Which method best describes how geofencing is applied in retail?

Geofencing in retail utilizes location-based technology to create a virtual boundary around a specific geographic area. Once a customer enters this designated area, businesses can engage them through various marketing strategies. The best example of this application is through localized push notifications, which directly target customers on their mobile devices. When a shopper enters a geofenced zone, retailers can send tailored messages about promotions, special offers, or reminders about items they might be interested in based on their previous shopping behavior.

This method enhances customer engagement by delivering relevant information at the right time and place, leading to increased foot traffic and potentially higher sales. This targeted approach utilizes real-time data to maximize the impact of marketing efforts, making it a powerful tool in the retail landscape.