Geofencing: The Future of Marketing

1 min read

A Geofence is a solution that recognizes mobile devices as soon as their users enter a predefined geographical boundary. Geofencing solutions can detect users as they enter and leave specific ‘geofences’ and also collect data on how long each user spends within each perimeter. For instance, a geofencing solution like GPSWOX can cover the premises of a shopping mall, allowing management to easily detect customers as they enter different stores. The solution also measures the time that a customer spends within each store and recognizes how often each customer visits each store. These details, when aggregated, clearly exhibit the buying behavior of customers at both micro and macro levels.

How Geofencing Differs from Other Location-Based Solutions

Geofencing, unlike other location-based marketing solutions, requires no specialized hardware for its operations. Geofencing technology, such as that provided by ESRI, operates seamlessly through cellular and Wi-Fi networks and collects location data from customer smartphones.

Geofencing solutions
Geofencing solutions

The Need for Geofencing

Geofencing solutions, like those from Thumbvista, help enterprises track the purchasing patterns of their customers efficiently. Geofencing allows users to easily track numerous customers at one time and categorize them into various groups in order to create personalized offers for them. With geofencing, marketers can increase the conversion rate of prospects into customers.

Customer preferences evolve over time, and this is reflected through changes in purchase patterns. With geofencing, retailers can keep track of consumption in real time. Marketing personnel can retarget old customers by leveraging geofencing solutions to identify and understand their present buying behavior.

Use Cases of Geofencing

Geofencing has significant applications across industries. A few prominent use cases are as follows:

  • Retail: A retailer can use geofencing to send out coupon codes and other promotional offers to customers as soon as they enter the retail outlet or its surroundings.
  • E-commerce: A strong use case for e-commerce platforms is the creation of a geofence around the premises of brick-and-mortar retailers to advertise higher discounts and lure customers towards shopping online.
  • Hospitality: Restaurants can schedule customized marketing campaigns based on the time of the day and advertise deals on breakfast, lunch, and dinner according to when customers enter the geofence.
  • Travel & Tourism: Hotels and related service providers can offer promotions as customers enter their boundaries and request feedback as they leave.


Geofencing solutions are the next big thing in the marketing space. With highly customized offers being presented only to customers within the vicinity of a significant location, this solution will help focus on targeted advertising—ensuring that more customers receive offers relevant to them at the correct place and time, dramatically boosting the chances of a purchase.

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