How to Get the Most Out of Geofencing for Mobile Apps? {4 Things You Must Know}

Imagine a digital fence drawn around your favorite coffee shop or the bustling city center. This virtual boundary is what we call a geofence, a powerful tool in modern marketing strategies. With geofencing, businesses can precisely target customers who step into specific locations on a map, opening the door to personalized in-app marketing experiences.

1. Let's Know The Meaning Of GeoFence:

Let's dive into the exciting world of geofencing, where virtual perimeters blend seamlessly with real-world locations to revolutionize how businesses engage with their customers. Picture this: you draw a digital fence around your store or a popular hangout spot on a map, and suddenly, you have the power to connect with customers as they step into that defined area.

Geofencing enables precise customer targeting based on physical locations, enabling you to deliver tailored messages and campaigns at the opportune moment and location.

2. Advantages Of GeoFencing For Apps:

So, why should you care about geofencing? Well, imagine the possibilities: from boosting sales and customer loyalty to launching targeted campaigns that resonate with individuals based on their past behavior. Geofencing lets you seize those golden moments when customers are nearby and ready to be wooed by your offerings.

One of the key advantages is boosting both your sales and customer loyalty, achieved by leveraging your CRM data effectively.

For instance, imagine you have customers who haven't visited your store in a while or haven't made a purchase recently. This presents an ideal opportunity to launch a win-back campaign. You could send them a warm invitation saying, "Get a 10% Discount on your favorite coffee." Additionally, you can remind them of any loyalty points they've accumulated or inform them about exciting new arrivals in your store tailored to their past preferences.

By tapping into your CRM data in this way, you can re-engage dormant customers and entice them back with personalized offers and updates, ultimately driving both sales and loyalty.

3. GeoFencing Doesn't Invade Customers' Privacy: 

Another intriguing application of geofencing is monitoring competitor locations. While you can't physically track competitors with beacons, setting up virtual perimeters around their stores is feasible. It's essential, however, to be transparent about this in your privacy policy, disclosing that geofencing extends beyond your own business locations to potentially include others. Though you may not explicitly name them as competitors, acknowledging the practice is crucial.

By leveraging geofences around competitors' stores, you gain insights into your customer base's behavior, identifying overlaps in patronage between your business and competitors. This data can inform strategic decisions, allowing you to adjust engagement tactics based on customer interactions with competitors. Additionally, incorporating this information into your customer database enables you to tailor future interactions effectively, potentially influencing customer loyalty and engagement strategies.

4. DigitalFactory's GeoFencing Doesn't Need Complex Technical Setup:

Geofencing, a technology combining GPS, cellular, and Wi-Fi data, has evolved significantly. Initially reliant on cellular data, it involved operators sending text alerts to users upon breaching predefined areas, often without their explicit consent.

However, modern applications offer more user-friendly geofencing options. Users can now opt-in for location services, receive push notifications, and acknowledge the value exchange involved. This shift towards application-level geofencing introduces active and passive modes.

Active geofencing, requiring user engagement with the app, utilizes high-accuracy GPS. Yet, this method drains battery life and is impractical for background use. Passive geofencing, on the other hand, operates seamlessly in the background, conserving power and not relying on GPS.

However, operating systems like iOS and Android struggle to handle geofencing effectively by default. Active geofencing, particularly with GPS usage, poses risks such as battery drain and potential app deletion due to poor performance.

Passive geofencing, crucial for engaging users in the background, presents significant opportunities for businesses to connect with customers, foster loyalty, and enhance relationships. Missing out on passive engagement means overlooking potential interactions with nearby customers, limiting business growth.

To leverage geofencing effectively, businesses must consider the balance between active and passive modes and ensure user opt-in. Geofencing offers a versatile tool for targeting notifications based on loyalty, transactions, or other segment data without requiring additional hardware deployment.

However, implementing geofencing isn't without challenges, as it may not always work seamlessly due to various technical issues. But, we are here to take up your challenging work. Contact us today to set up your Geofencing technology. 

So, whether you're a seasoned pro or just dipping your toes into the world of geofencing, there's always more to learn and explore. From best practices to technical know-how, the possibilities are endless. So go ahead, unleash the power of geofencing, and watch your business soar to new heights. And if you ever have questions or need guidance, we are just a call away.