Geofencing Basics: What It Is and How It Benefits Businesses

Modern innovations have opened more avenues for businesses to boost their sales and expand their client bases. 

If you need to improve your business’ success rate, you may want to consider one innovative digital marketing solution: Geofencing. 

Geofencing is the most notable among the available options because of its unique features and advantages. 

What Is Geofencing?

Geofencing is a location-based digital marketing technique that allows a business to market its products and services based on the lockouts of particular geographical areas. 

For example, if a company wants to advertise their product in London, they can set up an area around the city where their ads are visible.

Since its conception, Geofencing has gained steady recognition, with large brands like Starbucks, Coca-Cola, and Apple using it for promotional campaigns. Geofencing is also one of the features that Facebook utilizes for “suggested for you” advertisements on your news feed.

How Does Geofencing Work?

Geofencing allows you to track a person’s location after setting up networks of Bluetooth beacons installed at strategic locations near your business. 

When a person enters or leaves these proximity zones, it triggers your app or website to show relevant content based on specific criteria, such as age, gender, and occupation. 

Aside from providing you with information, geofencing technology can also help send out targeted advertisements, notifications, in-app notifications, and text messages to consumers whenever they enter a geofence. 

What Are the Benefits of Using Geofencing?

Now that you have learned the basics of geofencing, you can move on to the more exciting part: The advantages this innovative technology has to offer to your business: 

Efficient Targeting System

As previously mentioned, geofencing is most used in targeting specific demographics as they enter the geofence, resulting in better engagement and sales. 

You can set the location for your geofence and, with the proper configuration, also specify the time and date when users will receive notifications from your brand. 

It’s also worth noting that the targeting system allows you to learn more about the community in a specific area. Geofencing makes the process of data collection more efficient, letting you use the information to adjust your digital marketing plans accordingly. 

Advertising Edge

A unique function of geofencing is its ability to send out advertisements, in-app notifications, and information to users within a particular location.

Many brands have taken advantage of this feature to focus on their physical location and virtual fence. You can do the same and earn an edge over your competition.

An excellent example of such a case occurred in 2016 with the Dunkin Donuts brand. The company applied geofencing technology to entice their local competition’s customer base by sending out targeted advertisements to users. 

Improved User Experience

If you invest in geofencing technology, you also gain the opportunity to personalize user experience whenever people enter the geofences that your business has put up.

Sending out targeted advertisements to specific demographics is only one of the many things you can do with this tech. Another consideration you can do is promotions, which are unique to a specific time of the year.

Imagine that it’s basketball season, and the people are gearing up for the tough competition. They have their favorite teams and are waging bets with friends and family. If you tie promotions to a certain team’s win, say, a freebie every time Lakers win, you may draw in existing and new customers to your business. 

Final Thoughts

Geofencing is an up-and-coming piece of technology that enhances the process of boosting a business’ sales. It gives you the opportunity to efficiently target specific demographics, collect data for better marketing plans, and personalize user experience. With the advantages geofencing offers, it’s almost a no-brainer for businesses to invest in it.

If you require the help of a digital marketing agency in Birmingham, Alabama, consider Nick the Marketer. We’re a full-service digital marketing agency that can help you craft solutions to get your brand’s name out there. We offer various services, including but not limited to geofencing, SEO, and social media marketing. Book a consultation with us today!