Capterra Glossary
Geofencing
Geofencing is a location-based service that uses a global positioning system (GPS), Wi-Fi, cellular data, or radio frequency identification (RFID) to establish a virtual boundary around a real-life geographic location. When a userʻs mobile device or RFID tag enters the boundaries of a geofence, a marketing action such as a text, social media advertisement, or app notification is sent to their device. Businesses use geofencing to keep track of company equipment, monitor the location of field employees, and present customers with targeted advertisements.
What Small and Midsize Businesses Need to Know About Geofencing
Small and midsize businesses with brick and mortar storefronts often use geofencing to send targeted ads to potential customers in their area. For instance, say a person goes to a dentist appointment near a local coffee shop. The coffee shop can use geofencing to send texts or social media advertisements to their mobile device. This marketing tactic entices the person to buy something from the coffee shop, even if they werenʻt planning to initially.