Beacons or Geo Fencing

Beacons or Geo Fencing

Beacons or Geo Fencing

Location-based mobile marketing provides endless opportunities to engage with consumers in the right time at the right place.

Through the use of innovative mobile technology such as Beacons and Geo Fencing, companies can now communicate with their customers through timely, relevant messaging, while also gathering valuable data on user demographics and behaviour.

But what is the exact difference between these two location-based technologies and how can they improve the customer experience?

To explain the technical background, this technology is made possible through the extension of Location Services on a customer’s mobile device. In the case of Beacons, a Bluetooth Low Energy signal is also required as this determines the customer’s proximity to a particular Beacon. In both cases, the app users you will reach are those who have agreed to receive notifications and allow location services for the app in question.

Let’s take a look at Beacons first. This is a piece of hardware that can be placed in a particular location – it’s function is to simply transmit a signal. The app on a customer’s smartphone then registers this signal and relays the data back to the mobile marketing provider. The provider may then automatically send a personalised push notification or in-app message to the customer. This is automated location-based mobile marketing.

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The key here is to ensure the communication is contextually relevant. If the content isn’t relevant to the user, it is likely to get pushed aside.

In the case of a sports retail outlet, for example, the notification should be based on a customer’s in-app preferences, location and previous shopping habits. The shopper, in question, may have previously placed a certain brand of running shoes in their shopping cart within the app but then subsequently exited the sales funnel without purchase.

Using the Beacons, the shop can then send a personalised notification to the user when in-store and advise them of an exclusive promotion on this particular product.


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