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Geofencing Apps: A Newfangled Competitive Business Strategy

Geofencing Apps: A Newfangled Competitive Business Strategy Competition in the digital arena is increasing with every passing second. With millions of businesses trying to leverage the power of the mobile platform, mobile marketing is moving towards adoption of contextual targeting. Geofencing apps that use location-based marketing tactics are growing popular with businesses as they use location data to track customers and show them relevant notifications at a time and place where they matter the most.

Geofencing: A Rewarding Business Opportunity

Geofencing is a unique technology that helps marketers in collecting information and engaging users with relevant information as they visit a particular geographical area. A geofence is just like a virtual fence that is created around a particular geographical area, such as building premises, geographical location or a complex.
Geofencing Apps stats

(Statistics credits: SlideShare)

Geofencing & Business ROI

Businesses worldwide are seeking innovative ways to market their offerings to the customers. In a competitive era, businesses require relevant customer data such as their location for effective marketing. Moreover, as stated above, 80% of the population using location-based services desire to get location-based alerts. Businesses can leverage this opportunity to improve the ROI of their marketing campaigns by:

  • Increasing in-store footfalls by flashing promotional offers as they pass their retail store
  • Capturing customer feedback instantly and openly communicate with customers
  • Beating business competitors by geo-fencing locations around competitor premises and provide incentives to attract customers towards your business
  • Increasing brand loyalty by offering incentives/rewards and pulling customers towards your business offerings

Industry-specific Geofencing App Use Cases

Retail industry

Geofencing-powered campaigns are an ideal marketing tactic for businesses in the retail industry. Using geofencing, retailers can attract more shoppers and increase revenues by developing geofencing apps. Different kinds of retailers can utilize the potential of geofencing apps and improve sales figures, easily.

  • Promotion Campaigns: App users hanging out near a store can be targeted by giving special offers, rewards to pull him towards a store.

  • Automotive Retail: Vehicle owners can be prompted with a service reminder and a personalized promotional offer whenever they are near an automobile service point.

  • Mobile Phone Retail: Mobile phone retailers can create a geo fence around their stores to remind everyone who is nearby about their terminating contracts and give them an option to visit the store for renewing the contract.

Hospitality Industry

The hospitality industry is woven around creating a memorable experience and geofencing can help businesses in leveling up their customer experience and service promise. Geofences can be set up around the hotel premises to improve check-in process, provide personalized tips and assist the users.

  • Speeding up Check-in’s: Travelers can be welcomed with a welcome message and simultaneously, the front desk can be informed about their arrival so that they can keep the room keys ready for them.

  • Automating Room-service: Room service and maintenance staff can be informed as soon as the guest leaves, so that they can automatically go ahead and clean the rooms without being prompted.

  • Business Promotion: Geofences can be set up around airports, tourist attractions or business convention centers so that as soon as a traveler exits a geofence, they are notified about places to stay, eat or relax.

F&B Industry

Just like retail stores, restaurants can geo-fence their territories and send promotional messages to individuals whenever they are nearby their premises. There are a number of ways restaurants and cafés can use geo-fencing such as:

  • Promotional Notifications: Restaurants can connect their CRM systems to geo-fencing apps to create smart notifications and target users, effectively.

  • Feedback: Users can be prompted to visit the restaurant, ask feedback from returning customers and prompt them to order the previously-ordered meals.

Aviation Industry

Geofencing can be used by airlines to make the traveling experience much better by providing context-based information such as ticket information at arrival/departure gates at airports. Users can be welcomed with their boarding pass link by setting up geofences on the airport.

  • Information sharing: Travelers can be provided with a walkthrough of the airport to simplify their journey.

  • Cross-selling & Promotions: Airlines can indulge in cross-selling by collaborating with taxi-hailing apps or local transporters. They can set up geo-fences and on exit by a traveler prompt them with information about local transportation options.

Creating a geofencing app can promise great benefits to a business. Being a location-based technology, businesses can create location-specific campaigns that will ensure better engagement and returns from marketing campaigns. Intuz has helped several businesses from different industry domains in creating customized apps that help them to target, pull and interact with customers and improve their sales prospects amid an increasingly competitive business environment.

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