Geofencing Marketing Definition
Geofencing is the use of GPS or RFID technology to create a virtual geographic boundary, enabling software to trigger a response when a mobile device enters or leaves a particular area. In the context of promotion and loyalty management software, geofencing can be used to define the promotion eligibility or trigger notifications and reminders related to promo campaigns.
Geotargeting is very similar to geofencing. Geotargeting targets users or devices based on their desktop location, while geofencing targets users or devices (usually smartphones) based on a given dynamic geofence – as users leave or enter a given perimeter.
What are the benefits of using geofencing?
- Improved personalization – geofencing allows you to target incentives at specific audiences at specific times, increasing the likelihood of conversion.
- More effective marketing campaigns – thanks to better targeting, you get to enjoy higher conversion rates, save marketing budget, and achieve satisfactory ROI from your campaigns.
- Geoconquesting – you can place geofences around your competitors’ locations and lure their customers away.
- Nourish loyalty – you can build customer loyalty thanks to highly personalized, targeted communication.
- Getting customer feedback and referrals – you can reach out to customers who have left the geofence, asking them to fill out a feedback form and get more insights about their experience. You can also send them an incentive to refer your business while their impressions are still fresh.
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