This guide covers what geofencing is, how it works, and its applications across marketing, operations, security, and more. It explains the benefits, types, and strategies for using geofencing to deliver timely, location-based engagement that drives results.
In this guide, we’ll explore everything from the basics to actionable strategies to help you make the most of geofencing. Discover how geofencing can revolutionize the way you target and engage with your audience.
What Is Geofencing?
Geofencing is a cutting-edge location-based technology that uses GPS, RFID, Wi-Fi, or cellular data to create virtual boundaries around a specific geographic area. When a user’s device enters or exits the geofenced zone, it triggers actions that are pre-defined. The types of actions you predefine can range from notifications, app features, or data collection, and depend upon your campaign goals.
For example, when a customer walks past your store, geofencing can send them a personalized discount directly to their phone, helping to increase foot traffic and sales.
What Is Geofencing Used For?
Geofencing is used for making interactions more timely and relevant. You can also use geofencing in a variety of industries, and for a variety of reasons.
In marketing, it can create instant touch points with people who are near a store, venue, or event, helping brands connect when interest is likely to be highest. This form of geofencing is among the most common, as it is an excellent way to ensure users are being targeted when they are most likely to convert, and with content that will also help to improve conversions (because it is specific to them).
In operations, you use it to track assets, monitor deliveries, and streamline logistics by knowing exactly when something enters or leaves a designated area.
For security, geofencing is used to access facilities, systems, or data based on where a device is located.
Even outside of business, it’s used by app developers to unlock location-specific features, by event organizers to enhance attendee experiences, and by individuals to automate personal tasks or get reminders tied to a place.
While the industries and applications vary, the common thread is that geofencing makes it possible to link a specific location to a specific action.
Now that you understand some common use cases for geofencing, let's dive into how exactly it works.
How Does Geofencing Work?
Geofencing operates using a straightforward three-step process:
A boundary is established by creating a virtual perimeter using mapping tools around a defined geographic area, such as a city block or shopping mall.
User detection is executed via GPS or cellular signals to determine their proximity to the geofence.
Trigger actions when devices enter or exit the geofenced zone. Trigger actions can be anything from sending a push notification or an email.
This seamless integration of location data and automation ensures precise and timely engagement with users.
Reach customers with hyper-relevant, location-specific messages.
Boost engagement rates by targeting users at the right moment.
Collect valuable behavioral data to refine marketing strategies.
Understanding the History of Geofencing
The roots of geofencing technology trace back to the early 1990s when GPS was becoming more widespread commercially. Initially used for fleet management and asset tracking, geofencing quickly evolved into a marketing super tool.
By the mid-2000s, industries like retail, hospitality, and logistics began leveraging geofencing to engage customers in innovative ways that were simply not possible before. Today, geofencing continues to grow, powered by advancements in mobile technology and data analytics.
4 Benefits of Geofencing
Geofencing offers countless advantages, making it a must-have for modern businesses. Diving in a bit further though, let’s see some of the most important benefits to utilizing Geofencing in your marketing efforts:
Laser-Focused Targeting
Geofencing ensures your campaigns are delivered to the right audience at the right time, whether it’s people near your store or attendees at an event. If you are attending a conference you can leverage geofencing to ensure every prospective attendee who enters the the conference hall will receive a promotional email or push notification regarding your offer, and given they are attendees you know your messaging will be highly relevant to them specifically.
Higher-Converting Content
Because geofencing relies on location-specific triggers, they happen in real time which means messages triggered are timely and relevant, which significantly improves engagement and conversion rates. No more getting lost in the background. With geofencing software like GeoFli you’ll get in front of the customer at a time that is most relevant to them.
Control Which Audience You Cater To
Tailor your campaigns based on demographics, location, and behavior, ensuring your message resonates to a higher degree with your prospects.
Geofencing Is Affordable
Geofencing reduces wasted ad spend by allowing you to target specific users, making it a cost-effective solution compared to traditional advertising.
3 Primary Types of Geofencing
Just like your customers - there isn’t one type of geofencing. There isn’t one-size fits all. Each type of geofencing prioritizes a different aspect of marketing, campaign type, and more. We'll break down each type of geofencing below, but for a more thorough understanding of the various types of geofencing, head over to our other post dealing specifically with the different types of geofencing.
Boundary Geofencing
This involves fixed boundaries, such as a radius around your store or a specific geographic area. Static geofencing is ideal for brick-and-mortar businesses looking to boost local foot traffic. In addition to boosting foot traffic this is an excellent way to drive more brand awareness, more clearly understand the prospective customers and their behavior in your specific area, etc.
Active Geofencing
Dynamic geofencing adapts to real-time data, like user behavior or traffic patterns. This flexibility makes it perfect for campaigns that need to adjust on the fly, or for campaigns that haven’t yet dialed in their approach, audience, or messaging.
Passive Geofencing
This type of geofencing runs in the background and uses Wi-Fi or cell tower data instead of GPS. It also doesn't require active engagement with the user's device to operate. If you don't need pin-point accuracy this type of geofencing is more practical for ongoing campaigns.
How to Utilize Geofencing in Your Content
Geofencing isn’t just for ads. Here are creative ways to incorporate it into your content strategy:
Drive foot traffic by sending location-based offers or reminders to encourage in-store visits.
Based on the user’s location and interests you can share tailored content such as blog posts, videos, guides, promotions, etc.
Gamify and improve your user experience by unlocking exclusive app functionality for users who enter specific areas. You can even do it when users enter specific areas at specific times of the day, week, month, or year.
Promote community events, seasonal sales, or exclusive deals in hyper-local campaigns.
Taking the first step into geofencing can feel overwhelming, but tools like GeoFli make it simple!
If you’re interested in testing GeoFli on your website you can start a 14-day free trial today! If you have any questions, feel free to fill out a form below and one of our website personalization experts will respond quickly!
Conclusion
Geofencing is revolutionizing the way businesses engage with customers. From boosting foot traffic to delivering personalized, location-based content, the potential is limitless. By leveraging tools like GeoFli, you can take full advantage of geofencing’s capabilities and drive results for your business.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
IP-Based Redirection SEO: How to Boost Rankings Without Risk
You'll learn how to use 301 redirects, hreflang tags, and location-specific URLs to maximize visibility and performance. Whether you're running an international site or targeting local markets, this guide shows how to use IP redirection without risking your SEO, and how GeoFli can help you do it right.
Custom Intent Audiences: Everything You Need To Know
This guide explains how to use custom intent audiences, now called custom segments, in Google Ads. It covers how they work, why they were renamed, and how to set them up and optimize them.