How Geofencing can Help Businesses to Grow their Sales?

In the times when the Internet was a heated topic and inconceivable fantasy, marketers had to find off-beat ways to reach their customers. When any customer passed by their store, they played flute to attract them. It was a tough but most effective way of selling in ancient days. Those times have gone by and now brands don’t have to put in so much effort to reach their customers. With the advent of the internet and technology, advancement brands can now fuse in user engagement at ease.

Mobile devices are an essential way of communication between brands and consumers. They help brands to get directly in touch with their customers. This shows user engagement has evolved from being 1-dimensional to being a 2-way channel. Brands can not only reach their users but users can also communicate with their favourite brands easily.

What is Geofencing?
You must have observed in science fiction movies that motion detectors send an alert if the actor enters the territory of the villain. Well, Geofencing works in a similar way creating a virtual boundary around a certain area with the help of technologies such as:

● GPS (Global Positioning System)
● RFID (Radio Frequency Identifiers)

“Did you know that as per SBWIRE’S report that the geofencing industry is expected to grow by 27.5% by the year 2022?”

From a map, you can draw and mark a specific geographical area and circle it with a digital barrier. This marked area can detect and communicate with mobile devices that fall into this territory. The creator of Geofence can send SMS, email, pushup notifications to the devices that enter into the marked area. This gives an opportunity to a marketer with three avenues to engage with users. When mobile device –
a. enters in the fence
b. exits the fence
c. remains parked in the fence

How Brands Can Leverage Geofencing Effectively?

Drive customers towards physical stores
Brands can send messages to the users who have interacted with a geofence in real-time. That message can be anything related to recent offers which lure them to visit their physical store.

Grow your sales with an increase in traffic
After applying point one, brands can convert their increasing traffic to the store from geofencing to product impressions and ultimately sales. It also depends on how well the offer has been pushed to its customers.

Create personalised customer experience
When brands engage with their customers at the right time, at the right place with the right message, it adds value to their brand experience. A personalized message that pops up for the benefit of a consumer from a trusted brand near them helps to create a positive and long-lasting impact.

Refine customer profiles with location data
Geofencing helps brands to separate their cream customers from the crowd. It enables them to collect useful data about their regular loyal users and connect the dots regarding their interest through behavioural data.

Compelling Use Cases of Geofencing

Dunkin Donuts
On World Donut Day, Dunkin Donuts released a geo-filter on Snapchat that gave a twist to a giant Donut over a person’s head. In order to unlock the filter, users had to visit the store. They also received a free Donut with an order of coffee.

BMW uses Geofencing for their newly launched advanced vehicles that have the new BMW trackstar. It adds an invisible geofence around the car. If the car moves beyond the geofence or anyone tries to access it without the key, it sends an alert to the owner.

Foursquare’s new Pilgrim SDK detects new locations of their users and delivers related recommendations sourced from their user community. The idea is to utilize user-generated content contextually and create a great customer experience.

Final Thoughts
According to marketing guru Seth Godin, we are living in the era of ‘Permission Marketing.’ Brands are hustling for new creative ways of engaging with their consumers. Marketing industry has adapted the technology accordingly and one of them is Geofencing.

With Geofencing, brands can enhance the value entering into their user’s lives resolving their issues or providing next level facilities. A location-based advertising platform like LEAP allows brands to connect with their consumers directly. It features advanced technology like GPS and RFID systems that enables them to send offers to those users who interact in the created geofence.

To learn more or for a quick product demonstration, you can contact us at

15,068 thoughts on “How Geofencing can Help Businesses to Grow their Sales?

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