Black Friday marks the official, post-Thanksgiving start of the holiday shopping season for U.S. consumers, as retailers open their stores early and advertise massive discounts. Showing no sign of slowing down, 86% of shoppers are planning to spend money during Black Friday this year.
So, how can retailers take their marketing initiatives to the next level in anticipation of Black Friday? Many will implement geofencing, giving them the ability to advertise specifically to potential customers within a certain geographic radius. Geofencing utilizes global position (GPS) or radio frequency identification (RFID) to define a geographic boundary. Once the boundary is established, the administrator can set up alerts when a mobile device enters the specified area.
Here are four geofencing marketing techniques you can implement for Black Friday:
Enhancing Sales Through Deals and Alerts
The geofencing industry is expected to grow to over 27% by 2022, giving ample opportunity for retailers to secure more data from location analytics.
A retail store can create a simple geofence to surround its physical location. When consumers pass through the “fence”, they will receive a location-triggered deal — making them more likely to stop in and shop. Additionally, stores can send promotions via push notifications prior to the start of Black Friday, so consumers can strategically plan their shopping out before the day arrives. Retailers can showcase limited time-offers by utilizing this method, ultimately leading to increased sales.
One of the most recognizable uses of geofencing comes in the form of popular social media networks. Location based filters within applications like Snapchat are a fun and creative way for stores and brands to interact with nearby consumers.
Recently, stores have implemented pop-up shops at different locations across the country for a limited time. These retailers geofence the different store locations, aggregating and curating all of the visitor social media content generated in those locations during the store openings. This provides brands with a better way to join in on real-time social chatter during grand openings and special events.
Latest Insights on Location Intelligence
Sign up to get the latest from Gravy Analytics straight to your inbox.
Securing a Competitive Advantage
Geofencing can also be used to secure a competitive advantage during the holiday season. A department store, for example, can set up a geofence aimed at targeting consumers leaving a rival department store after trying on a few pairs of jeans. Offering these consumers a buy-one-get-one deal on a similar style of jeans is likely going to entice them to browse for alternatives and comparison shop.
Conversely, if the location data shows consumers spending money at a competitor’s store, custom audience segments can be configured based on targeting parameters such as competitor locations, how often the users are visiting and when, as well as the nearby area. Once the geofence is secured, retailers can start luring those consumers away.
Refining Future Targeting Efforts
Even if a geofenced offer does not cause an immediate visit or sale, it allows a business to know exactly what location a consumer passed through via foot traffic data. Knowing where the consumer was when they received the message enables retailers to refine their targeting efforts in the future, based on what communication initiatives were most successful.
Consumer data can be collected and stored to personalize offers throughout the holiday season. Retailers receive demographic information, including what kind of offers interest consumers. Prior to the holiday shopping boom, take a look at your consumers’ purchase history to determine if they value a certain product over another, and alter your strategy accordingly.
Get Started with Gravy Data-as-a-Service (DaaS)
It’s time to implement a data-driven approach to your business plan. Download the overview to learn how Gravy DaaS can help you get started.