November 13th, 2018

Putting Geofencing to Work

Have you ever gotten into your car and received an instant travel report highlighting the traffic around your commute? If so, then you’ve experienced a phenomenon referred to as geofencing, a location-based technology that can detect when a particular mobile device enters a determined area.

It’s essentially an invisible line or “fence” drawn around a specific location. By honing in on technologies such as GPS, Wi-Fi, or cellular data, geofencing provides businesses insights into when a potential customer enters their pre-determined space. Opening the door to act on that information. In the age of mobility, where nearly 4 out of 5 Americans have a smartphone, geofencing is quickly becoming a powerful business tool. As discussed in our Black Friday, Cyber Monday and the Future ebook, we’ll elaborate on one aspect of elevating customer experience for the future.

Location Based Marketing

Location-based notifications are taking industries to the next level, specifically those in the retail space. It’s as simple as delivering a personalized message to someone in the general vicinity to your competitors or sending a coupon to someone standing in the dishwasher section of your store. The adoption of store applications have opened the door to access location data, triggering the subsequent actions in the form of push notifications, text messages, targeted advertisements and so much more. Geofencing in retail offers the opportunity to engage potential customers and enhance the in-store experience to drive sales in an individualized manner. Here are a multitude of ways in order to improve your business using geofencing for retail:

Improved ROI

To boost sales with local customers, businesses can offer push notification deals through their app. A business can even apply geofences around their competitors’ stores in addition to their own to send targeted ads to lure customers away. Only a small portion of sales are generated by geofencing currently, but we can expect that to grow as the scope extends far beyond simple deal notifications.

Better Data

Though the majority of sales won’t be made directly through geofenced notifications, businesses can accrue vital data. For example, a business could know what brought a customer into the store in the first place, how often they come into the store, and how long they stay in the store. Geofencing in this sense acts as a “hands-off” method to collect data that might otherwise be challenging to collect.

Targeted Experience

Consumers love a personalized experience. Leveraging data collected on an individual customer’s purchase history gives retailers the opportunity to create custom targeted ads and promotions to maximize the sales experience. As well, personalization builds a relationship between the brand and consumer to foster brand loyalty.

As targeted ads improve their accuracy to consumers over time, geofencing will become more effective – boosting sales in the short term while providing key data insights that will be useful long in the future. Retail based geofencing is beginning to open the door for businesses to compete in the ever-changing shopping landscape, creating a more enhanced customer experience.

Marc Irish
President, Digital Commerce

Tags: ecommerce Geofencing Location Based Marketing retail

Connect with us

Job Openings

Want to be part of our growing team?

View More
Work with us

Learn how DMI can help you grow, or launch your business.

Get In Touch
Offices

See all of our locations around the world

View Locations