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Geofencing – What is It? And How Can I Use It?

Customer engagement is key to nurturing a successful business. Regardless of the service you deliver, product you sell, or information you provide, an engaged consumer base makes all the difference when it comes to conversions. There are a whole host of techniques through which you can encourage customer engagement with one that has been gaining a great deal of traction recently being that of Geofencing.

What is Geofencing?

Proximity is key to many businesses that boast a physical store as well as a digital one. Unfortunately, being nearby doesn’t mean that the customer is automatically going to visit your store and having long searched for a solution to encourage people to visit certain locations when being nearby, developers and marketing specialists came up with the initial idea for Geofencing. By making use of map software, Geofencing provides relevant messages or ads to users based on their geographical location. Think of it almost like a person holding an advertising sign, but the person magically appears as soon as you come anywhere near the business they’re advertising and will proceed to follow you until they’re ‘swiped away’ (told to leave?). Working in a similar – but far less creepy way – geofencing serves to bring attention to a business or product where a person may have otherwise been unaware, or simply ignored it.

How Can Geofencing be Used?

Geofencing can be used at various different levels and whether obvious or not, is used across businesses of differing sizes. Some of our favourite examples include:

·        Amazon – package tracking is one of the most widely used forms of geofencing with users getting notifications based on proximity. Amazon also offers options for discounts delivered to users upon being close to certain stores.

·        Uber – If you have the Uber app, you’ll knowthat they’re not afraid to bombard you with notifications when close to densely populated areas. Uber have recently been geofencing airports to deliver targeted ads for as soon as people get off the plane.

·        Burger King – The Whooper Detour campaign saw Burger King geofence MacDonalds restaurants and offer burgers for 1 cent if customers ordered them directly from a MacDonalds premises.  

Benefits of Geofencing

Geofencing is great at enhancing local sales and encouraging customer engagement by driving fresh leads through your door as well as incentivising repeat business through the use of discounts and offers. Of course, geofencing is absolutely massive for brand awareness with potential customers frequently being completely unaware of the businesses in their vicinity; even if it doesn’t directly lead to a conversion, geofencing can make people in the locality far more aware of your business.

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