Corporations Use Geofencing to Personalize Shopping Experience

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Craig Smith  |  Founder & CEO

With the continued popularity of mobile usage, corporations are discovering different ways to appeal to multi-channel advertising. Companies needed to figure out a way where they could reach out to customers when it was most convenient and relevant to them. This is where ‘geofencing’ comes in.

In the article “RetailMeNot deploys geofencing at 180 colleges for back-to-school blitz“, we see that RetailMeNot has been working with a select amount of retailers to spread the word about deals and discounts across 180 of the top prospected schools. The way it works is by having a beacon located in the store that knows if a RetailMeNot App user is near one of the select stores. Once the beacon is notified, it will shoot out a ping that lets the customer know of a sale within the store.

One of the issues that companies were having with this new technique was that customers would receive too many notifications, which could come off as annoying. This could happen in a place similar to a mall where an individual will walk past multiple stores and be inundated by deals. To combat this, RetailMeNot decided to put a policy in place where a customer has to be in a store at least two minutes before they receive a message about a deal or sale. They believe that this strategy will give a more personalized approach to notifications and keep it more relevant for the buyer.

In order to stay competitive, more companies will need to provide a level of personalization, similar to RetailMeNot’s strategy. Once they are able to appeal to customers in a way that is nonthreatening and helpful, they will surpass their competition and advance in the world of multi-channel advertising.

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