Geofencing: What is it and How does it Work?

Geofencing: What is it and How does it Work?

March 10, 2020 at 11:31 AM / by Cathy Atkins

Have you ever been online and realize a nearby company knows your location? It can seem like you are being monitored by “Big Brother,” or are under surveillance by the government like Will Smith was in the movie “Enemy of the State.” It’s actually nothing like that. In reality, geofencing is not nearly as imposing as you might assume and is really pretty cool. It is explained rather simply as follows: geofencing and location-based technology is the how behind locating a customer. As a business owner, you can use this technology to reach local customers, driving them closer to your business through various offers. In fact, geofencing can help you increase local sales and promote foot and website traffic alike. By now you are probably wanting to know a bit more about this game-changing tech…


What is geofencing?

This is basically a virtual fence that surrounds various geographical areas, hence the name geofencing. Within this virtual boundary, you can target anyone and everyone who comes into the predetermined area via location-based apps. The impressions are served on location-based apps only. This can also be used to recruit needed employees. For example, a hospital that needs to hire nurses can utilize geofencing to discover where they currently work within health care facilities, nursing homes and hospitals, etc. This information will allow the hospital to personalize an employment ad by marketing directly to these nurses. Hint: Offering a sign-on bonus can also be a great way to ensure your ad stands out if you are using geofencing for recruiting purposes.

how does geofencing work?

You set up geofencing through mobile applications like iOS reminders. This allows you to select an address or location where you send a specific alert or notification. Geofencing uses either global positioning system (GPS) or radio frequency identification (RFID) to send active alerts. Location services have to be turned on for customers to get these. Passive alerts, conversely, always go through if users have either WiFi access or their cellular data turned on.

what are the benefits of this tech?

There are many benefits to this type of technology, a few of which are listed below:

  • Marketing Purposes: You can use geofencing to offer in-store promotions or send alerts to customers in range of your store. Hint: Emails that include a promotional offer are often more successful in terms of sales. The idea is to incorporate a well-rounded geofencing strategy into your current marketing campaign and subsequently take advantage of every tool in your arsenal when it comes to getting the attention of potential customers.
  • Audience Engagement: Geofencing gives you the inside scoop on your customers or potential employees. It also allows you to narrow down your scope as it relates to your target customer. If you offer bonuses or sales based only on location or who gets here first, this will also encourage engagement with your audience.
  • Social Networking: This benefit is likely explained best via example. Let’s assume your company has a Snapchat presence. With geofencing, you can create a location-based filter that means only people who are near your business will see these posts. This will effectively increase your brand exposure as well. Let’s face it, social media is something that almost everyone uses in today’s society, so enhancing this aspect of your marketing strategy is a wise move.
  • Reach Customers More Effectively: Geofencing allows you to reach customers at the right time as soon as they enter your barrier. You are also reaching potential customers who are already on their phone. Remember, the average phone session is 40 minutes, so use this time to grab a customer’s attention effectively.

your next step

Now that you know the many benefits of geofencing and how it can enhance your current market strategy, are you ready to use it to increase local leads? Geofencing effectively targets those customers in your area who might have been considering shopping at your competitor’s store. Suddenly, they see your ad, and then choose your business instead. If you aren’t sure how to get started, schedule a consultation with fuze32 to learn how we can create a geofencing and digital targeting strategy that’s right for your business and will drive results.

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