effective campaigns.
Boost engagement with smarter, location-based messaging
Ready to give location-based messaging a go? SMS geofencing can be a great way to boost engagement, purchases, redemptions, and more. By pairing a geofencing software with SMS marketing technology from Mailchimp, you'll be able to create refined campaigns that drive results. Get started today.
Key Takeaways
- SMS geofencing is a marketing technology that enables businesses to send SMS messages to users as they enter, exit, or linger within a defined geographic boundary.
- Using this technology, you can encourage real-time customer engagement with cost-effective results.
- SMS geofencing is relevant across a number of different industries, including retail, restaurants, events, healthcare, and more.