What is Geofencing?
Geofencing is a virtual barrier or a set of virtual boundaries established around a geographical area in order to create a ‘fence’ that triggers a response when someone or something, such as a vehicle, enters or leaves that area. It uses location-based services like GPS (Global Positioning System), RFID (Radio Frequency Identification), and cellular technologies such as GSM (Global System for Mobile Communications) and Wi-Fi to detect the presence of a mobile device. Geofencing combines software with location-based technology to create a virtual fence or barrier around a geographic area.
How Does Geofencing Work?
Geofencing works by leveraging different technology systems including GPS, RFID, Wi-Fi, and GSM to detect a mobile device’s presence when it enters or leaves the pre-defined boundaries. Whenever the device enters or exits the geofenced area, notifications are sent to the user’s device and/or an end-point system. Depending on the type of geofencing, the event may be recorded. The data collected can be used to monitor and analyze the user’s movements, contact tracing and optimization activities.
Benefits of Geofencing
Geofencing brings together the physical and digital worlds, enabling businesses to better understand their customers. In addition to location data, geofencing can collect data on device types, user interests, and activities in a given area. When used correctly, geofencing can feature prominently in businesses’ overall digital marketing, communication, and/or targeting strategies. Some of the primary benefits of geofencing include:
• Companies can send timely, personalized notifications to customers within a given area
• Can be used to measure the effectiveness of digital campaigns
• Helps with contact tracing efforts
• It can be used to enhance traditional forms of advertising such as offline media and radio
• It enables businesses to track the location of their employees for safety purposes
• Can be used to segment customers based on location
Geofencing holds a lot of potential to help businesses target, engage and retain customers. By leveraging location-based technology, companies can create personalized experiences that drive higher customer engagement and capture valuable data to better understand their customers.