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Importance of Geo-fencing
The smartphone has proved to be a bane of the retail industry, because the
customers are now browsing various physical stores prior to going online on
their phones for purchasing the same goods at the best price, which is also
known as showrooming. But these stores are also out to fighting back this
trend by leveraging smartphones to lure customers into their showrooms and
stores and make them make purchases.
Geo-fencing are digital boundaries that are facilitated in location-based
marketing and have been proven to be successful if used wisely, without loud
marketing. This software allows the merchants and marketers to offer market
deals directly to their customers when they enter within the defined
geo-fence.

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How Retail Industry is Experimenting with Geo-fencing
Using the new technology called geo-fencing, small stores are now shooting
text messages to nearby available customers and involving them at a more
personal level. Here is how the retail industry is experimenting with
geo-fencing system available in smartphones!
Geo-fencing application runs store's app automatically whenever any user is
passing by a store branch, with an already programmed promotion or ad
campaign. This also enables the customers to navigate around a store to
search out specific products on the shelves. Customers can also enlist the
entire shopping articles, or the items required for any recipe, and the app
can guide the customer around the store to buy all the items required
quickly.

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How Retail Industry is Benefiting

To have a better idea how this application can help retailers and customers,
let’s understand by an example - as you go closer to a particular product,
you'll start receiving offers related to the products on your smartphone.
For example, if you are close to the cereal corners, the Corn Flakes can
also be on your screen, and a sale on marinara sauce can also be visible
when you're passing by the pasta store. In this way, it is also cross
selling and up-selling to the customers.

Which Companies are Using this Technology?

Big corporate like L’Oreal, North Facem Kmart, Starbucks are some of the
companies giving it a whirl. Apart from these companies, smartphone
manufacturers and Apple are also adding this technology as feature to their
new handsets to notify users.

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Future Trend of Geofencing
It has been predicted that this system is going to become a huge marketing
tool in the next few years.
The causes for this predicted growth include:
Smartphone usage is ubiquitous

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Geo-fencing technology has reached advanced stage and has become affordable
Location-based ad campaigns has become accurate and sophisticated
Consumers are displaying acceptance to geo-targeted advertising
For retailer industry, geo-fencing and location-driven marketing is going to
become more effective and trustworthy to reaching out new consumers and
incentivizi     ng them to buy now.

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Synopsis
This shift to location-based marketing is a perfect example of how mobile
computing have entered into our lives and how it has influenced the global
economy and market that also include the way businesses run their

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