What is geofencing?

Geofencing uses the global positioning system (GPS) or radio frequency identification (RFID) to set geographical boundaries, creating a virtual barrier or “fence.” This barrier could outline the radius of a store or city boundaries to target consumers who enter or leave the exact location.

Perfectly targeted campaigns

Geofencing draws a virtual barrier around a specified location.

When retailers utilize this tactic, they can outline the perimeter of the neighborhood or city in which they want to target users. Geofencing uses location-based services (LBS) that track the exact moment an individual crosses within a radius of a specific location. Once a user has entered this geographic area, crossing the geofence boundaries, an advertisement or promotion is sent straight to the user’s mobile device.

Once a user has entered this geographic area, crossing the geofence boundaries, an advertisement or promotion is sent straight to the user’s mobile device.

Staying relevant

One of the most important aspects of every marketing campaign is staying relevant to the users you are hoping to target. Geofencing is a perfect way to overcome this challenge.

With geofencing technology, campaigns are always completely relevant to the user because it drives individuals to a store that is definitely within close proximity.

For example, if a user enters the region of a specific clothing store and the LBS is triggered, the store can deliver a 25% discount promotion ad straight to his or her cell phone.

Because it is known that the individual is already close to the clothing store, it is much more likely that the user will be able to walk right in and receive that discount.

Build the best campaign possible

Through geofencing, marketers can understand consumers at every step of their buyer’s journey.

Geofencing tracks a user’s exact location upon entering the geofence boundaries so that marketers gain insights not only into the location where each user was when they were delivered the promotion, advertisement or alert, but also the specific media platform that led to the store visit and/or sale.

When a shopper makes a transaction, their purchase information is tied back to their unique mobile device to show if the campaign was successful.

Marketers can then utilize this information to detail where the most effective campaigns were sent and what areas of the campaign may need improvement. This way, brands can continue to improve ongoing campaigns while learning how to optimize the performance of future campaigns as well.

Geofencing is an opt-in means of communicating, which means the user must subscribe to the store in order to receive the geofenced discounts.

Measuring success

Geofencing also provides marketers a means of measuring the success and accuracy of each of their marketing campaigns. By tying a person to his or her unique mobile device ID, marketers know each individual user to who they are delivering advertisements.

When utilizing geofencing, marketers understand where and when a user enters the geofence boundaries of a campaign.

A marketer can then verify if that same individual that entered the shopping area had previously been delivered a campaign pertaining to that store. This brings each marketing campaign full circle, allowing marketers to improve upon a campaign or increase its distribution.

The ability to accurately and frequently enhance a campaign is a vital aspect of staying relevant in this industry. Geofencing is just another way to bring measurable data specs to each advertisement, driving a stronger customer base and boosting overall revenue.