How Geofencing Can Help Your Merchant IT Clients Win Sales

By Christine Kern, contributing writer

An SMS geofencing campaign can be used in local marketing to attract customers to a brick-and-mortar store with close proximity tracking. For many years the idea of leveraging mobile and customer proximity to their favorite stores was tested, and according to a 2013 customer experience study by comScore, 47 percent of shoppers surveyed said they’d be more likely to shop with a retailer if they offered promotions to their smartphones when they’re nearby.

Using GPS or RFID, geofencing allows marketers to identify shoppers’ locations and tailor texts, emails, and even the ads accordingly. That means that special offers or announcements can be pushed directly to prospective customers when they are at or near a particular location.

In his article “Geofencing. How It Works And How Advertisers Will Use It,” speaker and Internet marketing trainer David McBee writes, “From an advertiser’s point of view, this new technology is exciting. Never has there been a way to target users who were visiting the competition, or target users who stepped foot in a place where advertisers knew their best customers frequented. And unless they found a way to capture their email addresses while they were there, advertisers didn’t have a way to show their ads to those people who had come to their location.”

Thumbvista is an example of a geofencing solution. It sends geotargeted mobile banner ads and text message triggered by a customer approaching a location. Retailers can geofence particular geographic areas — like special events, venues, or even their competitors.

AutoMotion is a dealership app vendor that provides geofencing services to dealer subscribers as a defensive tool to win customers away from competitors. Justin Brun, Acton Toyota director of marketing and e-commerce told Auto News, “It allows you in a targeted way to throw a little bit of bait to maybe attract [people] outside their comfort zone.”

Auto News reports although large merchants use geofencing, smaller merchants — and only 10 percent of auto dealers — are leveraging the technology. That suggests taking a closer look at the market for geofencing among specific niches could provide an edge they need, as well as sales for you.