The Benefit of Geofencing In Modern Marketing Strategies

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Woman enjoying mobile device receiving geofencing digital marketing messages

Marketing to people on the premise of where they are located is something that has been around for quite some time. The increase of GPS systems and other location tracking software in our mobile devices make determining someone’s location a commonplace ability.


Naturally, when you pair marketing and app creation with the knowledge of a consumer’s location you create a wonderful formula for delivering a brand experience to the consumer wherever they may be. Another benefit of geofencing is that the experience can actually be customized based on what particular locations the consumer is coming or going to!


This marketing strategy is referred to as geofencing. It is riding the rise of the mobile use wave and is only expected to steadily increase over the next few years. Geofencing targets in real-time, reacting to the consumer’s location as closely as a mile by mile basis. The “fences” are created around particular locations, say a storefront that is of interest to the brand with the geofencing strategy. They can execute a push notification, text message, or other marketing communication directly to the consumer whose location is being observed.


Push notifications receive high conversion rates. Statistics show that 54% of people convert upon receiving a segmented push, whereas only 15% convert upon receiving broadcast messages. These numbers are significant, given that 52% of people enable push notifications to be sent through to their phones. A prime example of using a geofencing marketing strategy could be found in the illustration of an ice cream parlor in a warm weather state like Florida.


Let’s say the ice cream brand utilizes a navigation software app company to display their brand on a map. The goal is for users that enter within a certain distance of their parlor to easily see that it is nearby. This strategy takes into account the customer’s needs, seeing how an individual walking around a shopping outlet in the area might appreciate some cold ice cream as the heat increases all around them. Combine a push notification with a prompt for a discount sale or an exclusive sweepstakes entry, and the navigation rate to the parlor is bound to grow.


Geo-fencing is becoming much more invaluable for businesses that are looking to increase sales in their brick-and-mortar locations. As surrounding retail stores close, other retailers could utilize this strategy with great content and enticing offers. If done right, they can bring the spotlight on their products and services to others that may be in the area.

If you would like to gain the benefit of geofencing for your business, and need a partner in developing the strategy to fit your needs, give your Online Capital Group a call today at (904) 600-3600. We will work with you to not only capitalize on the potential of your online real estate, but to increase the effectiveness of your marketing approach.

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