How to Do Geofencing Marketing to Improve Company Sales

Geofencing marketing is a marketing technique that targets customers in a specific geographical area. It involves creating a virtual barrier within a specific radius, so people within that location get particular ads. 

How Does Geofencing Work

Geofencing marketing is a powerful tool for businesses to understand customer behavior and deliver targeted advertising messages to them. 

It identifies a person’s location through their mobile device in relation to the business’ service area. The aim is to reach people who are more likely to purchase or use the company’s service. 

Geofencing or virtual boundaries is also an effective way for companies to send location-specific messages to people with mobile applications. Businesses can pursue leads by sending out messages and push notifications to individuals based on their physical location.

Examples of geofencing marketing include sending location-based coupons to customers when they enter a store or providing promotions to people walking near a restaurant.

Why Set Up a Geofence for Your Marketing Efforts

Focusing on a precise marketing area allows you to gather data and analytics to build targeted audiences, increase user engagement, and gain insights for future marketing efforts.

You can set up geofencing around specific areas, like stores, restaurants, or even conferences and festivals. Doing this allows you to reach prospects in a way that fits their location and interests. 

Take advantage of this technology to physically target people who are most likely already considering shopping or getting a service.

For example, if you are a car rental company, it’s best to set up geofence-targeted ads within airports, seaports, and major tourist spots. People in those places would likely need transportation. 

Presenting your product or service to someone more likely to need it increases revenue opportunities exponentially. Additionally, since smartphones are integral to daily life, it is only fitting to utilize them to grow your business. 

Several studies show that location targeting improves downloads by more than double, suggesting that it can do the same for your business. Marketing in the digital landscape by targeting smartphones can positively affect your company and propel your sales upwards. 

How to Do Geofencing Marketing

Before anything else, you must use geofencing software to let you establish the area of your virtual fence wherein you’ll advertise. Then you must have a specific geographic area target to incorporate this marketing strategy into your business plan. 

Once you have established a virtual perimeter, you can create targeted ads to reach those who enter the area. With geofencing, you can ensure that you get the right audience with the right message at the right time.

This virtual border can also target customers with ads relevant to their interests. For instance, if customers frequent multiple coffee shops based on their location, they’re most likely open to coffee-related ads. 

Although we’ve been saying that geofencing should pinpoint a specific radius, it’s still best to add generic places. Include retail stores, airports, arenas, parks, and other public spaces.

Another tip is knowing where your competitors are; It’s crucial to understanding your market better and finding ways to gain an edge. 

It can also help you to identify potential areas for expansion or collaboration. Additionally, knowing your competitors’ locations can also be beneficial in understanding the trends of your industry. 


Countless businesses are already using geofencing marketing to boost their sales. Focusing on a virtual radius lets you pursue a willing market, utilize existing location technology, and learn about your audience. So, what are you waiting for? Turn leads into actual sales with geofencing.

Find out more about how you can increase revenue from location-based advertising from Nick the Marketer. They help businesses of all sizes get customers through digital marketing services, such as Google ads, social media management, and geofencing in Birmingham, AL

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