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  • Alise Talley

Here’s Why Geofencing Can Expand Your Audience

Updated: Feb 18, 2022

Geofencing in Savannah, GA

Do you want to hear something shocking? According to Asurion, Americans check their phones an average of 80 times a day.

For marketers, getting customer’s attention when they’re always on their phones poses a big problem.

So why not use smartphones as a tool?

Geofencing is a location-based marketing tool that allows businesses to send messages to customers in a specific area. This way companies can connect with people while they’re out and about.

How Does Geofencing Work?

Geofencing uses technology, like GPS and Bluetooth, to set up a virtual boundary around a targeted location. When a mobile device passes through, it prompts a message in the form of a text, email, or app notification.

Applications of Geofencing

The simplest way is to put a geofence around your store location, so when customers come in or pass nearby, they can get an alert on a promotional deal.

Another method is to put a fence around a competing company. If consumers in the other store get a notification, they can weigh their options better about the products or services they’re buying.

But be specific with how you do it. If you run a store near a freeway, you don’t necessarily want to give coupons to every car that passes by and spend money on people who have no interest in going into your store.

With geofencing, you can gather data to see where you can draw the most customers from. If you put a fence on one part of town, you can measure how your sales rates change compared to when you targeted a different neighborhood. This way, you can see which demographics prefer your company and which demographics are harder to convert.

Location-based marketing has proved to be effective in the past. Salesforce claims that more than 50% of people have interacted with a business after they got a message from a store using geofencing marketing.

How to Set Up Geofencing

When geofencing first began, it relied on the use of cellular data to locate and target users. Now, stores have turned in favor of apps to engage customers. Through apps, customers can opt-in by turning on their location and giving permission to get notifications.

You can tell users about the deals they can get by signing up through social media or in-store interactions. If your store offers loyalty rewards, you can even give them points when they sign up to encourage enrollment.

If you don’t have an app for your store and don’t plan on making one soon, you can use geofencing services, like BizLeads. Bizleads is a cloud-based network that allows you to access location data of consumers and connect with them.

When it comes to marketing in the digital age, businesses need to get tech-savvy. It’s not enough to open a store and expect people to stop by. Through geofencing, you can encourage customer loyalty and advertise to groups you wouldn’t ordinarily reach.

Geofencing is one of several ways you can expand your marketing and boost your business. Check out Sugoi’s other articles on digital marketing strategy.


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