Geofencing is a type of location-based marketing that targets people when they enter, leave, or dwell within a certain physical location.
Geofencing uses GPS technology to sequester an area of your choosing within a virtual fence. When you and your device move into—or out of—this “fenced” area, that action can trigger outreach from a given brand, leading you to receive a text or push notification (provided you’ve opted-in to a service like this).
A retail store might want to grab your attention when you drive into the area, or a vendor might want to capture you as you pass through a teeming concert festival venue. The purpose of geofencing is simple: to detect a user’s location, and to use that location to serve them relevant, valuable communications.
“When my team set up a geofence around the mall and triggered promotional messages when people entered the parking lot, our in-store engagement went up significantly.”