What Is Geofencing? – Things That you Need To Know

What Is Geofencing? – Things That you Need To Know

Know what is geofencing

The business sector is evolving day by day with the latest technological solutions, and one such solution that has been very helpful and trending these days is Geofencing. Marketing is an important aspect of business growth, and geofencing is the latest vertical in the marketing field that can create a good impact on the business.


Geofencing is location-based marketing that is recently trending in the marketing world. It has made things easier and flexible for marketers to achieve their targets. It is an entirely new way to accomplish the marketing efforts that will result in something extraordinary in your business. Hence, modern marketers are putting their weight on the latest location-based marketing practice.

What Actually Is Geofencing?

It is a location-based service which is used for marketing purposes by passing the alerts, messages, and notifications to the users in the surrounding boundary. It is the virtual fencing in particular geographic locations; when a particular user tries to cross the fencing, a triggered notification is sent to that person from the marketers or business people to promote their services.

There is a dedicated app or software for detecting the users in the fence, and the application is run using GPS, RFID, or mobile data. As soon as the users are in the geographic fence, they are targeted by the marketers. Marketers often target by push notifications, alerts, trigger messages, etc. It is a critical marketing activity that is catching the attention of business people because of the outcomes it has given so far to marketers.

It has the potential to advance your marketing efforts effectively and overall a great chance to increase the targeted revenues. Different business categories can effectively use these technology solutions in their marketing campaigns, and it is the tactics that have the potential to boost your business effectively.

geo fencing market size

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Let’s dive deep into elaborating the term Geofencing and its applications in the real business world.

Benefits Of Geofencing

Marketing is nothing but to get people’s attention, and for that, the right time is important to target particular users. Geofencing is the concept that allows marketers to target the designated users at the right time and trigger them with offers and rewarding messages to get their attention. According to Salesforce, more than 50% of users visit the stores after getting location-based messages.

Easy Targeting

Targeting a specific set of audiences in a particular geographic location is easily done with this practice, and marketing persons are relieved as finding leads and prospects has been way more accessible with these solutions. Marketers always need to target audiences for attaining their marketing goals of increasing the customer base, and targeting them with this method has been very relevant and effective. The rate of engagement with your designated audiences increases, and also they are targeted at the right time and place.

More Personalization

The personalized approach is very important in the marketing field, and that increases the chances of conversions. A particular user is targeted based on past experience or knowing the interest of people in specific demographics and geographic location and offering personalized discounts by notifying or alerting them individually. More region-specific customization in the marketing activity is possible with the help of geofencing.

Targeting The Competitive Market

Geofencing is capable of beating the competition by diverting users’ minds effectively, and one can easily target the competitive geographic locations with its help. People will lean over the more discounted things or something that is attractive or better than the competitors. Targeting the users in the competitors’ geographic location can be easy, and you can certainly get an edge over the competitors. Hence, it is a good practice that will allow the marketers to expand their reach and get their marketing objectives accomplished.

Create Buzz

The more the people are targeted with the personalized messages and in the different geographically targeted locations, the more buzz will be created about your business model. People will start reckoning your business as a brand. The awareness about your business model in a certain geographical location will increase your business range and improve sales. The hype that your business model needs to create is very important, and that will certainly be the advantage of geofencing.

Application Of Geofencing In Different Business Model

Various business sectors use Geofencing for various purposes, and one of the strong reasons it is used is marketing. There are different business models incorporating this tactic and leveraging their business scope comprehensively.

Food Business

Most of the business people in the restaurant and food industry are taking advantage of location-based services to enhance their business. The geofencing can be very well used in the restaurant and cafes as the business owners can easily alert and notify the persons who are in their fencing targeted areas. The offers like 50% discount on meals, etc., can attract the people and chances are high that they will go with the offers triggered to them.

Shopping Malls And Stores

Shopping malls and stores are the businesses that can better take great advantage of the location-based tactics for increasing the sales of their products and services. Any users in the stores’ geographic fencing are directly alerted to buy the things by offering the discounts and B1G1 like offers that attract them and force them to visit the stores. This marketing experience could be continued into an omnichannel phygital customer experience with the use of beacons and branded QR codes with logos.

The lead generation tactics have been exceptional with it, and that is something that the marketers have been benefited from.

Online Taxi Service

The online taxi services app uses it for the same purpose as the stores, and restaurants use it for, but it is also used to offer rides to customers. The GPS enabled system uses geofencing tactics to allot the drivers for the particular rides in a certain geographic area. Hence, the popular ride-sharing apps are using such tactics to run their business model.

There are multiple uses of geofencing in various industries, from tracking the locations to driving sales. It is the practice that is used in the retails, delivery businesses, construction sites, warehouses, etc. Hence, tracking the closed geographical location can be a great advantage in many business models.

How To Make The Most Out Of Geofencing?

Geofencing is a great advantage to marketers without a doubt, and to make the most out of it; you need to create limited fencing. It is always good to adapt in smart ways, and limiting your boundaries in this tactic is very important. A designated geographic area is to be targeted rather than expanding the region. Focusing on the limited regions will give good results.

Only triggering messages and notifying alerting is not the way to use this solution. A more personalized and well-designed CTA is required, and you need to work on your messages by evaluating the results. The response from the people is very important, and if you are not able to have conversions, all your efforts will be ruined. Integrate different marketing strategies to make the most out of your location-based service.


Geofencing is definitely a remarkable concept that can leverage the business model effectively and make the job of marketers effortless and efficient. It is the concept that has so many different applications making things flexible and easier for business people. It is the concept that needs to be more familiar with the business people in the coming years so that they can better take advantage of it and uplift their business model.

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