Geofencing refers to a location-based service through which a mobile application or a software makes use of technologies such as GPS, Wi-Fi, and RFID along with cellular data to activate a pre-set action event when a mobile device or a device with an RFID tag is in the vicinity of a virtual periphery set up surrounding a geographical location.
The technology is becoming an increasingly popular marketing strategy. Several companies are using their apps to incorporate geofencing in their apps to notify consumers of any discounts, sales, or any promotional activity being held in the outlets of the shops available in nearby areas when the consumer is present inside a “geofence.”
For the credit union sector, some of the some of the popular uses of geofencing so far include integration with popular social networking sites. With several varieties of shareable content such as location-based filters and stickers, credit unions can share promotions, community related data, news, and product offerings using geofencing. For core marketing purposes, geofencing can help credit unions to approach consumers and member with new promotions as they come closer to a specific branch. Examples include promotions about mortgage lending during popular seasons for buying homes.
Geofencing can also be used by credit unions to improve audience engagement. With sponsored social events such beach clean up, football game, paper shredding event, etc., credit unions can keep their promotions at the top of mind of the consumers and members. Many more applications could come into being as the technology advances further.