What is Geofencing?

Geofencing is a location-based marketing technique, similar to geotargeting, but performs in a slightly different way. Geofencing creates a virtual boundary using GPS or RFID technology. Once a device, usually a mobile phone, enters this boundary, notifications or advertisements are sent to the device.

In comparison to geotargeting, geofencing is less personalized. Geotargeting combines location and user data to drive marketing that will reach a target audience. Geofencing is a location-based marketing tactic that solely relies on a user’s presence in a specific area.

How does Geofencing work?

To use geofencing marketing, businesses create a boundary around the physical location of their store or another location they are trying to target. When a customer enters this area, they’ll receive targeted notifications on their device.

Try to think outside of the box when deciding on a boundary location. For example, if you’re at a tabling event, you can set up a boundary around the venue. This spreads the word about your booth and encourages visitors who might not have seen you in a big crowd. Another possibility is creating a boundary around your competitor’s company site to promote special deals happening at your location, swaying them to shop at your establishment instead. Of course, you can always set up a perimeter around your own store, encouraging customers to not leave empty-handed.  

Examples of geofencing you’ve likely experienced:

1.        Notifications at events. If you’re at a large event like a sports game or concert, you may receive updates about parking or concession stand deals when you enter the venue.

2.        Smart Home systems. If you have smart home thermostats or lights, your systems can be set to automatically adjust when you (more specifically your phone) enter or exit the boundary of your home.

3.        Snapchat filters. Snapchat has exclusive filters and stickers that are associated with geographic locations or special events, like national parks or birthday parties.

How can you tell if geofencing or geotargeting is right for your business? Start by evaluating the goals of your marketing campaign. Are you concerned about brand awareness or quick sales? Are you prepared to budget for paid advertising? Not sure where to start? Contact us at www.bluluxmarketing.com/consultations.