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Does Geofencing Make Any Difference for a Car Dealership

You decide to expand your marketing campaign to reach more people in a shorter time period. Since you are here, you must be looking into the cheapest solutions to reach the maximum number of people as all small and large companies and corporations are doing with geofencing. Among many uses of geofencing, marketing is the most prominent one. However, using geofencing for a car dealership, does that even make any difference?

You’ve come to the right place. Let’s have a brief look at what is geofencing advertising and how it works.

What Is Geofencing Advertising?

Geofencing means placing a virtual boundary or fence on a physical location. Every time any user with GPS, Wi-Fi, or Bluetooth on their devices crosses over that boundary, they will trigger an action. This action can be in the form of a push notification displaying the nearest car sale, discounts, promotion, or offering coupons. These are geofencing ads delivered strategically to the most relevant customers who are most likely to open it.

Apps on your smartphones and other devices serve Geofencing ads on your screens. It is one of the vast programmatic advertising marketing solutions available nowadays. Essentially, Geofencing advertising is the use of all features of geofencing technology for marketing.

Geofencing for Car Dealerships

The most crucial part of any geofencing mobile advertising is the choice of location. It is also the most significant advantage since you can place the fence anywhere, including your competitors’ site, which is precisely what McKie Ford-Lincoln, dealers of cars in South Dakota, did.

These business savy dealers noticed that rivals were outselling them according to the registration data. This data caused them to turn to geofencing technology to pinpoint shoppers through their mobile devices ID. They placed a geofence around there competitor jeep store. Every time a user crossed over the boundary, McKie Ford sent an attractive offer  to their IP addresses. These shoppers received an alert on their phone for a specific time period, offering them $500 off at Mckie Ford on their next vehicle purchase.

The low-cost geofencing advertising campaign yielded the dealership a sale of 12 vehicles and a vast reach to the more in-market customers. More and more dealers are turning towards geofencing marketing. The users of this technology noted a high customer conversion rate than any other form of advertising.

Does Geofencing Make Any Difference for a Car Dealership

Instead of spending valuable resources on Google AdWords, media ads like T.V, print, and billboards, you should consider exploring geofencing advertising. 71% of a car shopper’s interaction initiates on a mobile device, making geofencing mobile advertising the ideal advertising solution for dealers.

Here we list a few of the many benefits of using geofencing advertising for your car dealership:

  • Target your competitors’ customers.

  • Loyalty Retention, i.e. you can geofence your own dealership location to offer loyalty incentives to customers already shopping.

  •  Customer Concentrated Events, i.e. you can target local events where you know your potential customers are gathering, like an annual new car show

Brian Flores
Brian Flores
Brian is a business editor who writes about various topics such as technology, health and finance. He works along with the colourful folks that build a nation through tech startups. He is also a professional football player and video games enthusiast.


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