By now we have all heard the term Geo-Fencing and have possibly benefitted in some way from this technology.  At a mall, you may have received a coupon via push notification on your smartphone when you walked by your favorite store.  Or imagine, driving past a popular local establishment and receiving a notification about a special event for that day.  

Geo-fencing is a location-based service that allows businesses to send messages to smartphone users who enter a defined geographic point.  Once you enter a specific address into the system it creates a virtual “fence” around that point.  Then you can create unique messages catered to the needs of the business or the consumers. When you know where customers are and how they behave, you can not only customize offers but also give them rewards and a personalized experience.

Below are some areas that outline how dealers can use this technology to attract, sell and retain customers:

1. Engage your shoppers. Some dealers send promotions to customers' smartphones when they enter their store. The message can be ‘Welcome to Paragon Honda, we have complementary beverages during your visit with us.  Please see Susan at the front desk if you need assistance.’ Or as a customer drives by your dealership, they receive a notification that says: ‘Stop in today and receive a free car wash’. 

Deals can be hyper-local. Knowing that customers are nearby lets dealers tailor offers based on local events or holidays. For example, for the upcoming Labor Day season, a dealer can deploy targeted ads for ‘Labor Day Special - Free Oil change’ or ‘Labor Day Special – Free Fall/Winter inspection’ in the days leading up to Labor Day. 

Internal Messaging.  If you have all of your employees download your app (which they should), you can create a specific message with an announcement.  An example can be ‘Please remember that the Special Lease Program ends today’.

2. Competitive Edge. By sending a targeted offer to a customer in a parking lot, you may be able to steer them away from competitors. If a customer or prospect drives into a local Express Lube Shop or a nearby competitive dealer, they can receive a notification with customer rewards, such as gift cards or coupons from your dealership. 

3. Local Businesses. Dealers can also work with businesses in their local area for cross promotion.  For example, if you have a local gas station that you are familiar with, once your app users enter the gas station, they receive a notification from your dealership that says ‘Complimentary fill-up on us with your next oil change.  Stop by today for details.’  Or if it’s a local restaurant ‘Appetizers are on us (ABC Motors). Show this coupon to your server to redeem’.

Parameters. If you are worried about abusing this technology and upsetting your customers with too many messages, there are measures in place to prevent this from happening.  It is possible to create limits to the frequency of a particular message.  For example, if your dealer’s address is one of your defined geographic coordinates, the ‘Welcome to ABC Motors’ message can be set to no limit.  This would mean that every time that particular customer walks into the dealer they receive the same welcome message.  Or if it’s a competitor message, you may want to limit that to once a month.  If it’s the one for entering the parking lot of a local business such as a gas station or restaurant, you can limit that to once every 6 months. 

Always keep in mind that Push Notification technology and Location Services is an opt-in only service.  Your customers must agree to accept these services once they download your app.  They can also choose to opt-out of these services.  By keeping the above parameters in mind and not abusing this technology, you can maintain a competitive edge, increase business and amaze your customers with unique and timely messages.