Geo-fencing: Using mobile devices for "proximity marketing"

A digital fence is drawn around a retail location. (For the sake of clarity, let’s say the circle reaches for a half-mile radius in every direction from where the store is located.) When someone comes close enough to the store that they step inside this “invisible fence,” a message is delivered to their mobile phone, inviting them to visit the store while they are in the area. Perhaps the message contains a coupon, or introduces the new spring line. But the additional value behind this tactic is that it was delivered when the consumer was in a position to use it.
Read more on the matter in yesterday’s New York Times.

Implications: I’ve long held that a sound marketing campaign addresses three fundamental elements: Motive, means and opportunity. The consumer must have a want or need for the item being sold (motive), they must have the money to spend (means), and the consumer must be in a position to commit the purchase (opportunity). This application of mobile marketing clearly creates opportunity for both the consumer and the marketer.

Of course, there’s a catch: Customers must opt-in to be approached in this way. In other words, they must invite you to send marketing messages to them. Is your store/product/service that important to them? Are your offers compelling enough that I will invite you to invite me in?

This posting might seem to be more about marketing and mobile technology than it is about consumer trends. But the issue also demonstrates the “consensual nature” of digital marketing. The consumer can use their devices to welcome you into their lives… or they can use those tools to shut you out.

Mike Anderson