Deciding if geofencing is the right strategy for your company

As mobile technology – and mobile phone use – has grown over the last decade, so has the use of mobile marketing. If you’re considering geofencing as a strategy for your company it’s important to first understand what it is.

Geofencing is the term used to describe the use of location-based services, like Wi-Fi, GPS or cellular data, to prompt a unique marketing action when a device enters a designated location boundary. Imagine it like much like the fence in a backyard – the geofence designates a defined area, but instead of defining property lines, the geofence defines who should receive a marketing ping like a text, email, app notification, or social media advertisement.)

Now that we understand the what, it’s critical to understand the why to determine if geofencing is the right tactic for your organization. Here are a few statistics that may help understand why many companies see value in location-based marketing:

People are on their phones. Geofencing lets you be on their phone too. The average American will spend five hours on their phone each day. While it may seem like the phone would simply create a distraction from your marketing efforts, the reality is that a whopping 92 percent of US smartphones are capable of responding to geofences. So if a customer won’t look up to see your storefront, your billboard or your window display, meet them where they are – on their phone.

People want to feel special. Geofencing can let you make them feel that way.

Recent research shows that consumers prefer relevant ads. In fact, irrelevant ads are thought of as “annoying” and a majority of Millennials and Gen-Z consumers actually expect their ads to be personalized. By carefully utilizing geofencing technology, you can help deliver a positive, brand-boosting message to customers.

People want life to be easy. Help people find what they want with geofencing

Another huge value of geofencing is driving customers to a physical location. Location based ads can help customers find the product or services they want. In fact, when coupled with additional data – like demographic information, audience segmentation or transaction histories – companies can send highlight personalized, relevant advertisements to nearby customers.

While the decision of choosing geofencing will be unique to each company, it’s easy to see why so many businesses across the globe are capitalizing on this new, exciting technology.