How Geofencing Benefits Businesses and Consumers

Geofencing is a fairly in-depth concept for many but mostly focuses on the power of invisible barriers for business.

Sounds interesting right? 

“Geofences” are online restrictions that limit consumers to purchasing from specific storefronts in their area.

This add-on can be beneficial to businesses and consumers alike.

Let’s break down the benefits of geofencing your business!

Consumer Benefits: 

Any discussion of data restriction will initially sound concerning to consumers. We are here today to ease any anxieties about Geofencing and explain how it is truly beneficial to the buyer.

To start, here is one example of how a lack of geofencing can negatively impact consumers.

Have you ever looked up a store location for ‘Starbucks’ just to see a bunch of options miles away from your current location?

This has happened to me. Many times, I have personally known a specific location was nearby and I just needed directions. Instead of taking me to the nearby location in-mind, the store locator rerouted me to a location miles away.

This reason alone is why we implemented Geofencing for our clients. 

With Geofencing, customers avoid hassling and frustrating commutes to access their goods.

Here is one example of how implemented Geofencing can benefit the consumer:

A consumer looks up a store location for a nearby Kroger. If Kroger was our client, the ONLY location available would be the closet locations to the consumer.

Additionally, if a customer wants to shop in another Zip-Code, they can easily update the system to provide locations in different areas.

This simple integration keeps consumers from driving further than needed.
 

Avoid unnecessary drives and frustrating store locator searches with automatic geofencing.

Franchising Benefits 

As we have discussed previously, all franchisees are legally entitled to their own territories for their specific storefronts.

Territories protect franchisors and franchisees from building multiple storefronts in the same location, thereby cannibalizing each store’s market share and losing revenue.

Franchisees put a lot of time, energy, and effort into selecting a specific territory. They chose their locations based-on several demographics, including population density and medium incomes.

That means that franchisees are very protective over their territories. They want to make sure all sales within their zip code are being sent to their storefront.

So how can geofencing protect these businesses?

Geofencing protects franchisors and franchisees alike, because consumers will only be shown the storefront within their region.

For example, if I live in zip code 80881, I will only be shown the stores available in that region. Additionally, If I want to shop in a different location for whatever reason, I can easily transfer that zip code to view another storefront. 

This protects franchisees while allowing customers to maintain their buying power.
 

This means that franchisees can Geofence their territory by zip code to ensure sales are being streamlined to their storefront.

Integrated geofencing ensures three things:

1. Buyers are conveniently shown storefronts within their Zip-Code’s region. 
2. Franchisees are ensured their territory is protected 
3. Franchisors keep territories strategically spread out to reduce competition with itself. 

Never again will customers be sent miles away to another location.