An SMS geofencing campaign is a little-known method used in local marketing to attract customers to your brick-and-mortar store with close proximity tracking. For many years the idea of leveraging mobile and customer proximity to their favorite stores was tested, and it was discovered that some 47% of mobile users are open to this kind of marketing.

If you own a shop or store in the real world that could benefit from increasing your local foot traffic, then SMS geofencing may be the ideal method to boost your sales and bottom line.

How does SMS geofencing work?

It all begins with an in-store invitation for customers to join your exclusive SMS geofencing list. Once they have signed up, it gives your store the permission to send them text alerts or SMS marketing messages when they are in close proximity to your store. Click here for our Mobile retail revolution guide now. After establishing your store radius, when that customer ventures close to your store the next time they are out shopping, your system will be flagged and an automatic text alert will be sent to your customer's mobile phone. This SMS message will contain a deal, coupon or discount that will entice the nearby visitor back into your shop. Example: Greg signed up to X-treme Store's SMS geofencing list the last time he was in-store. While visiting the same center 3 days later, he receives a text alert. If he returns to X-treme Store in the next 2 hours, he will receive 35% off his next purchase! Because of the virtual perimeter that is established in SMS geofencing campaigns, every time a list member ventures close to the store, that proximity can be leveraged and the customer converted with an attractive text alert deal or message. Not only will that customer return to the store, they often return with the intent to purchase.

  • Maximize the return on your investment for each geofencing mobile marketing list member. When they come within a mile (or established perimeter) of your store, your system will see where they are and will react to get you more foot traffic and sales.

Setting up an SMS geofencing campaign for foot traffic

These smart SMS geofencing initiatives are a form of local marketing - and can be compared to 'direct marketing' from a few decades ago. However, the conversion rates for this kind of location-based campaign are much higher, and they have been proven to bring in foot traffic that converts into sales.

  • Mobile local ad network xAd reports that SMS geofencing is now the most popular location-targeting technique, and is used in more than half (55%) of all location-based advertising campaigns.

  • Victor Wong of PaperG has confirmed that national-local advertisers have seen a 70% lift in click-through rates for ads that have been dynamically localized and optimized, unlike generic adverts.

The verdict is clear - a quality SMS geofencing campaign creates high conversion retail foot traffic by alerting your existing customers to attractive deals when they venture into your virtual perimeter. From there, in-store deals and secondary sales techniques can be used once the customer has walked through your doors.

Are you part of the Mobile retail revolution? Get the guide here.

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