Why You Should Be Using Geofencing for Marketing

Geofencing is a location-based service that uses GPS technology, in conjunction with radio frequency identification (RFID) protocols, to create a virtual boundary – or “fence” – around a certain geographic area. It allows businesses to connect with customers in a more targeted and efficient way. As a result, geofencing has become increasingly popular for its various advantages, such as enhanced customer engagement, improved customer loyalty, and increased sales.

Geofencing provides marketers with a powerful tool to reach potential customers located in the vicinity of their business’s location by sending a message or a promotional offer to their smartphone or other mobile device. Marketers are also able to track customer activity, locate patterns in their behavior, and serve up targeted promotions at the right place and the right time. By doing so, marketers are better able to reach the right audience and make the most out of their campaigns.

Geofencing can be used for various purposes such as in retail stores, restaurants, and other brick-and-mortar outlets. For example, a retail store can geofence its shop area and send a notification to customers when they enter the store’s area. This way, the store can inform customers of special offers, discounts, and promotions that they can avail of while they are inside the shop. This is a great way to increase customer engagement to help drive loyalty and inside sales.  It can also be used to create a fence around competing businesses, potentially driving sales to people who are already shopping for certain products or services.

A great example of this is when someone is using a driving directions app, like Waze.  Ads for gas stations and restaurants appear on the screen while at a stop light, but not necessarily for the locations in the immediate vicinity.  Those ads, when clicked, will give directions right to the advertising location and provide some sort of special or coupon that is only available to those clicking on the ad. There might be a gas station or fast food restaurant located right outside of the person’s vehicle, but because the other locations geofenced them, ads are served from their competitors.

Aside from retail stores, geofencing has also become popular in the hospitality sector. Hoteliers are using geofencing to boost customer engagement and loyalty. Hotels can geofence their premises and serve up push notifications to customers informing them of their stay, special sales or upcoming events at the hotel. This allows them to build relationships with their guests and keep them informed about any developments.

Most recently, companies and staffing agencies seeking to recruit people who live in certain areas or already have jobs in certain places have been serving them ads for open positions of employment.  Since a large percentage of job applications are made on mobile phones, geofencing is a perfect tool.

As technology continues to advance, geofencing is sure to become even more widely adopted by businesses to gain a competitive edge. Contact us at Local Herbert Agency to get started with your Geofencing Campaign.