Geofencing Analytics: What Should You Be Tracking?

Using geofencing as part of your marketing campaign can help you reach the right customer at the right time and place. However, it can be challenging to understand if a campaign is successful because it doesn’t always translate to direct sales. 

Geofencing companies use a range of analytics to understand campaign success, even when it doesn’t directly translate to sales. Here are some key performance indicators for geofencing analytics you can use when establishing and evaluating your next geofencing campaign. 

CPM

The cost per thousand (CPM, since mille means thousand in French, Italian, and Latin) is the cost of generating one thousand impressions. It’s the most common pricing model for digital and online advertising and is essential for understanding the success of any online marketing campaign. CPM helps you determine your geofencing marketing costs, which is crucial in deciding whether the campaign is successful.

CPM helps you formulate your campaign budget and is related to measuring your ROI. To find your ROI, subtract your CPM from your profits.

CPC

Cost per click (CPC) focuses on your target audience clicking or interacting with your advertisement. CPC can judge how much attention your campaign is getting, but the biggest weakness of CPC is that it does not show the quality of the leads. Sometimes, it’s better to have a higher CPC if it improves other key geofencing analytics. 

CTR

Your clickthrough rate (CTR) is a ratio of how often your ad is shown compared to how frequently people engage with it. A high CTR indicates that users find your ad engaging, relevant, and enjoyable.

The difficulty with using CTR as your only metric is that an interesting ad can easily skew it. Some customers will click on an ad simply because it grabs their attention, not because they are actually interested in your product or service.

App Engagement

Marketing campaigns aren’t always about directly increasing sales. Instead of only trying to get leads to make a purchase, your geofencing campaign could try to improve app engagement as part of your omnichannel customer experience. 

If this is the goal of your campaign, you can track the number of daily downloads or app usage. 

In-Store Traffic

For brick-and-mortar stores, one of the best geofencing analytics for any campaign is the number of customers who come to your store. If you can drive in-store traffic, it will positively affect your sales and profit.

Sales Metrics

Your sales metrics and monthly revenue can show how a marketing campaign increases conversion rates. 

Customer Experience Metrics

Targeting your customers in different locations can give you the power to focus on improving the overall customer experience. Depending on your company, the customer experience can include customer satisfaction, referral rates, customer effort score (CES), retention or churn rates, and customer lifetime value (CLV). 

Determine What Success Means for Your Campaign

While it is a good idea to look at geofencing statistics and see if your campaign is helping, correlation does not always equal causation. Just because you opened a geofencing marketing campaign and your sales shot up a week later does not mean there is a direct relationship between the two. There’s a good chance that they are connected, but it typically requires more investigation to ensure that the two are related. 

When establishing your campaign, you need to determine what success looks like. Your metric should measure what matters most to your campaign. No one-size-fits-all metric works for all companies and marketing campaigns. Each metric tells a part of the story of your marketing campaign, so it’s important to use more than one to best understand the complete picture of how the campaign functioned.

For example, suppose you’re interested in improving brand or product awareness. In that case, sales metrics are less important because they don’t show whether you are reaching new customers or driving new traffic to your brand.

Customize Your Geofencing Analytics to Track Your Unique Goals

When establishing your marketing campaign, first determine the goal or purpose of the campaign. Once you understand what you want from the campaign, you can decide which metrics best track that specific goal. 

Contact Agility today to learn more about geofencing and advertising solutions.