What is Geofencing and What Can It Do For Your Business?

Have you ever been out strolling downtown and receive an alert on your smartphone for a sale, coupon, or advertisement for a local store? How lucky and fortunate for you to be in the right neighborhood, right? Or, maybe it isn’t luck. Nothing about this scenario is coincidental. Local businesses are able to market to potential customers live and in line with their locations. This is all thanks to the GPS tracking system concept called geofencing. Business owners, this is the new strategy your brand needs to adapt in order to thrive and grow.

Geofencing for Businesses


We are all familiar with global positioning systems (GPS) and typically use them to get to our desired destination, from point A to point B. However, the software behind a GPS tool is able to do much more than just direct you to where you’re hoping to go. Global positioning systems allow brands to track and target their desired consumer through location services with the hope that they can then convert them by marketing a relevant sale or promotion of sales for your business.

Geofencing and BusinessesImagine if every area of shopping districts was divided into fenced off areas. As soon as someone opens the gate and walks through, you can recognize the proximity of their location with the store address and offer special deals in hopes to draw them into your brick and mortar. Essentially, geofencing is the creation of digital fencing throughout the shopping streets to make this consumer targeting possible.
Geofencing is not just limited to a person in relation to a company’s store location. Businesses are able to alert individuals when entering the geographical fencing of a competitor location as well, in hopes to sway the mind away from giving them a sale. This is a feature that needs to be handled tastefully. Could you image every time you passed a Starbucks coffee shop, you receive a coupon code for Dunkin Donuts? Too much contact! We don’t want to annoy or overload our customers. For a local clothing boutique or nail salon, mobile fence alerts are a more ideal strategy.
The strategy behind geofencing doesn’t stop at a walking shopper. Vehicle tracking systems are able to pull the same analytics for businesses to track who would be a potential consumer. When someone is cruising down the highway, your company is able to push promotions to that driver, in hopes of them making a U-turn into your store’s parking lot. The details can be as precise as shopping habits of the driver, so business owners can decide exactly which individuals that come through gps tracking would be worth that extra coupon or pop up ad. The ability to market for your local brand will now have the chance to directly target legitimate leads for sales.

Learn more about another new lead capturing technique, the “Intelligent Cell Phone Charging Station with Data Cabapbilities,” also known as Canvass, by goCharge.

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