Geo-fencing technology – working and applications

What is Geo-fencing?

Geo-fencing is an advance technology that defines a virtual boundary or zone around the user added region. It allows automatic alerts (notifications) to be generated based on the defined coordinates of a specific geographic area. These alerts can be in the form of e-mail, text messages and notifications.

How it works

Geo-fencing combines awareness of the user’s current location with the awareness of the region closer to him that he may be interested in. It notifies you via app, email or text when your device enters or leaves geographical regions set up by the authority. The developer specifies the latitude and longitude to create a virtual boundary for targeted region. Geo-fencing technology allows you to set up the radius to identify the properties within the reach of your location. The latitude, longitude, and radius are added as region, which make a boundary called fence, around the location of interest. All you need is an app and Wi-Fi service in your Smartphones and you will start getting notifications setup by the Admin.

Application developers can build two types of apps using Geo-fencing technology.

 Key/reminder finding app:

This kind of apps trigger an alert whenever user leaves a specified zone, reminding user to bring all the difficult task which is always actually hard to remember.  For example, it will remind you to take keys or turn off the WiFi when you leave the home.

Deal/offers finding app:

This kind of apps notifies user with the latest and greatest deals like any offer avail in shopping malls or any celebrity is coming around when he is nearby the location. Basically, it will trigger the alert when you enter the specific geographic area. It is widely used for the marketing campaigns.

Where Geo-fencing is useful?

Geo-fencing is frequently deployed by restaurant for marketing when the customer enters into the restaurant. They trigger a text message with the day’s specials to attract more customers. Many Companies use it to monitor and restrict the use of mobile devices beyond a Geo-fenced perimeter. Geo-fencing is also used in an ankle bracelet to notify authorities, if an individual under arrest leave the premises in low enforcements areas. Lots of big companies are using this technology in their marketing plan. Ford, Coca-Cola, Starbucks, Best Buy, Taco Bell and NFL are some of the big brands that have successfully utilized this technology for a marketing campaign.

Advantage of using Geo-fencing for marketing

Local shoppers can attract customers by giving offers

Geo-fencing help you trigger message or notifications when users enter in the targeted area. Local shoppers can send the special deals to their prospective customers when they are near the shop. Some companies send notifications like movie tickets just before movie time or special discount on products just when someone enters in the shopping mall. This is possible using Geo-fencing technique.

Enhance performance by analytics

Using data analytics, companies can see whether targeted offers actually bring people into stores and result in more sales. Other analytic metrics include how often a customer visits the store, how long they shop, and how well a window display works.

Provides personalized shopping experience

When you know, the exact location of customers and their buying perception, You can customize offers for them along with giving them a personalized buying experience. You can offer some attractive incentive to the repeat customers. It also empowers store owner to effectively use the geographic targeting.

While smart phone users are increasing day-by-day, mobile marketing is going to be the future of the digital marketing.  Geo-fencing technology allow you to explicitly use the location targeting strategy and gives you the detail insights about how your geo-targeting campaign is performing.