The marketing landscape is changing with the evolution of technology. The same technology has helped to make the marketing more target focused instead of shooting in the dark. The geofencing concept is also a prime example of target-focused marketing. In assistance to location-based marketing, it helps to connect with an audience that might be the potential customer of the business.
What is Geofencing?
So, Geofencing is the location dedicated service, mainly used for marketing actions for the people in specific geographic areas. The geofencing software or app mainly uses RFID (Radio Frequency Identification), WiFi, Cellular Data, or GPS.
We should use an example to understand it better.
So, suppose you own a cosmetic store. Using Geofencing software or apps, you will get a notification whenever someone enters your shop’s nearby geographical area. You can also send them a notification about the deal you want to offer. It enhances the chances that the person will convert into a customer, whether or not he/she had planned to do some cosmetic shopping.
What Is a Geofencing App?
The app that allows you to mark a virtual fence around a geographical area for any purpose is called the geofencing app. The app is, however, mainly utilized for marketing purposes because the marketing principles that geofencing apps follow are very effective. When you are standing just at the doorstep of a store and get the discount offer, most probably you will walk into the store.
However, the use case of the geofencing app is not limited merely to marketing. One can use the app for
- Time tracking
- Vehicle tracking
- Child location
- Home automation
- Law enforcement
Other than marketing, one of the most basic uses you can make of a geofencing app is child safety. The app can get a notification whenever your child enters or leaves a particular area.
What Market Stats Say About Geofencing Apps?
Talking about some facts and figures might help us understand the broad market and incredible usability of Geofencing apps. So, let’s go through some one by one. First of all, you must be familiar with the concept of click-through rates in digital marketing. So, when implemented with geofencing, mobile ads’ click-through rate doubled.
Talking about the accessibility and reach of geofencing apps, it has been identified that there are more than 6.6 billion smartphone users worldwide. Geofencing apps are compatible with 92% of smartphones, which count for around 6 billion people worldwide.
Find more statistics at Statista
Geofencing serves a personalized experience in marketing to its target audience. At the same time, according to stats, 71% of consumers prefer a personalized ad experience. So, the concept enhances the chances of getting customers.
How Does Geofencing Work?
The working principle of geofencing apps works entirely based on the location of devices. For the same, the facilities such as cellular triangulation, WiFi tower triangulation, GPS, etc. are utilized. Geofencing doesn’t require hardware and entirely operates as software compatible with standard devices.
When the above-defined facilities and software are combined, it helps build a geographical fence to perform several activities within the area. The area can have a radius of 50 meters as well as 50,000 meters.
The upper hand of the technology is that it is capable of working in the background. One doesn’t have to keep the app open to receive notifications about offers or deals. However, you might not prefer to compromise your health for random deals. So, Geofencing software makes sure that they don’t drain your smartphone battery. Most geofencing apps only consume as little as 0.1% of the total battery capacity.
Benefits of Geofencing App
Marketing is undoubtedly one of the essential practices for any organization and business. It brings you customers and assists you stretch the reach of your business. So, Geofencing makes the marketing practices of your business even more advanced and effective. Let’s understand the statement with the following definitions-
1. A Real-Time Targeting
When the customer is sitting at his home and receives a discount offer from a store, they might not prefer to visit the store at the moment. But, when the customer is 50 meters away from the same store and receives the notification about the same deal, there is a significant chance that they will visit the store and avail of the offer. So, real-time targeting enormously increases the chances of attracting customers.
2. Different Levels of Interaction
It takes effort to magnetize the customers and make them buy things when they don’t even have planned for the same. So, a geofencing app offers you ample support for different interaction tools to connect with your customers. You can send text messages, emails, ads, and pop notifications about your offers to customers.
3. Higher Conversion-Rate
As we studied in the above section, the ads equipped with the geofencing feature claim twice the clicks of random ad buttons. So, geofencing increases the conversion rate and helps close more deals.
4. Substitute the Use of Human Resources
Human resources cost much financial support for the company. No matter if the concern is a local store or a national-level enterprise. To perform local and geography-based marketing requires human resources. So, the geofencing apps and software substitute the need for human resources for area-based marketing.
5. Integration with Other Marketing Tool
When we talk about national-level enterprises and organizations, relying entirely on geofencing marketing is insufficient. However, integrating the geofencing concept with an overall marketing campaign can take the effectiveness and marketing ROI to the next level.
6. Instill Security
Having talked sufficiently about the marketing purposes and benefits, let’s talk about some different benefits. As we told you before, the geofencing concept is not limited merely to marketing but carries much more. With geofencing, you ensure the security of your children and loved ones. The software notifies you whenever any family member leaves a particular area or visits a place they are not supposed to visit. Also, you will be notified instantly if a stranger tries to enter your premises.
Every firm is aware of the other firms and places where they can find the perfect employees to attract. So, a geofencing app helps you connect with the employees working in similar firms as yours and offer them attractive deals to join your company. This way, you can hire employees with relevant qualifications and experience without significant effort.
Features of A Geofencing App
Features are always the core part of any application that determines the usability of that app. Like the use cases of geofencing apps, the features they carry are also multiple. We have enlisted the major and must-have features for the Geofencing app
1. Send Notifications
As the whole app is based on sending marketing alerts, having the notification feature becomes an obvious thing. So, every geofencing app has a notification feature that helps the stakeholders to share and receive updates about new deals and offers.
2. Independent of GPS
GPS requires tremendous power support. So, if the geofencing app depends on GPS, it will drain the battery in just a couple of hours. So, most geofencing apps depend on RFID (Radio Frequency Identification), WiFi, Cellular Data, etc.
Accuracy can only be obtained with GPS, which is undoubtedly a big battery drainer. So, whether you can offer the accuracy or the low power running feature. However, a balance can be established between both according to the users’ requirements.
4. Location Data Analysis
An app should be able to store different data and enhance the app’s use case for the user. Specifically, the app should be capable of collecting foot traffic, dwell time, and visit history. Foot time is the availability of people in a particular area, dwell time is the time spent by the users in a particular location, and visit history is the geographical area that the user frequently visits.
5. Geofence Management Feature
Creating the geofences is not sufficient, but users must also manage them. So, geofencing apps allow users to set multiple geofences on different areas. At the same time, users can also make a set of geofences to perform similar stunts or actions on that particular set. At the same time, the app also allows setting a time frame when the marketing campaign is expected to be active. Moreover, the app also enables you to set the variable radius of each geofence.
The user who was targeted earlier should be targeted sufficient times. The targeting should be continued in case of a positive response, and the targeting should only be done eventually in case of a neutral response.
7. Map Integration
Map integration is the core feature that makes geofencing apps functional. Maps help mark the areas where the user wants to install the virtual fence. At the same time, map integration navigates the routes between different geofencing areas a user has set in the app.
8. Voice Guide
Not a core, but a good-to-have feature is a voice guide. Having entertained the customer with the ad, if your app can navigate the path to your store, it will be easier for the target to visit the location.
9. Bulk Updates
When we are talking about marketing campaigns and practices, obviously, we can not focus on one person. So, the geofencing app is meant to have the bulk updates feature, which can notify you about multiple numbers and networks being established with people in nearby areas.
10. Geofence Label
Setting several geofences might make it challenging to remember each one individually. So, you can easily name the geofences according to the location, so you don’t have difficulty remembering the purpose of these fences.
How to Get Started with A Geofencing App?
Getting started with Geofencing might be a little complicated when you don’t have the right guidance. You need to have a developed app and integrate the geofencing software in that app to access the respective features.
Let’s understand the complete process in assistance with a couple of steps
- First, you need to have an app to integrate the geofencing software and use the feature.
- Here, the capability of your geofencing app depends entirely on the software you choose. So, ensure to select the one carrying core and advanced features.
- Test the software before paying for it. Make sure it suits your purpose.
- Get the software integrated with your app.
- Develop a creative idea to use the geofencing feature in marketing and increase your sales.
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How Does Geofencing Help in Location Based Marketing?
With the Geofence solution, you don’t shoot in the dark to hit the target. Instead, you connect to the people who can be your potential customer. Go through the following list of benefits to understand the plot of this statement.
- When customers are roaming near your store, they don’t have to think twice before visiting the shop.
- Receiving attractive offers and discount coupons when passing nearby can drag them easily inside the store.
- Communicating to the people in a particular area who are potential customers increases the chances of securing the deal.
- Targeting the customer in the competitor’s area can help you achieve competitive advantages in the market.
- Different interactions help marketers target customers multiple times without irritating them.
- Integrating the geofencing solution into other marketing tools enhances the efficiency of the overall marketing campaign.
- Controls the cost of human resource hiring to attract the people inside the store.
How Does Geofencing Compare with Beacons and Geotargeting?
|Marketers can simply install the virtual fence to monitor the subjects entering, leaving, or dwelling in the area.||Marketers can know about the people in a particular area to perform the marketing.||Small devices trigger the nearby people with whom they might like to interact.|
|The concept allows you to target the customer even in the area of competitors.||Only a specific location can be targeted.||Mainly utilized for targeting areas like moving vehicles, crowded zones, and the areas with more availability of target audience.|
|Most of the time, GPS is used, but alternatives like WiFi are also used.||The gadgets of target customers are monitored.||Depends entirely on the BlueTooth of gadgets.|
|Push notification is used to communicate the offer||Tailored messages are used to express the offer||Utilize messages, push notifications, and emails to interact with people|
|For example, helps interact with people entering in a virtual fence of your store||For example, Helps target all the males present in New York City.||For example, help send the message about your offers or deals in nearby areas.|
Use Cases of Geofencing Apps
As discussed, the use case of geofencing apps is not limited to marketing. So, let’s go through other use cases of this concept one-after-another-
helps gather location-specific information for traveling purposes. It can also help to know if it is safe to visit a specific location.
2. Human Resources
the geofencing concept provides significant help in the efficient management of human resources. First, it can help ensure that all the employees are on the respective sites at respective times. Further, the human resource department can contact employees in a similar company to offer them new opportunities.
a store, garage, equipment shop, vehicle rental service, and many other businesses can know when their equipment or tools enter or leave the fenced area.
4. Parental Control
you can fence the areas your child is not supposed to visit. So, you will know whenever they see that location.
one can enhance the safety of their home by knowing whenever any stranger enters the particular borderline.
Drones are being used excessively to enter restricted areas to get confidential insight. So, the geofencing also helps detect such activity by notifying about any equipment or drone entering the area.
7. Advanced Automation
Geofencing can take automation to the next level. Let’s talk with an example. An airline can create a geofence on the airport. So, when the traveler crosses the geofence at the airport, the app will automatically receive the boarding passes. The same scenario can also be applied to other places to make transactions more contactless and smooth.
APIs Required for A Geofencing App
Before talking about the APIs required for the Geofencing app, let’s talk about the meaning of APIs. So, APIs can be defined as the feature or framework that helps make an app functional. APIs provide access to information that allows the app to deliver the individual purpose.
Following APIs Can Be Integrated into A Geofencing App
|Google Maps API||The API helps integrate the maps into the application.|
|Maps SDK||The API enables automatic access to the Google servers, downloads, and responses to map actions.|
|Maps Static||The API allows you to add any Google Maps graphic to a particular website.|
|Street View Static||The API enables the real-life representation of locations.|
|Maps URLs||The API helps generate a cross-platform link to obtain directions and display panoramic views.|
|Directions API||The API helps getting directions as per the preferred mode of transportation.|
|Roads API||The API provides insight into general information like data on traveled roads, speed limits, alternate routes, etc.|
|Distance Matrix API||The API measures the distance between waypoints and calculates the traveling time.|
|Geocoding API||The API helps convert long physical addresses into geographical coordinates and altitudes.|
|Geolocation API||The API helps communicate about locations in a defined parameter.|
|Time Zone API||The API assists in identifying the time zones of different locations worldwide.|
|Places Library||The API enables search for popular landmarks and prominent locations.|
Technologies Used for Location Insight in Geofencing Apps
A location-based service provider app is built on a particular technology that helps the app to access information about geolocation, positions, parameters, addresses, movements, etc. However, the technology range is wide enough, allowing the app to choose how it wants to receive the insight.
Below Are Some of These Technologies with Their Competencies
1. GPS module
Familiar to all, GPS (Global Positioning System) is a satellite navigation technology that helps to provide insight into geolocations and time. Undoubtedly, it is the most accurate solution on the list, but it also drains the device’s battery.
Also known as Radio Frequency IDentification is the technology that uses radio waves to identify different objects and people. The accuracy here is compromised slightly to ensure the health of your device’s battery.
WiFi location tracking or WiFi Positioning System (WPS) is the framework that uses WiFi routers to pinpoint a phone, laptop, tablet, or any small device. The accuracy in the WiFi Positioning Systems works more efficiently than that of GPS.
4. Cell ID
Every device has its unique Cellular ID. So, despite the absence of live data, it can take information from cell towers to provide the device’s approximate location. However, the accuracy is very approximate with this technology.
5. Assisted GPS
Popular as Assisted or Augmented GPS is the more advanced version of GPS by combining Cellular ID with GPS. The accuracy of this technology surpasses even the GPS but also requires ample power support.
A BlueTooth-based low proximity sensor transmits the unique signals from the beacons to receivers. Here the receiver is mainly an app that helps two individuals or parties to connect.
Tips for Implementing Geofencing
When you have already gone so far to implement the geofence concept in your business, you must have some essential tips to enhance the usability and effectiveness of the solution. We are hereby enlisting some of the best tips that will improve the usability of your app and deliver the worth of your investment-
|Don’t Depend on GPS|
|Make sure that the geofencing you are using doesn’t depend on geofencing for location access. It will drain the battery of your device completely.|
|Size Geofences Appropriately|
|The size of your geofences determines a lot about the potency of your software. Setting the large geofences without any data or fundamentals won’t help you. Instead, find out the area where you can find your target audience and geofence such areas.|
|Send Clear Messages|
|Design the message in simple language so the receiver can know the purpose behind your interaction. Don’t confuse the message, as it might drag the customer away from your store.|
|Use Notification Strategically|
|Too many messages to the audience might take your contact to the blacklist or spam folder of the device at the other end. So, ensure that you are sending the notification strategically to increase the chances of being entertained.|
|Geofencing can even give you insight into consumer behavior and shopping habits. You must use this insight to target the customers to bring the deal closer.|
|Use the Right CTA|
|Just communicating the offer or deal might not be effective as it doesn’t tell customers what they are supposed to do. So, implement a right Call-To-Action in your message that tells the next step to the customer once they have received the notification.|
Best Apps with Geofencing Features
There are very limited apps designed dedicatedly for the geofencing feature. However, you can find a number of apps that can offer you basic geofencing features. Still, if you want to see some customized features in the app, you will have to get it developed as per your requirements.
However, to use the primary feature of the concept, you can rely on the following apps-
This is the app entirely based on the concept of Geofencing. The app carries many features you can enable for a particular location. For example, whenever you enter or exit a specific location, you can make your phone ring, give a notification, set an alarm, change your profile, and much more. At the same time, the app also tells you about hospitals, schools, banks, ATMs, restaurants, hotels, pubs, etc.
The use case of this app is mainly focused on navigation. You can geofence the area where you are located. At the same time, you can geofence many other sites as well. This app then helps to easily navigate the different geofenced areas you have marked. 3.
3. Palgeo Geo Fencing Attendance
The app works entirely on geofencing fundamentals. However, it is associated with a specific use case for corporate employees. Companies can use the app to create geofences around their workplace. It will enable the employees to log-in and log-out whenever they enter the boundary. At the same time, the tasks will also be allocated instantly after entering the workplace. It also allows the corporate admins to track the hours an employee has been in the office.
4. Kaspersky Safe Kids with GPS
The app is not a dedicated geofencing app but can help you geofence a specific area as per its functionality. The app is a kids’ safety app. So, along with various other features, it also allows you to create a geofence where your kids are supposed to stay in or not supposed to visit. So, you will get a notification whenever they cross the borderline.
5. EgiGeoZone Geofence
EgiGeoZone is also a geofencing app, however, with limited competencies. You can create up to 100 geofences according to your requirements. While entering and exiting these defined areas, you can choose several actions. It includes sending commands to the server, sending a text message, sending an email, showing a notification, or changing the phone’s profile (like BlueTooth, WiFi, or Sound).
Real Case Studies of Brands Using Geofencing
The concept might seem new and unfamiliar if you are reading about geofences for the first time. But, we can bet that even you have been the subject of this concept several times in your life. Let’s go through some of the case studies of this concept, and you try to remember when one of these happened to you last time-
1. Starbucks Coffee
Starbucks has been using the geofencing technique for marketing for a long time. They generally send push notifications to users when they are roaming in nearby areas.
When talking about Starbucks, Dunkin can not be left behind as both use the same strategy. Dunkin’ sends push notifications about the deals and offers to nearby customers to attract them inside the store.
You must have gotten a notification from Uber when you were at a bus stop, railway station, or airport. But have you ever wondered how they got to know about your need for a ride home? That’s where geofence shows up. They have their geofences set on these public areas; whenever you enter such an area, the phone automatically displays a pop notification.
4. C.R. England
C.R. England is a company that provides jobs to truck drivers. The firm has made very innovative use of the geofencing concept. They have set the geofences in the areas where truck drivers frequently take breaks or visit. By entering the fenced area, they automatically receive job offers.
What It Costs to Develop a Mobile App with Geofencing Feature?
You have gone through a number of apps in the above sections that provide similar services. However, when you look at developing these apps, each will come out with a different budget. The reason is that the cost of mobile app development is variable, dependent on the features and functionalities you want to equip. So, it is never possible to stitch a price tag to a geofence or any app development. Below are the factors that will determine the cost of your app development-
- Number of features you wish to instill,
- Type of features you want to provide,
- The country you are hiring the team from,
- Platform (Android or iOS) you are developing the app for,
- The time it takes for developers to develop the app,
- Tech stack used in the application,
- Changes you seek at different stages, and much more.
You can get your app developed for a few thousand dollars as well as for a few hundred thousand dollars. To plan ahead, you can contact us and get a free one-hour consultancy without our project manager. Get all your doubts cleared and give a start to your new marketing plan.
In the battle of colossal competition, marketing is one of the ultimate weapons any business can fight. Since marketing is accessible to all companies and sectors, one has to be ahead of others to receive the expected benefits. The concept of geofencing assists in taking the step. Inviting the customers when roaming near the store is one of the best and most efficient methods to increase sales. At the same time, informing about the store, product, or service to the people living in a specific area, who can be the target audience of the product, is also a use case of geofencing.
Developing an app for your business can open the doors to new audiences. Moreover, connecting to the people who are your target audience can take your relationship with the customers to the next level. So, after traditional media, online media, and social media, it is now the turn for location-based marketing to take command.