What is Geofencing?

To put it simply, geofencing is a location-based service. This up-and-coming mobile marketing technology provides companies with the ability to target potential customers within a certain geographic area. Geofencing creates a virtual boundary around a given location using the Global Positioning System (GPS) and Radio Frequency Identification (RFID). Once the boundary location is set, a pre-programmed response could be triggered once a device, transmitter, or RFID tag enters or leaves the desired location.

Why is Geofencing Important?

Believe it or not, geofencing has been around for quite some time. Luckily, due to the recent increase in the use of smartphones and mobile devices, this marketing tool has become very valuable to business owners. Businesses can "fence" a certain geographic location and then communicate with the devices in that given area.

Geofencing allows you to target consumers based on hyper-local location, which could lead to an immediate sale and a better understanding of your target audience. Not to mention, it allows you to focus your marketing efforts much more effectively.

Why Should Geofencing Be Part of Your Marketing Plan?

Today, many consumers rely on their smartphones and mobile devices, so why not take advantage of this opportunity? Using geofencing as a marketing strategy could lead to a positive impact on click-through rates, engagement, and most importantly—your bottom line.

Here are some examples of how companies are using geofencing:

Outdoor Apparel Company

This company implemented geofencing by using updates on the weather to advertise their products. Every time the weather in one of their geofenced locations was not looking good, they would send out a notification. These notifications would feature one or more of their products that would protect the consumer from the bad weather.

Makeup Store

This company placed a "fence" around its retail store locations. Once a customer entered the store, a "store companion" feature would immediately turn on. This feature provides the customer with access to information about past purchases, product recommendations, reviews, and limited-time offers.

Coffee Shop

This company has utilized geofencing by notifying consumers of their nearby locations. Every time a consumer enters their geofenced locations, the person would receive a notification that there is a location near them. As an added incentive, they would also receive a discount code or special offer. They are also starting to offer customers the option to order ahead when they are near one of their locations.

Car Service

This company decided to use geofencing around airports. When a passenger steps off the airplane, they would receive a message from this car service. The message would notify them of how many cars were available within that area.

Geofencing allows businesses to meet customers exactly where they are—literally. By setting virtual boundaries around key locations, you can deliver timely, relevant messages that drive real action.

Get Started with Geofencing

Geofencing is a powerful tool that is only growing in importance as mobile device usage continues to rise. Whether you are a local retailer, a service provider, or a national brand, incorporating geofencing into your marketing plan can help you reach the right people at the right time and in the right place.