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What is Geofencing and How Does it Work?

  • By Abiram Kishan
  • September 9, 2020

In this modern era, every firm has to explore advancements in its strategy to survive and flourish. The success of the company not only depends on the innovation of new products; it also includes the marketing strategy that boosts the sale of the products to potential customers as businesses are moving from print to completely digital. The development of technology brings has influenced many new ways of marketing, and Geofencing technology leverages the thought. It is a GIS innovation that focuses on business development in today’s world. Let’s go further to discuss more Geofencing and unleash all the benefits it can offer to your business. 

What is Geofencing?

Geofence simple means a virtual diameter in a geographically defined area. It is a technology that constitutes a virtual distance around a defined point in a real-world geographical area. It is a technique used to attract the customers bypassing the ads through their smartphones relevant to them when they enter the virtual boundary of the particular business location.


How Geofencing works?

Geofencing works when the user enters the mainly defined boundary. Here the location of interest is defined by latitude and longitude, and the limit is determined by the optimal radius buffered from this location of interest. For activating geofencing, the application must access the user’s location. After explaining our region for the site’s point, the potential customers can now be identified through their mobile’s GPS.

The entry and exit points have to be defined. In addition to this location specified feature, we also need to bring actions to aim for the potential customer. You can acquire the customer data based on their visits, age, gender, etc. to target them. 

Advantages of Geofencing

Geofencing can be used as an ad portal. There is no need for the placards and billboards to be placed everywhere in the people’s pathways. You can obtain attention from the people just sending notifications via their smartphones when entering the geofencing boundary, which makes it cost-efficient and stand unique among your competitors.

It can be used to target potential customers. Once the primary data is collected from the people, we can send the relevant product ads based on their age, gender, and other activities.

This technology not only helps in taking products to the people but also directs enterprises to make smart data-driven decisions. It can be used in large industries to manage employees and gives ideas to allocate and assign them appropriately.

Geofencing drives tracking time more efficiently and more accurately. It helps to identify if a product is moved without knowledge of the concerned store. Geofencing also helps in piling up the entry and exit data of the employees online.

It also helps in increasing product impressions and sales by fetching more customer views. It also brings the sight of the people who are stuck in traffic. So you can see the difference in the figure of our customers’ perspectives.

Disadvantages of Geofencing

Every technology has its merits and demerits based on the uses and functions. Like other such things, Geofencing has some disadvantages in enabling and using it.

  • Battery Consumption – As this technology needs to be used actively for a better experience, it also needs to be available most of the time. So the battery consumption is the one thing that needs to be considered.
  • Location accuracy – The geofencing requires location accuracy to target at the customers. So the accuracy in location also affects enabling geofencing and utilizing it.
  • Privacy concerns – Accessing people’s location is the most challenging one that needs to be attained. As most people feel insecure about sharing their information about the location and some other personal details, geofencing is a more challenging one.
  • Relevant notifications – If there is a failure to gather information about the people’s age and gender, it would be a significant blow as customers will receive irrelevant news about the products and information, making them unamused at it.

Some popular companies using Geofencing technology

  • Walmart
  • Starbucks
  • Uber
  • Dunkin’
  • John Hopkins Hospital

Final Line

According to Galus Australis, the Geofencing market globally grows at a CAGR of 27.01% by revenue from 2019 – 2026 by Apple, Inc. Good marketing requires modern innovative strategies to pull customers and clients. Geofencing is one of the technologies that need to be placed at the focal point.

Abiram Kishan

A dynamic GIS analyst with a strong knowledge of his projects. Abiram is highly experienced in Mobile lidar, UAV Lidar and continues his research on various GIS projects. He always strives to make better decisions that lead our clients. He is a chess person who spreads good vibes.