Why Geo Fencing is the Key to Profit for Small Businesses?

Why Geo Fencing is the Key to Profit for Small Businesses?

Start-ups and small businesses today cannot afford to lose out on customers. Every customer misplaced is a direct loss incurred by a small company. However, what most companies today do is they invest in customer acquisition and pay little heed to customer retention. Now, while customer procurement is a novel investment, it can sometimes go awry and leave businesses losing out on present customers. So, today expert businesses state that, instead of spending time on customer acquisition, small business should first focus on customer retention. The reason being it’s easier to convince existing customers of your company and product’s worth than it’s to target new ones. Hence, one of the latest ways to retention of existing customer’s is using geofencing. Now, if you’ve no idea about geofencing, no need to fret! This blog will give you clarity on geofencing and why it’s the one-stop solution to more conversion. However, before moving forward, note that in order to establish geofencing you require a mobile application for your business.  While developing a mobile app may be costly, but it’ll undoubtedly assure you profitable ROI if combined with geofencing tactics. Now, coming to the main part, What is Geofencing and how does it work? The art of Geofencing involves the use of RFID or GPS technology for creating a geographic virtual boundary. This software activates a response the moment a mobile device enters within its boundary. Today, numerous small businesses are using geofencing for targeting people who have downloaded a respective company’s app. For example, let’s say your small business activated geofencing around your local shop. Now, a person who has downloaded your company’s app enters the location’s boundary that is geofenced. This person will get a push notification or alert making him aware of your company even he/she initially wasn’t. For example, let’s assume you deal with ice-creams, so this person with your app walks by and gets notified about discount offers at your store. He walks in to buy ice-cream. In this way, even if the customer wasn’t originally planning to get ice-cream, the push notification enticed him to. In this way, Geofencing can work to retain the old customer and even snare new ones for your business. In fact, Find Out the ways Geofencing helps Small Businesses
  1. Saving Money and Time
Let’s assume you’re the owner of a florist shop, and you often have vans delivering flowers to clients. Now, you have got a few workers allocated to delivering flowers to specified locations. So, these drivers are to follow certain routes and with geofencing, you can be alerted if one of your drivers goes off route. This will help you keep track of your drivers and implement payroll policies accordingly. For any small business, the process of generating payrolls is taxing and over time leads to more payment. Hence, if you can maintain strict vigilance on your delivery vans, you can question the drivers in case they run off route. Depending on the answers, you can determine whether overtime payment is needed or not.
  1. Woo Customers to Spend Money
Well, this is a tricky endeavor, but if done correctly can entice your customers to spend more money. Remember, that 25% customer’s hate inconvenient push notifications. However, there’s an easy remedy. Let’s take an example, say you run an Italian restaurant and recently opted for geofencing. Now, a customer who has your app walks by and you want to target him/her, so first create intriguing content, or offer coupons or special offers. This is not only a stable source of marketing but customers today report they prefer buying products or services that offer coupons. So, say your push notification claims 30% off on weekday meals; you’ll easily drag in potential customers. What’s more? These customers can include word-of-mouth marketing that will help garner potential customers too. Not only this, geofencing is a stable way of creating brand awareness as potential customers that download your app is made personally aware of your store. Moreover, with the internet offering options of customization of push notifications, you can frame different content and offers for different users. In this way, with one simple cost-effective trick of geofencing, you’re accomplishing successful customer retention and profiting your small business. To know more, contact Matrix Media Solutions now!

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