🪄 Geofencing for Hyper-Targeted Marketing

Hey,

The Spells Master is back!

Welcome to the 130th issue.

Today's topics:

1. Geofencing for Hyper-Targeted Marketing

2. A tool to Find Cheaper Alternatives Of Expensive Products

3. One recommended video on Why Do Customers REALLY Buy?

Geofencing for Hyper-Targeted Marketing

According to Wikipedia, Geofencing is a virtual perimeter for a real-world geographic area.

A geofence can be dynamically generated (as in a radius around a point location) or match a predefined set of boundaries (such as school zones or neighborhood boundaries).

There is a difference between Geofencing and Geotargeting. Geotargeting targets a specific location. Your ads will show up in that particular area if the user is in that area. Once they are outside of that location, they won't see the ads. Geofencing is when you build an audience of whoever visits a particular area using their device id and then you can target them wherever they go. On top of that you can do IP Targeting so you can make device id to a particular IP and then you can target everyone who uses that IP. This is useful for targeting influencers who live together to create content like the Sway House.

A geofence is useful because it is a great way to target people on their real-life interests. The reason Facebook Ads work well is because they have mapped out everyone's interest on the digital world. And you can use Geofencing to do it in the physical world.

1. Local Gym Geofencing

A local gym gained 73 new memberships by Geofencing Competitive Gym Locations.

The objective was to increase the number of 6-month and 12-month gym memberships. The problem was the gym was in a competitive area.

So they came up with a solution by using Device ID and conquest targeting. Conquest targeting means to post an advertisement of your own product next to your competitor's product.

The result was the gym gained 73 new membership during the 6-month of that campaign. They spent $5,400 and got back $38,500 in revenue, a 7x ROI.

2. Walmart Geofencing

For customer convenience, Walmart created a "Map Your Deals" button at the bottom of its app.

On clicking the button, customers can view the high-demand product locations, which are marked via color-coded maps.

Using Geo-fencing technology, when customers are inside the store, the app will automatically display the "Map Your Deals" button on the main dashboard of its front page, so customers can access the maps easily.

Another thing Walmart did is use its Geofencing technology to get the order ready for the customers coming to pick up their orders who have ordered things from the official app.

3. Blue Collar Worker Geofencing

If you want to target blue collar workers and get them into better paying jobs as a white collar worker, then you can use Geofencing to do that.

You can Geofence a factory or a bus station where blue collar workers go and then serve them an ad "Looking for better pay? Join this coding bootcamp"

There are obvious use-cases for local businesses. For example, you can geofence a building where all the plumbers go and get them into your business. If you are sneaky, you can go after competitors' building.

4. Starbucks Geofencing

Starbucks uses geofencing in their mobile app for various purposes:

1. Online ordering

2. Payment processing

3. Rewards program

4. Notifications

It had a feature that suggested nearby locations for order placement. It was later modified as it was causing confusion for users.

Current use-case is it shows happy hour notifications when you are near a store. Starbucks sends a notification about a limited-time seasonal drink to entice customers to stop by if they are near a Starbucks.

5. Nest Smart Thermostats Geofencing

You can use geofencing for home automation.

You can install thermostat module on the wall. And your phone will act as a mobile geofencing module so it can detect when you enter or leave home.

This feature allows you to automatically adjusts temperature based on occupancy. And save energy by reducing heating/cooling when no one's home.

There are countless examples of Geofencing that you can use like tracking an entire cricket stadium and showing them betting apps once they leave that particular location or you can use it to increase drive through for a dog food brand by targeting dog stores, dog parks, and veterinary clinics. This isn't

A tool to Find Cheaper Alternatives Of Expensive Products

Dupe is a tool to find cheaper alternatives of expensive products.

You can find a $1,250 couch for $199 if you use Dupe. Turns out, most of these luxury products are built cheaply. Its branding at its finest.

There was a class-action lawsuit filed against Dior for its Dior-branded handbag that was made for $57 and then sold on for about $2,800, an obscene 48x markup.

One recommended video on Why Do Customers REALLY Buy?

This video is a mini masterclass on why customers actually buy things.

It only has 11k views but its a hidden gem. I bet you'll think differently after watching it.

One quote that stuck with me:

Top Tweets of the day

1/

Always have an onboarding form to ask customers where they found you. There are channels where you might be getting fewer views but the conversion rate might be insane.

2/

If you want to use photography prompts in a Text-To-Image generator like Midjourney, then Claude is there to help.

3/

2 lessons:

1. 11k followers seems small in a world where celebrities have 500k to 5m followers. But 11,000 people can actually fit in a mall.

2. The amount of effort it takes to work with a small creator (1k follower) and a bigger creator (11k followers) is the same so why not maximize income potential assuming both have followers of higher quality aka whales

Rabbit Holes

1. A marketer scales his startup to $50k MRR on a $500 NoCode stack! - You can get far away with no code. With AI, coding has gotten a hell of a lot easier too.

2. How to become famous - 2 simple steps to become famous: (1) Hang around with famous people (2) Create content about hanging with famous people.

3. One Big Idea - One big idea can change your life. For changing your day, you can use Shaan Puri's One Big Thing Framework. Identify the one highest impact thing you can do each day. And once you execute on that One Big Thing, everything else you do is icing on the cake.

Until next time,

Your Spells Master!

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Read all the old case studies here.

More Startup Spells 🪄

1. Social Media's Unspoken Rule (LINK)

2. Keysearch's Guerilla Meme Marketing (LINK)

3. Content Repurposing: From 'Am I The Asshole' To 'Am I The Jerk?' (LINK)