A geo-fence is a virtual perimeter for a real-world geographic area. The use of a geo-fence is called geo-fencing. Its applications are diverse but, in this article, I will concentrate on marketing and its value in a business.
Geofencing constructs a virtual boundary around a business location using a combination of technologies. namely;
1. GPS
The Global Positioning System is a network of satellites orbiting the earth that can triangulate an individual’s location to an accurate degree.
2. Radio frequency identifiers
Bluetooth technology contains small computer chips that use radio waves to connect with each other.

The popularity of smartphones and mobile devices now makes geofencing incredibly valuable as a marketing tool for business owners.
Benefits of Geofencing for Marketing
One of the biggest beneficiaries of geofencing is online marketing since it allows marketers to take their efforts to a new, localized level. Here are some of the benefits of marketing with geofencing.
1. Enhance Local Sales
Local optimization, or the ability to rank high in local searches, is extremely valuable for most businesses (and their SEO). If you are making efforts to improve your local performance, you need to look into geofencing. Since it is a location-based system, you can target local customers in a defined geographic area. One way to do this is by sending promotions via push notifications to customers in your area. You can easily change promotions each day or have limited-time offers that will lead to increased sales from local customers.

2. Increase Analytics and Tools for Metric Analysis
Local sales can be difficult to measure. What is it that brought a customer into your shop? If you don’t have the chance to survey every customer who walks through your door, this can be difficult to connect to your online efforts. However, if customers are coming in with your promotions from geofencing, there are a number of metrics you can measure, including their sales, how long they are in your store, and how often they visit your business. All of this can be valuable information that adds depth to your analytics.
3. Provide Personalization for Customers
Another benefit of geofencing is that it allows you to collect data in order to personalize customer offers. It gives you demographics about the local population, including what kind of offers interest them and gets them into your store. If you look at purchase history and realize that local customers prefer a certain product, you can alter your promotions accordingly.
Geofencing offers a variety of possibilities for mobile users, from interactive shopping lists (and reminders to pick up milk) to home security systems, garage door openers, automatic coffee pots, limited-time offers for your favorite restaurant, or a suggestion for a new restaurant you haven’t tried before. For marketers, the focus is on push notifications and mobile advertisements that can be tied to a business location.
Below are some of its application with an example given to each.
Marketing A business can text and opt-in the customer coupon code when the customer’s smart phone enters a defined geographic area.
Human resource management An employee’s smart card will send an alert to security if the employee attempts to enter an unauthorized, geo-fenced area.
Fleet Management Geofencing can alert a dispatcher when a truck driver breaks from his route.
Law enforcement A bracelet can alert authorities if an individual under house arrest leaves the premises.
Drone management A sporting event can use geo-fencing to create a temporary no-fly zone that prevents drones from crossing a defined perimeter.
Home Automation When the home owner’s smartphone leaves the home’s geo-fenced perimeter, the thermostat lowers itself to a pre-defined temperature.

This is quite an interesting topic to do more research and simulations on.

Compiled by: Benjamin Tua