Marketing Strategies

Geofencing & Location-Based SMS Marketing: The Next Big Thing in Targeted Marketing

  • July 24, 2025
  • 1 week ago
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Consumers now demand the most relevant information in an era of personalization. One powerful way to provide personalized experiences is through location-based marketing, such as geofencing and SMS marketing.

Geofencing technology with SMS marketing lets businesses create a virtual fence around their specific location to make instant, direct contact with customers. These tools can be utilized together, to enable businesses to send highly targeted SMS messages to customers based on an exact location, which can cause a rise in-store, foot traffic, engagement, and sales.

Today, we look at geofencing and SMS marketing, but not the dated, played out potential of location-based sales that obviously has that maturing department store chain interested; we’re talking about location-based sales as a thriving, vibrant channel that has established and nascent brick-and-mortar businesses alike excited for good reason. Read about why everyone seems to be into this fusion.

What Is Geofencing, and How Does It Work?

Geofencing technology draws a virtual perimeter around a particular location (for example, a store, a mall, or a neighborhood) using GPS, RFID, or Wi-Fi. When a consumer enters that zone, similar to GPS, an action can prompt on a smartphone, such as a notification, or even an offer, or a coupon.

And when you mesh it with SMS marketing, you’re able to send messages to your customers’ phones as they enter a designated geofenced area. That way, you're guaranteed they're on-site before giving them a call.

Here is the process:

Company creates a virtual boundary around or over a location (i.e. retail store, restaurant, event). A customer walks into a geofence, and his or her phone registers the location. The business sends an SMS to the customer containing a special offer, reminder, or reward offered by a merchant at the customer's physical location. Sending these message out when the customer is near or in the store maximizes the changes of a purchase, inviting them into the store, increasing loyalty and make the experience as wordless as possible for the customer.

Deploy Location-Specific Deals and Notifications

For chains of stores or companies that have several locations (multi-location enterprises or observably regional retail chains), geofencing and SMS marketing allow you to send your promotions to your customers not by city or neighbourhood, but even by one particular street with precise coordinates. If, for example, you own a chain of coffee shops that has many locations and you want to show special offers to customers depending on the store nearest to them.

Example:

"Hey [Customer Name], guess what, there is a one-of-a-kind espresso available at the [Store Location] today? Drop by today for 10% off your next coffee!

This helps to make the offer more personal and valuable to the customers that are receiving them, as they can be customized based on their location.

Promote Return Visits and Retention

Geofencing can be a powerful tool not only for driving the initial foot traffic, but also for promoting customer loyalty. You can use geofencing to give out loyalty benefits or discounts each time someone comes to your store.

Example:

"Thank you as always, [Customer Name]! Get a free dessert at [Store Name] today — just show this message at the register!

Appreciation seems to be the point of it, and an incentive to do as customers are encouraged. Or not do, as the case may be.

Specific Outreach For Events or Locations

In addition event based marketing also work nicely with geofencing and SMS. If you have an upcoming event, sale, or store product launch at a location, you can leverage the power of geofencing to push event invites and reminders to people in close proximity. This is great for local businesses or pop-up shops who want to maximize foot traffic during temporary promotions.

Geofencing Revs Up Customer Engagement

Geofencing geofencing technology marketing customer experiences The desire for consumers to receive a discount or promotion on their mobile device while shopping has become as common and expected as the sun rising each morning. For service-oriented companies, like car showrooms and beauty salons, sending location-based SMS reminders when clients are at a close proximity from the shop can also increase engagement phenomenally.

For example:

"Hello, [Customer Name]! To make an appointment at [Location] is but step of a short distance. We can't wait to see you!"

Using geofenced reminders, companies can cut down on customer communication like appointment reminders, as well as helping individuals stay present in whatever they are doing. This does not only draw in foot traffic, but it develops a satisfied customer base waiting for their appointment. ### SMS Marketing Integration

Make sure your geofencing integrates well le your SMS marketing platform (like texttorrent.com or other SMS providers). This enables automatic SMS notifications to be generated each time a customer crosses into or out of the geofenced region.

Targeted Campaign Creation

Now, create tailored SMS campaigns to trigger as soon as a customer is in the geofencing. These should be bespoke campaigns and be strong calls-to-action that incentivise recipients to act now.

Performance Tracking and Analysis

Track foot traffic, conversion rates, customer engagement and other relevant KPIs after implementing geofencing and SMS campaigns to determine its success. Utilise this information to optimise your campaigns and achieve better performance