Geo-Fencing and MicroProximity 101: Revolutionizing Marketing Strategies

September 15, 2023

Mastering the basics of location-based marketing for optimal success

Marketing has transitioned—and continues to change by the day, week, month, and year. Traditional advertising methods are no longer the primary means of reaching potential customers. Instead, brands are turning to innovative strategies that leverage the power of technology to engage with their target audience.

In this blog, we’ll dive deep into Geo Fencing and MicroProximity, exploring what they are, how they work, and their most significant impact on modern marketing.

Understanding Geo Fencing and MicroProximity

Before diving into the nitty-gritty details, let’s start with the basics: What are Geo Fencing and MicroProximity?

Geo Fencing is a location-based marketing technique that uses GPS technology to create a virtual boundary around a specific geographic area. This boundary, or “fence,” can be customized to encompass any physical location, such as a retail store, event venue, or city block. When a user’s device comes into proximity, it can trigger an action, such as sending notifications, delivering special offers, or providing relevant content.

How Does Geo Fencing Work?

Geo Fencing relies on the GPS capabilities of mobile devices, such as smartphones and tablets, to determine a user’s location. Here’s a breakdown of how it works:

1. Creation of the Geo Fence

A business or marketer defines the geographic area that they want to target. For example, the geographic area could be the vicinity of their store, a competitor’s location, or an event venue.

2. User’s Device Detection

When a user with a mobile device enters or exits the defined geographic area, their device’s GPS detects this change in location.

3. Push Notifications or Messages

Once the location change is detected, the system can deliver relevant messages or notifications to the user’s device. These messages could include advertisements, promotions, event announcements, or marketing content.

4. User Engagement

Users who receive these messages can then engage with the content, visit a nearby store, redeem a coupon or promotion code, or take any other desired action the brand wants.

Three Benefits of Geo Fencing

1. Targeted Advertising

Geo Fencing allows businesses to precisely target users based on their physical location, ensuring marketing messages are delivered to the most relevant and receptive audience.

2. Increased Foot Traffic

By sending timely and location-specific offers, businesses can drive more foot traffic to their stores, increasing the chances of conversions.

3. Real-time Engagement

Geo Fencing enables real-time engagement with users when they are near a business, making it highly effective for time-sensitive promotions.

MicroProximity takes Geo Fencing to the next level using exact, short-range technologies like Bluetooth Low Energy (BLE) beacons. These beacons can detect mobile devices within a few meters of their location. When a user’s device comes into proximity with a beacon, it can trigger various actions, such as sending notifications, delivering special offers, or relevant content. When used correctly, businesses can reap the benefits of MicroProximity campaigns.

Three Ways MicroProximity Works

1. Extreme Precision

MicroProximity is exact, targeting customers within a tiny and defined physical space, typically a few meters or less. It uses Bluetooth Low Energy (BLE) beacons or Near Field Communication (NFC) tags.

2. Real-time Engagement

Unlike Geo Fencing, MicroProximity allows for real-time customer engagement near a specific point of interest, such as a product display, a specific store aisle, or a museum exhibit.

3. Highly Targeted

This approach enables businesses to deliver hyper-targeted content, promotions, or information to customers based on their immediate surroundings. For example, a store can send product recommendations or discounts to a customer’s smartphone when standing before a particular product.

The key difference between MicroProximity and Geo Fencing is their level of precision and proximity. Geo Fencing sets up a virtual fence boundary to engage with a broader audience in a defined area. In contrast, MicroProximity leverages precise, real-time location data to engage with customers in a closer setting—often indoors. Both techniques have advantages and can be complementary to create effective location-based marketing campaigns.

Use cases and applications for Geo Fencing and MicroProximity

Both Geo Fencing and MicroProximity offer a wide range of applications across various industries:

1. Retail

Retailers can send discounts and promotions to shoppers when they enter the store, guide them to specific products, and gather data on shopping patterns.

2. Events

Event organizers can send event schedules, maps, and special offers to attendees’ devices, enhancing their overall experience.

3. Hospitality

Hotels and restaurants can use MicroProximity to greet guests, offer menus, and provide information about amenities.

4. Healthcare

Hospitals and clinics can streamline patient check-in processes, send appointment reminders, and provide location-based information within their facilities.

Your vision, our expertise

While Geo Fencing and MicroProximity offer several benefits, they can also raise privacy concerns. Businesses must obtain user consent and adhere to privacy regulations when implementing these technologies into their marketing strategy. Your target audience should be able to opt in or out of location-based marketing campaigns.

At Techint Labs, we specialize in these cutting-edge technologies and stay on top of the latest trends in advertising and marketing. Our team can help handle the technical complexities so you can focus on working on your business. If you want to discover the potential for enhanced customer engagement and precise targeting and have a competitive edge in the market, contact us today.

Or if you want to learn how to reach specific demographics within a geofence location, check out Geofencing 102: Device ID.

Copyright © 2022 · Techint Labs | Privacy Policy