There are many tools available to business owners today that empower them to get their name out there to new consumers creatively. Geofencing is one such tool, but its name may sound intimidating. Luckily, it’s not the kind of thing you need a degree in computer science to figure out.

In reality, geofencing is very easy to use, and it can generate great results for local businesses. What is geofencing, how does it work, and how can it get results for your business? Here’s everything you need to know.

What Is Geofencing?

Geofencing is a technology that establishes an imaginary perimeter around a certain area. Using GPS on consumers’ mobile phones, the system detects when someone enters the “fence,” and then greets them with an alert on their phone. This alert can be an offer for a deal at your business or an invitation to set up an appointment.

Geofencing Attracts People Nearby

When a geofence is set up around your business, you can target consumers with phone alerts when they come within a certain distance of your business. This is great for those business owners who don’t have the name recognition that a bigger brand has.

Let’s say you own a coffee shop. Someone might be driving through your town, needing an afternoon pick-me-up, but they don’t know your business. They see a big national chain on Google Maps and are resigned to going there, but just as they come within a two-mile radius of your shop, they get an alert on their phone: “Stop in for a large coffee and get a free cookie with your purchase!”

They didn’t even know to look for you minutes before, but now they’re turning down your street.

Geofencing Disrupts Consumers in Route to Your Competitor

Geofencing around your business is the most obvious application of the technology, but you’re not limited in where you can establish your fence. You can also set one up around your competitor’s business.

Maybe you own a children’s clothing store. You can put up a geofence around the big box store down the street, letting people know that you sell clothes that are ethically made and reasonably priced. That’s going to catch the eye of some of those consumers, who will gladly do business with you rather than a big brand.

Geofencing Generates Data

Beyond the short-term benefits (bringing new faces to your door), the technology also allows you to collect data on consumers. Over time, you can begin to see patterns in which geofenced areas are most popular, when people enter those areas, and how long they stay. This data empowers you to create even more effective marketing strategies over time, where you can get specific about how, where, and when you reach out to potential customers.

Geofencing might sound intimidating to someone unfamiliar with the technology. But in reality, it’s very easy to use and can get great results for any local business.

Want to learn even more about local marketing and geofencing technology? Check out our infographic.

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