Geofencing is a location-based marketing strategy that utilizes the global positioning system (GPS) or radio frequency identification (RFID) technology to create a virtual boundary around a physical location. This allows businesses to target potential customers within a specific geographical area, sending them personalized messages or notifications based on their location. Geofencing has revolutionized the way businesses advertise and communicate with their audience, making it a popular tool in the digital marketing world.

What is it?

Geofencing is a process of setting up a virtual fence around a specific geographic location, typically a business or an event. This virtual fence can be customized to any size or shape, depending on the business’s needs and goals. Once the fence is set, using GPS or RFID, the business can then track the movements of potential customers within the designated area and send them targeted messages or promotions. The messages can be in the form of push notifications, text messages, or emails, and can be delivered to the user’s mobile device when they enter or exit the designated area.

Why is it important?

Geofencing is an essential marketing tool for businesses as it allows them to target potential customers in a specific location. This location-based marketing strategy allows businesses to reach their audience at the right place and at the right time, increasing the chances of conversion. The personalized and targeted messages sent through geofencing have proven to be more effective in engaging customers and driving sales compared to traditional mass advertising methods. Moreover, geofencing also helps businesses to track the effectiveness of their marketing campaigns and adjust them accordingly to maximize their return on investment (ROI).

Who uses it?

Geofencing is widely used by businesses across various industries, including retail, hospitality, healthcare, transportation, and entertainment. It is especially popular among brick-and-mortar businesses, such as retail stores, restaurants, and event venues, as it allows them to attract customers to their physical locations. Apart from businesses, geofencing is also utilized by organizations and event planners to enhance the overall experience of their attendees by providing them with relevant and timely information.

Use cases:

One of the most popular use cases of geofencing is in the retail industry. Retail stores can set up virtual fences around their physical locations and send targeted promotions to potential customers in the surrounding area. For example, a clothing store can send a discount coupon to customers who are in the vicinity of their store, enticing them to visit and make a purchase. Another use case is in the transportation industry, where businesses can use geofencing to track their vehicles and send real-time updates to their customers about delays or cancellations. This improves the overall customer experience and increases their satisfaction.


Geofencing is applicable in various scenarios and can be used for different purposes. It can be used to attract customers to a physical location, track employees’ movements, monitor assets, or provide location-based services. For instance, a delivery company can use geofencing to track their delivery trucks and ensure they are following their designated route. It can also be used for fleet management, helping businesses to optimize their delivery routes and reduce operational costs.


Geofencing is sometimes also referred to as location-based marketing, geotargeting, or geo-conquesting. While all these terms have similar meanings, they may have slight differences in their application. Location-based marketing is a broader term that encompasses all types of marketing strategies that target customers based on their location. Geotargeting, on the other hand, refers to the use of IP addresses or zip codes to target customers, while geo-conquesting specifically aims at attracting customers from competitors’ locations.

In conclusion, geofencing is a powerful marketing tool that allows businesses to target potential customers in a specific location, increasing their chances of conversion. It is widely used across various industries and has proven to be an effective method for engaging customers and driving sales. With the constant advancements in technology, geofencing is expected to continue evolving and become an even more essential component of the digital marketing landscape.

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