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What is Geofencing and How Can it Benefit You?

What is Geofencing and How Can it Benefit You?

| WSI Genesis | , , ,

A new tactic that is worth exploring for your mobile ad campaigns is the use of geofencing. Geofencing is when an advertiser creates a virtual fence around an address or zip code and creates ads within this area. This practice has been used in the retail industry quite often to get people to purchase items or visit a business.
Within this virtual fence, it’s easy to serve ads to a certain group of people and present special offers or promotions. Geofencing also allows businesses to deliver highly targeted ads that are run around a specific event or location. It’s essentially a 21st-century alternative to direct mail.
Customers must opt in to geofencing by consenting to have their digital devices geolocated by your business. Say your business sets up a booth at the mall over the holiday season with some of your hottest products. You can ask customers to opt in to your promotion, and if they do, they can receive text messages when they are physically nearby your store. By being able to target customers near your physical location with a discount or special offer, you can influence their shopping habits. This is one example of how geofencing works.
Like other forms of marketing, geofencing isn’t a solution in its own. It should be part of a larger marketing strategy. The goal is to generate enough interest and put together a geofencing campaign that encourages repeat business and strengthens customer loyalty. Let’s discuss a few of the other benefits to this marketing tactic.

  • Geofencing is flexible. You can set the ads for any distance you want, such as an entire city or the homes located on a particular block.
  • Geofencing can be used to gather data about your customers and study their behaviors. This information will help you in future planning of ads, store layouts and other marketing efforts.
  • Geofencing can be used at events. Once attendees are checked in, they can use their smartphones to gain information about speaker information, agendas, materials, promotions and more.
  • Geofencing can be used for just about anything, whether it’s sharing a special offer, including a link to your website or a reminding a customer of an appointment.
  • Just about any industry can benefit from geofencing. Some of the most common industries to use this tactic include real estate agents (notify people of open houses, new properties, etc.), local businesses (reminders about orders, invitations for free samples, etc.) and events.

About the Author

Kevin Dean, President of WSI Net Advantage…


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