Geofencing marketing is a location based marketing approach in which companies uses GPS, Wif-Fi or cellular data to set-up a programmed system in which
when a mobile device enters / exits a virtual boundary, a geofence is created around that location.
Companies can use geofence to send display ads/offers and other push notifications to their customers on mobile device whenever they enter/exit a particular location.
Here is an example of a user sam who has visited an apple store in his city. As he starts looking for products in the store he gets a notification on his mobile.
Dear Sam, Welcome to apple store. Now avail a flat discount of 20% on any apple product via XYZ Bank credit card. Offer valid till today!
Now, how did his bank come to know that he was at apple store?
A geofence was set up by his bank in the area around the store. When Sam entered the virtual fence, it triggered an alert with his bank. Then, by looking at his profile and credit history he was send a hyper-personalized message by his bank.
Companies from various industries and sector are using Geofencing marketing these days as it has several benefits. Some of them are following,
1. Delivers Hyper-personalized offers ( as discussed in above example)
2. Increase in sales and customer engagement
3. Increase Brand loyalty and customer trust
4. Easy to Afford ( This is cheapest among all the mobile marketing techniques)