Geofencing is a type of location-based marketing that targets people when they enter, leave, or dwell within a certain physical location.
Geofencing uses GPS technology to sequester an area of your choice within a virtual fence. When you and your device move into this “fenced” area, that action can trigger outreach from a given brand, leading you to receive a text or push notification (provided you’ve opted-in to a service like this). The user would also need to give access to the brand to track the mobile device’s current location using GPS to activate geofencing.
A retail store might want to grab your attention when you drive into the area, or a vendor might want to capture you as you pass through a teeming concert festival venue. The purpose of geofencing is simple: to detect a user’s location and to use that location to serve them relevant, valuable communications. The location keeps getting updated as the user is on the go and won’t be triggered once the user exits the boundaries of this fenced area.
Geofencing is an alternative to triggering notifications based on time, as the notifications are triggered based on the user’s location. It can be tactically used to pull customers into your offline store or restaurant through online communication of a text message or a push notification.