These days, most people carry their phones with them wherever they go, using them to browse the internet, shop, and communicate. This has caused a monumental shift in marketing, giving small businesses access to avenues that would usually only be open to larger corporations. One of these options is geofencing.

What is geofencing?

A geofence is a virtual perimeter that has been placed around a specific location. This could either be the precise location of a business, or the location of your closest competitors.  With this, companies can send notifications or messages or display relevant ads whenever customers are in that area.

Businesses can identify customers via a mobile app, their social media profiles, or via a person’s search history. All a company needs to do is define their geofence, identify who it is that they want to target and decide what marketing messages are sent.

What are the main benefits?

Like any type of marketing, the benefits you’ll reap from geofencing will depend on how well you implement and market it. Even if you happen to be their favourite restaurant, customers don’t want to be bombarded with endless marketing materials, so it’s important to find the right balance.


The majority of marketing decisions are understandably based on cost and return on investment (ROI). A successful geofencing campaign will bring you closer to the right person, in the right place, at the right time – lowering your cost. The popular US fast food chain Taco Bell, for example, allows customers in the area to place an order even if they’re not inside a restaurant.

Engages customers

With geofencing, you can give your customers a reason to visit your establishment. When they’re nearby, you can send them a push notification that informs them of your current offers and promotions, making them much more likely to pop in and take a look.

Gives you better insights

In today’s competitive market, an understanding of your customers and their behaviours gives you a good head start. You can gain a good amount of personal information from your customers to segment them with targeted ads, social media posts, and notifications that are more relevant to their needs and interests. It’s well known that customers are more likely to respond to a company that tailors their offers to their interests rather than a broad marketing campaign.