Geofencing in Retail

If you are unfamiliar with the concept of geofencing, it is the practice of putting a “fence” around a retail store location. The fence is not an actual fence, but is a digital border around the store. This fence uses GPS technology to let the store know when people carrying smartphones are within its “fence.” Once the people are in the fence, then push notifications can be sent to their smartphones to promote the store.

There are a number of reasons why geofencing in retail can be very helpful to both shoppers and retailers. Here are some of those reasons.

1. It helps retailers market to an ideal demographic

People who are walking by a store are a lot more likely to buy something from the store than people who are miles away from it. This is because it is simply much more convenient to enter a store as you walk by than to get in your car and drive to a location, and then go shopping. So, geofencing in retail helps retailers to capitalize on their footraffic.

2. Many shoppers enjoy having their smartphones involved in their shopping experience

According to one source, 47 percent of shoppers in a survey declared that they would be more inclined to shop at a store that sent promotions to their phone when they walked by it. This is very significant. The reason is because it offers retailers a way to better cater to the needs and preferences of their customers. Companies who can appeal to their customers better can stand to benefit significantly.

3. It can enhance the relationship between a customer and a retail store

Brick and mortar retail stores have been facing a lot of competition from online retailers recently. If brick and mortar retail stores can connect with customers through their smartphones, then this can help to strengthen the relationship between them and their customers. This is good for business.


Geofencing in retail is a retail trend that is currently in its infancy. However, because of the strong use of smartphones, particularly in the younger generations, it is very likely that this trend will continue to grow. One day, the majority of retailers may even use geofencing.

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

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