What is Geofencing and How Can It Drastically Expand Your Business?
Written by Kellie Quain, Account Manager at MSM DesignZ
Whether you have your own local business, work in the marketing department of a national company, or fall somewhere in the middle, one thing is certain: you want to raise awareness of your brand and drive traffic to your website. You’ve most likely heard a variety of different tips and tricks for doing so, but what means truly work and are worth exploring? These fast facts about geofencing might make answering those questions a bit easier:
- Only 22% of businesses have reported that they are using hyperlocal targeting to its fullest potential
- Almost 80% of Americans use their smartphone everyday
- 51% of smartphone users have reported discovering a new product or company after conducting a search on their device
Now that we’ve crunched the numbers, let’s find out what they mean.
Geofencing is the practice of using global positioning systems (GPS) to define a geographic boundary, or fence, around a certain area. Once this barrier is established, an administrator has the ability to establish notifications in the form of an email, text, or app alert, when a mobile device enters the area. This ultimately means that a business can section off the geographic area in which they, or a competitor, are located and communicate with devices that are occupying that space.
Geofencing is a means to engaging potential customers who are already within a certain proximity of your location. Rather than having to persuade someone who is on their couch that they should visit your business, geofencing grants the ability to target individuals who are already geographically available to you. For example, a store could erect a geofence in the area surrounding its physical location. When users pass through, receiving a location-triggered alert for a sale or promotion makes them considerably more likely to visit the store and shop.
This sounds like a great tool to utilize thus far, right? Let’s take it a step further. Geofencing also allows the ability to target competitors. If you own a car dealership, for example, you could establish a geofence targeting individuals who have visited the location of a rivaling dealership. Once that individual receives an alert for your current promotion that is a better offer than they found at the original dealership, the individual will be more likely to comparison shop at your location than they would have been without the targeted alert. Establishing a geofence increases the potential for traffic to be driven away from your competitors directly toward your own business.
Regardless of the size or industry of your business, geofencing is an incredibly useful marketing tool that allows the targeting of potential customers who are either in close proximity to your location, or are shopping for a product or service you offer. To learn more about how our team can utilize geofencing to expand your business, request a quote or call our main office in Tarrytown at (914) 909-5900. We look forward to working with you and your growing business!
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