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Geofencing- What You Should Know?

The next level of personalized marketing is Location-based marketing. Location-based marketing has vast potential to target potential consumers. You can do a lot of things like sending a personalized message to the people around your store to attract them to your store. Now, the question arises that how specific can you be when you try to target people based on location? The answer is that with the help of geofencing technologies like RFID (Radio Frequency Identification) and GPS, you can target even the smallest locations like a building or a street.

What is Geofencing?


Photo Credit: Mapbox, Flickr

Geofencing is referred to virtual boundaries set up around a specific location to trigger a message or push notification whenever someone enters or leaves that specific area. You can do personalized marketing by sending the potential consumers a push notification or personalized offers through message as they cross the fenced location. Geofencing uses technologies like RFID, GPS, Bluetooth, Wi-Fi, etc. to enable location identification.

How Does Geofencing Work?

Geofencing is a technology that can be used quite widely as per your need of use and accuracy. You can virtually create the geofence anywhere you want, for example- around your city or your store or even around your competitor’s store. You can make the geofencing work anywhere whether it is indoors or outdoors.

There are a lot of platforms available online that can handle all your geofencing work and one such service provider is Radar. The radar will help you build better products and make better decisions with the help of location data. It offers location-based services for a wide range of businesses like travel, shopping, food, social, entertainment, etc. Radar promises you to offer the best service in every aspect that will improve your business.

What are the Limitations?

Indoor Setup– If you want the geofence to work indoors or in a smaller area, you will need Wi-Fi or beacons to be installed in the whole area.

Background Functionality– As people do not generally keep their phones or the apps open all the time. And thus geofencing in the background is crucial to many projects. But if you’re only using geofence in the background, you’re missing out. Geofencing can increase user engagement, by both pushing contextual information to users in the background, and pulling contextual information for users in the foreground, without any tapping or searching requirement.

Size- The size of a geofence can go as maximum and minimum as you want. But the limitation of having a larger geofence, say a whole state, is that you will be able to send the same notification to all the app users in bulk, regardless of their area. For the minimum area, you have to be dependent on the technologies you are using like GPS or Wi-FI in the area for the accuracy of data and location.

Battery Consumption– There are a lot of aspects that you have to take care when you are building your application, like the accuracy, background functionality and very important, battery consumption. Here you have to understand that the battery consumption in your app will enhance when you start location services, but if you take a little bit care and use well-designed positioning stack, the consumption will be minimal and will not affect the app users.

Benefits of Geofencing in Marketing

Now, here we are listing some very basic benefits of using geofencing for your business in the market.

  1. Better Targeting

By sending the personalized message based on the location, you can better target the potential customers in the area and attract them to visit your store. Geofencing assures personalization and improved targeting of the marketing messages.

  1. Better Engagement

If you provide your customers personalized offers on your app, they are more likely to engage with your brand. This not only provides better engagement with the customer but also increases brand loyalty from them.

  1. ROI (Return on Investment)

Geofencing makes it easy for you to analyze the reaction and success of your offers that you send to the customers through the message and better understand the marketing strategy for a better ROI.

  1. Better Data

Once you get into the location-based marketing, you get access to a lot of data that you can use for the betterment of your brand by analyzing the data and categorizing it into segments which are more approachable and useful for your business.


So, in this article, we hope to have covered all your doubts regarding Geofencing. But one more thing you should be careful with is that you should not send a lot of push notification or messages to the customer as this can irritate them resulting in their opting out of your messaging or even uninstalling your app. Try to send only relevant messages. That’s all for now.