Granite Peak Digital Media

Small Businesses Add Geofencing to Their Digital Marketing Toolbox

In the past, we’ve discussed the importance of leveraging SEO to target local audiences for your business. Geofencing takes digital marketing for local audiences to a whole new level, allowing businesses to give potential customers a more individualized experience to drive sales.

What Is Geofencing?

Geofencing, in digital marketing terms, leverages GPS or radio frequency identification (RFID) to establish a perimeter, or fence, based on specific geographic locations. Hence “geofencing.” If anyone has ever played mobile games, such as Pokemon Go, that take advantage of real-world maps and use your smartphone’s GPS location to trigger certain events, then you’ve experienced some form of geofencing.

How Local Businesses Use Geofencing

When a business uses geofencing, a person walking through that location may receive a text, email, or app notification. These can be used to inform people of sales, new products, special events, and more. A bakery will use geofencing to let people know when a new batch of cookies just came out of the oven, for instance. Restaurants and bars will take advantage of geofencing to inform people of daily specials and live music. More ambitious businesses use geofencing to get an edge on their local competitors. An automobile dealership may place geofencing just outside of their local competitor. As a customer approaches or leaves, they get a notification on their phone offering better pricing or financing, this drawing more people away from the competition. Geofencing can be used in a number of inventive ways to boost sales and foot traffic for local businesses.

Geofencing Metrics

It is almost impossible for businesses to keep track of which customer purchases which products. Even post-sale surveys cannot provide a complete picture, because not every customer will participate. To get data and compile information about demographics, businesses use geofencing. By setting up geofencing to push promotions to a person’s smartphone that they need to show employees to take advantage of special offers, the in-person transaction will allow local businesses to gather data and further refine their overall digital marketing strategy. In fact, businesses such as car dealers, attorneys, medical practices, and more are using geofencing as an alternative to billboard advertising, because the conversion rate is much higher and the promotions are more effective.

Geofencing is a powerful tool that businesses can use to boost the strength of their local marketing campaigns.

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