What financial institutions should know about geo-notifications

Do you ever notice that your phone chimes whenever you’re near your favorite restaurant with a promotion about a new appetizer or drink special? Have you become accustomed to receiving a conveniently timed message about a sale that’s going on when you drive past a mall? For some, these may be well-placed cases of serendipity; for others, it may be the shopping gods sending good vibes their way. Whether you believe it’s karma or just an odd coincidence, one thing is certain: geo-notifications are an essential part of mobile advertising campaigns.

What is a geofence?

To understand how geo-notifications work, you must first understand geofencing. This is the term of art given to location-based services that use GPS, Wi-Fi or cellular data to elicit a certain response whenever a mobile device enters a particular area or venue.

Common uses for geofences

Geofences can be configured to generate push responses, send targeted text messages or trigger specific advertisements for consumers when they enter (or exit) a chosen area. In a nutshell, a developer or app administrator creates a virtual boundary around a specific location using a GPS- or RFID-enabled software (such as Google Maps). When the user of an app reaches or gets near the location (essentially entering the geo-fence), a response will be triggered, and the app user will receive a notification.

While one retailer may establish a geofence around an intersection near its location, another may build one around a competitor so that a customer will receive an enticing offer that may draw them away from a rival. Other retailers may choose to build around outlet centers or complementary venues to maximize secondary sales. Whatever the use, geofences are necessary for effective mobile ad campaigns.

As mobile advertising becomes a mainstream method of winning new customers, financial institutions can make the most of the virtual marketplace. Imagine the ability to remind account holders of the newest car loan promotions right before they reach a car dealership. Consider the benefit of nudging potential homebuyers to promote the latest (and lowest) rates on 30-year mortgages.

Working with Larky

A knowledgeable business partner can help lead the way. Larky is a business-minded company known for building compelling and informative engagement programs for financial institutions. Larky understands how to connect with a particular audience by generating the right message at the right time and place. Larky’s knowledge base has been developed through thousands of interactions with financial institution leaders, account holders, app developers and advertising engineers. For instance, Larky understands the importance of geofencing on users’ mobile phones because its technology is the most power-friendly in the industry.

As alluded to earlier, financial institutions must make the most of the digital marketplace. It’s no secret that millennials and Gen-Zers are better approached through mobile devices compared to Baby Boomers and Gen Xers. This means younger account holders represent an important aspect of future growth. Larky is mindful of the subtle nuances between different account holders and can help financial institutions gain new business while cultivating long-lasting relationships. The possibilities are endless when you consider real-time promotions and personalized content. To learn more about how developing and/or maintaining a personalized mobile advertising plan, contact Larky.