Benefits of Geofencing for Your Business in 2024

Organizations in the year 2024 are always on the lookout for the latest trends to market their products and services to the target market. One such technology is geofencing, which has slowly found its way into adoption by various organizations. But what is geofencing, and how could it be of assistance to your business? Let's dive in and explore the future of geofencing.

What is Geofencing?

Geofence is a location-based solution that applies GPS, RFID, Wi-Fi, or cell data to perform the prearranged action when the portable device arrives at or leaves a specific area called geofence. This last geofence can, for example, be scaled manually depending on the size of the area of interest, whether it is a single store or an entire metropolitan area.

The Future of Geofencing

The application of Geofencing has a bright future ahead. A study by Market and Markets shows that the geofencing industry has risen from $ 542.7 million in 2017 to $ 1.8 billion in 2022. They attribute this growth to technological developments and the general expansion of location-based services. It also seems that with businesses looking for better methods to get their products to the consumers, the future of geofencing is assured in digital marketing tactics and business operations.

Benefits of Geofencing

1. Targeted Advertising

A fascinating aspect of geofencing is that it presents an avenue for targeted advertising. Geofencing creates a virtual perimeter around a specific geographic area and delivers ads to possible consumers of products within that area. This can enhance the impact of the advertising campaign and may also lead to a favorable handling of the customers. For instance, a retail store can target the users who are in close proximity with their business premise to offer them discount promotions in the store.

1. Improved Analytics

Geofencing is a very useful technology for businesses since it yields insights into their customers' habits. Geofencing enables businesses to collect information like frequency, recency, and frequency of visits, the time spent by the customers, and areas interested. This can be applied in the formulation of business strategies as well as the decisions made. For instance, enterprises can use this information to identify some of the sections in a store with much traffic to place products with high-profit margins.

1. Enhanced Customer Engagement

Lead generation through customer engagement can also greatly improve by geofencing. When companies text their customers with discounts when they are close to their commercial outlets, they are likely to earn their trust and patronage. For instance, think of a customer strolling along his/her everyday errands when he/she gets a notification of a special offer for his/her favorite cup of coffee from a nearby café. Engaging the customers in this manner is a good way of realizing a unique selling proposition that can improve customer loyalty.

1. Increased Operational Efficiency

The use of geofencing can also boost productivity because it provides ways for businesses to track their assets and employees. For instance, a logistics company can employ geofencing to ensure that the trucks are following the appropriate pathways. This may lead to savings on fuel expenses, shorter delivery time, and, thus, an overall improvement in operational efficiency. Moreover, geofencing can be applied to monitor the absence and presence of employees to determine the location of every worker during working hours.

Uses For Geofencing

Here are some of the uses for geofencing in the various industries. Below are some of the famous geofencing applications:

• Retail: Geofencing can also be applied where the retailer sends coupons that are relevant to clients within the vicinity of the store. For example, an accumulated clothing line merchant can make a passive notice to people around, informing them about a sale being on with the intention of increasing traffic.

• Events: Event planners can also use geofencing to alert all the event attendees on the events schedule or any changes to do with the events schedule. This way, attendees will be enlightened and can take their event experience to another level.

• Healthcare: In the healthcare industry, geofencing can be helpful in the case of patients who are suffering from dementia or have a tendency to wander off due to other medical conditions. Caregivers may also be notified if a patient goes to an area that is not safe.

• Logistics: Dispatchers can monitor their vehicles and be sure that the vehicles are on the correct path. It not only helps to save time but also increases the level of safety of the transported goods.

• Hospitality: Geofencing is an effective feature for hotels and resorts that can alert guests of various promotions according to their location within the hotel. For instance, guests in the spa's neighboring room can be offered a discount on spa services.

Choosing a Geofence Service

Below are the factors that business people should consider when selecting the best geofence service for their businesses:

• Accuracy: The geofence service needs to be very accurate. Managers have to consider how the service can provide clarity on when the boundaries are crossed and when the appropriate actions are to be initiated.

• Size of the Geofence: The size of the geofence that needs to be selected may differ depending on the type of application. While some enterprises may require tiny geofences around a store, others may require large geofences to encompass multiple enterprises.

• Cost: The cost of the geofence service is also a factor that cannot be overlooked. Customers need to consider the pricing mechanisms and confirm that the service being offered is pocket-friendly.

• Compliance: When selecting a geofence service, there is also a need to ensure that the service has adhered to privacy laws and regulations. Businesses need to pay special attention to the way they handle customer data.

The Future of Geofencing Technology

As we look to the future, geofencing's effectiveness will increase when it is incorporated with other new generation key technologies like artificial intelligence and machine learning. Here are some trends to be on the lookout for.

• Personalized Experiences: The future advancement of geofencing technology will bring even more targeted customer experiences. Automated real-time messaging can be used to target the customer with specific notifications and offers that are close to their heart.

• Integration with IoT: Geofencing technology will interface with Internet of Things (IoT) devices more frequently. This will help companies design new, efficient environments, such as smart shops with changing lights and music depending on buyers' preferences.

• Enhanced Security: First, the use of geofencing will significantly increase security measures. Geofences can also be set up as the areas that should not be accessed by unauthorized individuals, with alerts if any unauthorized persons enter that restricted area.

Conclusion

To sum it up, geofencing has enormous, diverse advantages, which is why it is efficient to use in business in 2024 and even later. These are some of the benefits of geofencing you can get from using geofencing technology, starting from the ability to produce highly targeted advertisements. On top of that, it enables organizations to minimize the time they take to deliver their services due to efficiency in their operations. This means that as geofencing advances further, more creative applications using geofencing will be unveiled in different sectors. Are you ready to start discovering the opportunities? Thus, contact us to learn more about geofencing and how it can bring astounding results in your particular field and give your business idea an edge amidst rigorous competition. Geofencing has an array of benefits that can help your organization; begin using geofencing now!

Aishah is an avid writer covering user-focused and tech-based content for various industries including healthcare, retail, and education etc. She is lately contributing to enlightening the benefits of digital mapping technology.