What is geofencing and how can it benefit your business?
Before finding out what geofencing is, we propose a memory exercise. Do you remember the film Minority Report? In one of his most memorable scenes, the character John Anderton (Tom Cruise) walks down the aisle of a shopping centre of the future. Upon detecting his presence, an advanced system activates and shows him, wherever he goes, various ads. Every time John Anderton passes through a particular area, he receives the corresponding publicity. Once he leaves the area, he stops receiving it...
So… what is geofencing?
The Minority Report scene that we have just mentioned will help us to clearly understand the concept of geofencing. If we look at the word, next to the prefix ‘geo-‘ the term ‘fencing’ appears. The latter refers to the fencing of areas (for example, gardens, stables, etc.), which helps to define them and the use which will be given to them.
This way, we can understand geofencing as the establishment of a virtual perimeter that defines a geographical boundary. Once this virtual zone has been defined, specific software (for example, based on the Google Maps Platform) issues alerts or triggers when a user enters or leaves it. These alerts or messages are received by the user on a predetermined device which has geolocation technology.
For the definition of these areas, you can count on the invaluable help of GPS technology or beacons: both options allow you to determine the points that mark the limits of the area, as well as to recognise when a user is within it or when they leave.
Among the types of companies and organisations that can most benefit from this type of technology are the following:
- Airport facilities
- Restaurants and bars/cafés
- Leisure facilities and theme parks
- Sale and rental of vehicles
- Retail (retail trade)
- Banks
- Estate agents and promoters
- Educational institutions
- Hospitals and pharmacies
- And so on, and so forth…
How can geofencing benefit my business?
Geofencing is not a passing trend: companies perceive the enormous potential it can have for their business and are opting for this technology more and more. Among the advantages offered by the management of these virtual areas, the following stand out:
- Creating brand awareness among an audience which would not otherwise know about it
- Attracting potential customers from the competition
- Increasing the conversion rate of customers
- Increasing sales, as more than 50% of consumers visit companies that issue alerts based on geolocation
- Helping to retain customers who have entered through this channel, as they receive personalised communications every time they go through the area defined for geofencing
- Offering precise data about the public contacted, their conversion to lead and the sales made. All this information can be analysed to detect patterns and generate campaigns and marketing actions accordingly
For their part, consumers also want user experiences that take advantage of the capabilities of their mobile devices and their location data. In this sense, recent research shows two very interesting facts:
- 80% of consumers want to receive alerts based on their location
- After receiving messages based on their location, approximately 75% of consumers carry out processes or associated actions
According to these benefits and business opportunities, it’s time to take a chance on geofencing! Here at Intelligence Partner, as Premier Partner of Google, we are here to support you in this decision.
Let us know what your needs are. Based on the Google Maps Platform geolocation solution, our professionals will propose the most appropriate strategy for your business and will indicate the steps to follow, from the definition of the virtual fence to the analysis of the results.
Once you know what geofencing is and what its benefits are, you just have to get in touch with us.
Shall we talk?
