21 Nov 2023

Why geofencing will skyrocket your promotional campaigns

Talon.One Writer

Content Team

why geofencing will skyrocket your promotional campaigns

6 minutes to read

As consumer demands for personalized and local experiences grow, location marketing is emerging as a highly competitive space. Brands that use cutting-edge location technology to support their marketing and promotions will deliver the best user experience and stay ahead of the game.

No two customer journeys are alike and marketers need to be ahead of their game when leveraging location-based data and customer behaviour to deliver the best user experience and acquire profitable consumers.

With Geofencing, businesses can run customized advertising campaigns based on geographical identification positioning (GPS) to potential customers within a specific geographic radius that gives marketers the ability to set unique marketing boundaries.

This offers your brand the flexibility to send your potential customers targeted messages and promotion campaigns. The goal is to influence consumers decision to purchase your products in a fast and frictionless manner.

How can Geofencing be used with an innovative twist in your promotion marketing campaigns?

Although Geofencing has been around for a while, combined with new technologies and with the right strategies, this tactic can be a great asset for your marketing plans, especially in a fiercely competitive landscape.

With Geofencing, your business can benefit from:

  • Increase in sales

  • Revenue boosting

  • Customer loyalty.

Focus on a human-centric Approach

Focusing on a human-centric approach is crucial when attracting and engaging your customers. As consumer lifestyles become more based around instant gratification and each user group has different needs, marketers need to tailor their marketing messages, promotion ads, and content in such a manner that it resonates with particular user groups and can transform the brand into a useful and comfortable purchase resource for customers.

Proximity marketing combined with “smart” mobile marketing and promotion marketing can substantially drive user engagement and increase brand loyalty. That way, the brand becomes a partner and a problem solver for the user rather than a marketing tool.

Customers have become very selective and are open to “smart” applications that understand their behaviour, anticipate their needs and provide useful solutions that improve their lives. Therefore, marketers need to be a step ahead of the point-in-time pin drop location.


Source: Salesforce

Select a virtual pre-defined fence within a specific location and deliver customized promotion ads to customers who step into your fence. Create your promotion campaigns that are set for a limited time frame, and target specific discounts for specific products or services depending on the business you are running and on the sales goals you have.

Offer coupons for particular items or categories that should be delivered to the right customer segments at the right time to fully optimize your promotion costs.

If you own a coffee shop next to a bookstore, add a 5 EUR discount to your customers within your selected virtual fence for that bookstore you might want to partner up with during the winter season, for instance.

Tip 1: Mix Geofencing with Geoconquesting to target customers who visit rival stores

Geoconquesting is a fairly new marketing trend in the mobile advertising field that employs location-based data to deliver customized promotional ads when your potential customers are physically near competitor stores.

Example: Walmart delivers, for instance, an app with a store mode which sends promotion ads when a potential customer is near a Walmart store. With this location-based promotion strategy, customers are encouraged to buy more from the Walmart store in that area. (Martech Advisor)

That way, you are not only creating brand awareness, but you enhance customer purchases with exciting deals, and you beat potential competitors within the selected virtual radius and even beyond that pin drop.


Source: Salesforce

With Talon.One, you can combine Geofencing tactics with your promotions to enrich your campaigns and exceed your marketing goals.

Tip 2: Keep the virtual radius quite small

That would give you the possibility to create and do A/B testing on various customized promotion campaigns within different locations. The general rule is a four-to-five minute travel radius; your promotion ads would be the most successful if your customers walk or travel from point A to point B within a four-to-five minute transport distance.

Example 1: Select a pre-defined virtual radius and deliver sharing rewards in the form of coupons or discounts within that radius for each customer who recommends your restaurant or hotel on social media channels.

Consumers have become comfortable sharing their location data in exchange for marketing messages with promotions that resonate with their shopping and dining rituals, and their life on the move, in general.

Example 2: If you own a restaurant, build a discount program, and set 20% off for seasonal dishes during lunch within a pre-defined selected radius after a careful customer behaviour analysis.

Talon.One can easily help you implement a personalized discount campaign.
Make sure your Call-to-Action (CTA) is clear and encourages immediate action so that you get the most out of your location-based promotion campaigns.

Identify the right timing for customer engagement

Make sure you understand your customer demographics, who your local customers actually are, and use CRM data with location events to trigger the right message at the right time. This is essential to be sure the promotions you use are strategic to your marketing goals, and will bring the results your business is aiming at.


Source: Salesforce

Tip 3: Leverage hyper contextual targeting

Deliver meaningful customized promotion campaigns using location in combination with past locations visited, geography specific events, weather, intent search history to deliver your customers relevant promotion ads that serves their particular lifestyle. Be sure your brand is present within a specific location that resonates with your target audience.

Example: Select a virtual fence within specific locations and implement product bundling campaigns on particular sport apparel articles in resonance with each season.

Try product bundling for articles recommended for fall and winter, or coupon discounts for sports articles in summer. You can compare whether one customized promotion campaign is more successful than the other, and that way, you can improve your marketing promotion strategy accordingly.

Talon.One can advise you on how you can implement customized promotional campaigns for your business.

Location data gives you an excellent insight to your customers time and context. You can set patterns on where they live and work, what and when they are shopping, what they do in their free time, when they travel or go to a concert. It is essential to know how to use location-based data to target the right audience with discount or customized loyalty promotion campaigns.

In this article, you can read more insights on the relevance of targeted campaigns and how you they can leverage your business.

Tip 4: Use Geofencing and consider Geoexclusion at the same time

Marketers should consider using Geofencing in combination with Geoexclusion. Leverage location-based data and customer behaviour to deliver promotion campaigns that evade locations where the target audience doesn't suit your product or service.

Turn your marketing promotional campaigns into problem solving resources

First, strategic location-based and customized promotion campaigns can boost the awareness of your brand, and engage customers to stay loyal to your product or service.

Second, marketers must consider launching customized promotion campaigns that turn into problem solving resources rather than into pure advertising and sales purposes. This requires speed in action. To be successful, brands must deliver solutions and experiences that are fast and frictionless.

Example: You own a ride-sharing app in either one location or in various locations. If one subway line is under construction for a limited time frame, you can create a virtual fence for that subway line area and deliver a 20% discount customized promotion campaign for all users who would use your ride-sharing app.

That way, you provide a service that goes beyond monetary incentives, as you solve a stringent issue that affects the daily routine of your customers. You also boost awareness for your brand, and engage new customers who, with continuous targeted promotion campaigns, can become loyal customers, and eventually VIP customers.

In the long run, you build a sustainable brand that will be ahead of competitors through strategies that focus on problem solving rather than enhancing monetary incentives.

This is also a great asset for setting simple and efficient targeted promotion campaigns that solve an issue for your customers without having to implement complicated campaigns that may take in fact longer to be successful, as they do not respond to your users needs or purchase habits in that moment in time.

The idea is to be constantly aware of their needs and react with speed to optimize relevance for the consumer and lifetime value for your brand. Automation strategies and machine learning are tactics worthy to invest in to predict user behaviours that aren't simple to anticipate manually.


Geofencing used with an innovative and efficient twist in combination with other strategic and contextual marketing campaigns can help your brand deliver meaningful services and products to your potential customers, and be on top of the game in your business industry.

Want to use Geofencing for strategic marketing promotion campaigns?

Get in touch with us and we will guide you through the steps on how you can leverage your location and customer data to implement customized promotion campaigns using a flexible API solution.

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Isabelle Watson

Loyalty & promotion expert at Talon.One

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