What is geofencing?

Studies have shown that consumers are more likely to take action when they receive targeted ads and content that are relevant to them. The question is: how do you discover what is or isn’t relevant to them?

One way to determine relevancy is geofencing. Geofencing allows brands to send a SMS message or email to a consumer when they enter a certain area. The area can be set to a few hundred feet or a couple of miles, giving you the ability to send deals and ads to a specific area.

Do you sell snow shovels? There’s no need to tell your customers in Texas. What if a major snow storm is on the way? Set your geofence around the area that’s about to be effected by the snow storm. Geofencing offers a wide range of opportunities for business owners. You can link your geofencing with timing. If you own a restaurant, you can send out a coupon to the lunch crowd in the area. When the consumer gets that coupon at noon, it not only offers them a deal, but reminds them that you’re close by.

Geofencing also lends specificity. What if you only want to target people at baseball fields? What if you want to target the block of office buildings with your buy 2 get 1 coffee deal at your bakery? Geofencing isn’t limited to painting a circle around your business. You can highlight the areas that are specifically relevant to your business interests.

Programs like Foursquare operate in a similar way, but in order for users to gain access to those deals, they are required to check-in. While this is also a good way to encourage repeat customers, they have to find you first. Geofencing allows you to find them.

Your customers must opt-in to a reward program in order to receive these messages.

If you have a reward program, don’t forget to incorporate geofencing into your strategy.

Find out how to set up your own geofence here with Urban Mapping or Maponics.

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Posted on November 5, 2012, in Biz Tips, Technology and tagged , , , , , , , , , , . Bookmark the permalink. 2 Comments.

  1. A bit like the market trader shouting “Buy your fruit and veg here” … only people nearby can hear. …. but a bit less human?

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