Geofencing is a relatively new technology. However, there are already businesses using it to target their competitor’s customers. One of the most well-known examples is from the fast-food chain Sonic. Sonic has been using geofencing to target customers of their competitors, such as McDonald’s and Burger King. When customers of those restaurants enter Sonic’s geofenced area, they receive a targeted ad for a discount on their next meal.
Target Marketing 101
Let’s start off by defining target marketing. Target marketing is the process of identifying and marketing to an audience that demonstrates a strong interest in your business’s product or service. A strong interest is clearly demonstrated when someone visits a competitor’s location. The places people go is the strongest indicator of their buying intent.
An example we often use is car dealerships. If someone is physically visiting a car dealership, they are actively looking to purchase a vehicle. This is target marketing 101.