Geofencing Marketing Technology

Geofencing marketing is the ability to advertise to potential customers within a specific geographic area. It is an attractive component of Beacon technology. It develops a constant and locally responsive billboard right in the palm of your customer’s hands. For instance, a customer is walking past your juice bar, they can receive an immediate coupon or other incentive to encourage them into your store. This can be useful to all other parts of your business, including merchandise and fitness classes. The possibilities are endless.

Proximity Marketing

Geofencing Proximity Marketing is commonly used outdoors to engage clients in certain locations with a relevant and timely message. In order to begin the engagement, your customer must have Bluetooth and Notifications enabled on their Andriod device.

For example, a retail store can setup a basic geo-fence in an area surrounding its physical location. When users pass nearby, they will receive a triggered alert advertising offers, ads or a specific targeted ad message. This increases the chance of getting them to stop in.

Alternatively, a travel agency, for example, could set up a geo-fence aimed at targeting individuals who are leaving a rival travel agency after stopping in to check prices. Hitting them with an offer such as 30% off all packages is more likely to make them come check out your travel agency.

Even if a geo-fenced offer or notification doesn’t make the customer stop by it allows the business to be a consideration. It also provides you insight on where exactly users received the offer to help map out better geo-fenced locations.

Use It?

60% of customers search for local information on their smart phone devices.
40% of customers search for information while on the go.
70% of customers will share their location with you for something in return.
People are 2X more likely to respond to ads if secondary actions are involved.

Some of today’s top brands that
are crushing the geofencing game include:


Uber has also delved into using geofences following the lead of tech-giants around the world. Uber utilizes geofences at several airports so that when users arrive at the airport they are informed about the number of vehicles available to meet their demands. This enables geofences to serve as a way of providing proactive customer service.


Walgreens is utilizing mobile marketing as a method to build trust and ultimately promote brand loyalty in its customers via geofencing. Each time a customer pulls into a fenced location a notification enables the user to open the application without having to look for it. After that, customers can view promotional offers and scroll through their account details.

Obviously, the data indicates that loyalty programs are a necessity for today’s consumers.  Your business can emulate Walgreen’s direction when you add a geofence to your mobile application.

This precise approach to mobile marketing gives the user an experience of precisely “what they want when they want it” which is a hard feat to accomplish in marketing. Service without interruption promotes customer loyalty.

American Eagle

American Eagle developed its applications on foot traffic to increase sales at its outlet stores. The leading clothing company sent promotions and notifications to customers who entered a geofenced outlet mall parking lot. The incentives motivated customers to walk into the door of American Eagle vs. its competitors. The outcome was a threefold increase in purchases.


Taco Bell’s application is a vital tool in their geofencing marketing tactics. Its mobile ordering attracts users to download its app.  With the application in place, hungry customers can order from their mobile device and then simply go pick up their food without waiting in line.

After customers have installed the application, the restaurant uses geofencing as a means of targeting people under 30 years old with push notifications each time they are in the locality of a Taco Bell. A swift reminder that they may order food from their phone and pick it up two miles down the road was a great way to appeal to the “Want it Now” generation.


BMW has utilized geofencing in their mobile business strategy in a rather diverse way. Where most organizations are utilizing geofencing as a tool for attracting consumer attention with ostentatious promotions, BMW’s use is a little more pragmatic.

BMW incorporates geofencing in their BMW Trackstar and BMW Trackstar Advance services. Your car’s position is pinpointed every 20 seconds after the activation of this service. If the car is moved without the use of its keys, and the car moves out of a designated geofence, it will inform BMW who will then reach out to the car’s owner.