Why Geofencing Your Business is a Good Idea

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India has seen remarkable development in the tech industry since the liberalization of 1991, with dramatic growth in the number of startups being founded and increasing sophistication of the world’s second-largest start-up ecosystem, according to a report by NASSCOM and Zinnov. This progress was stimulated by developments in information technology, telecommunications, Internet businesses, and business process outsourcing (BPO). Today, India has many well-established players operating at an international level. 

What is Geofencing?

Geofencing, or geotargeting, is a new way to market your products and services. Geofences are locations that businesses can set around points of interest. When customers enter one of these areas, they receive specific information about a business based on where they are. This enables your company to speak directly to consumers when they’re most likely to respond. The idea behind geofences is that you can use them to create tailored content for visitors as well as retarget visitors who have already made an initial visit to a specific location. They will then be served advertisements customized based on where they were when they first visited your website or mobile app, but they won’t be bombarded with random ads related to places outside their area of interest.

Geofencing allows you to create a geographic boundary around specific locations that your organization would like to target with your advertisements, and the geofencing advertising platform will then match the prospective customer’s location with your designated boundaries to determine whether or not to display your advertisement. This can be used to encourage people to visit your physical business location as well as make purchases online through your website; however, keep in mind that geofencing only works when the individual being targeted has downloaded the app that your company has developed incorporated this function into.

Here are four ways that using geofences can help your company. 

  1. Targeted Advertising: The power of geofences is their ability to target customers who are geographically nearby and highly likely to visit your store or office. If you have a brick-and-mortar location, you can use geofences to drive foot traffic by displaying targeted ads based on customers’ locations and behaviors, such as how many times they’ve visited or what items they’ve viewed on your website. Geofences are also useful for driving mobile app downloads.
  2. Creating Loyalty Programs: Geofence loyalty programs give customers incentives to return to your store or office more often. For example, if you own a restaurant, you could offer discounts on food or drinks when people enter and exit through a geofence at least five times within one week (e.g., Monday through Friday). You could also incentivize repeat visits with an exclusive deal each time someone enters through your geofence during specific hours over two days (e.g., Thursday evening from 5 p.m.-8 p.m.). 
  3. Real-Time Marketing: Geofences make it easy to send real-time messages to customers. Whether you want to announce new products, encourage customer feedback or share upcoming events, geofences allow you to tailor messaging based on where people are located. 
  4. Analyzing Customer Behavior: Geofences let you monitor customer behavior and gather data about their shopping habits including information about which products they’re viewing and purchasing so that you can better understand your audience and create more effective campaigns in the future.