How Geofencing impacts Business and Marketing

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What is Geofencing Marketing?

It is a form of marketing technique that’s focused on promoting a product or service to audiences that are based in a particular location.
In Geofence marketing, a geographic limit is set around a point of interest so that offers can be marketed differently based on different locations.
For example, when a mobile device get to Arkansas, puppy advertising can be triggered, while grocery can be marketed in Idaho, luxuries to people in New Hampshire, bicycles in Washington, etc.
The product mentioned in each of these states is more sold or used, hence, there’s likely to be more interested people in such location than others.

What is Geofencing and how it works

Impacts of Geofencing in Business

  • With geofencing technology, companies can increase the effectiveness of ad campaigns, sales communication, and marketing.
  • Location-based services provide marketers with a highly effective way of managing and protecting sensitive data within an organization.
  • A successful business can improve its profit margins by targeting the proper audience with the appropriate message based on demographics.
  • Using location-based data for advertising, sales and communications purposes allows small businesses to deliver their messages to the appropriate clients at the appropriate times.

Advantages of Geofencing

This technology is increasing in popularity due to its benefits to businesses and organizations.
Location-based services with geofencing technology effectively create a virtual perimeter that automatically targets clients who cross this boundary into the secured geofence area.
  • Geofencing Technology can improve Customer Experience
With notifications delivered to selected receivers, the system allows customers to receive notifications about changes in location.
For example, when customers enter a certain location or pass through a certain number of steps, a notification is sent to them automatically.
The notifications are personalized for each receiver and may include the option to listen to music, take a phone call, visit a particular place.
Customized notifications provide greater control over client interaction with location data, which in turn allows businesses to create custom experiences for their customers.
  • Geofencing makes Ad campaign more Effective
With a pay-per-click app, a business owner can decide how much money he wants to spend on a campaign.
Then, whenever a potential customer enters a specific area where he has signed up for a promotion, his ad is displayed.
As soon as the customer clicks on the ad, the program matches the visitor’s entry with the corresponding sale.
That way, the business owner receives instant credit for every ad that is displayed, and he doesn’t have to put in as much money to start an advertising campaign.
  • Smart Geofencing Helps to Protect Business properties
Smart geofencing application can include property conditioners that alert customers if doors or windows are left open for too long.
Property owners can set parameters for when doors or windows should unlock, so they don’t have to wait too long for someone to return after opening a door or window.
Some smart geofencing applications have added features that allow users to enter a specific area after locking an area, so an injured person doesn’t enter a closed area.
  • Geofencing helps in processing customer queries faster
With on-demand applications, business owners can instantly respond to customer requests.
When an on-demand sensor is activated, it sends a text message or emails to the customer immediately.
For example, some smart geofencing applications will send the weather forecast to customers who have requested information about wind speed and direction, as well as the local traffic situation.
  • Geofencing Enhances Safety
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Business owners can save both time and money with on-demand geofencing technology.

By using it to control entry points and make sure that only authorized individuals are allowed to enter restricted areas, he or she can ensure that employees and customers stay safe and avoid distractions.
The initial expense to set up a geofencing system may be minimal, especially if it is used alongside other security measures.
After all, many businesses choose to use it together with video surveillance systems and motion detection systems that already guard against shoplifting, vandalism, and theft.
  • Custom Ordering and Delivery System
The global marketplace is expanding at a rapid pace. As a result, the demand for specialized and customized delivery systems is constantly growing.
Drone delivery is one such delivery method that has gained momentum recently.
Today, consumers can access the online store and select from a wide selection of drone delivery services, ranging from pizza to dry cleaning.
In order to help customers select the best drone delivery provider, some companies have introduced smart geofencing technology that makes it easier for customers to analyze different drone services offered by different vendors.
Other examples of popular on-demand geofencing technology include parking sensor applications.
Conclusion
Geofencing technology is the next big thing for personalized service and it’s already impacting business and marketing approaches.