Geofencing as a marketing tool: how exactly does it work?

Geofencing allows you to target customers who are near your business. This makes it possible to send them promo messages or collect their location data. In this blog, All-Connects takes a closer look at geofencing in marketing.

What do we mean by the term "geofencing"?

With geofencing, you can virtually demarcate a geographical area around your business or at any other desired location using GPS technology. A geofence can thus be compared to a virtual fence around an area in the real world. It can be an area around a building, but just as easily an entire neighborhood or city.

If your business has a mobile application, geofencing allows you to approach your potential customers as soon as they move into the defined area. This allows you to collect their location data on the one hand and approach them with notifications on the other.

How does geofencing work?

With geofencing, we use software plugins, which we implement in a mobile application. When your potential customers install your application on their mobile device, they can give permission to use their location data and receive notifications from you.

Thanks to Wi-Fi networks, GPS and phone towers, the umbrella system knows perfectly when a potential customer has entered or left your area.

How is geofence software used?

Companies can either actively or passively approach potential customers entering or leaving the virtual realm. By actively approaching, we mean sending location-based notifications. By passively, we mean collecting location data.

1 | Sending location-based notifications

Notifications or the slightly more negative name "push messages" can be used in your marketing process in numerous ways. For example, they could be promotional messages or offers. Or you can ask for feedback as soon as your customers leave your store. It's even possible to award loyalty points to customers who frequent your geographic area.

2 | Collection of location data

Geofencing allows you to collect and analyze your customers' location data. For example, you can measure the number of passers-by in your virtual area and the time customers typically spend there. Furthermore, it is possible to compile customer profiles.

With that data, you can optimize your marketing strategy so that you spend your budget more precisely and efficiently.

How large should a geofence demarcated area be?

You can make the radius of the geographic area as large as you wish. Although we advise working locally. It makes little sense to focus on the entire city in which you are located, as you will have a lot of competition.

So limit yourself to your own "backyard. Do you still not get the results you had in mind? Then you can expand little by little.

Is geofence marketing useful for your business?

Geofencing in marketing offers many opportunities, but not to every business. For example, your business must have mobile visibility and a mobile application. More importantly, of course, your target audience must use mobile devices frequently.

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Are you interested in geofencing for your business? All-Connects always works tailor-made. That is why we are happy to go over all your needs and wishes with you in a no-obligation consultation. You can easily contact us using the form below.

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