Geofencing

What is geofencing?

Geofencing involves creating virtual boundaries around specific locations using GPS, WiFi, cellular data, or RFID technology. When someone’s device enters, leaves, or dwells in these virtual zones, it automatically triggers alerts or notifications.

For example, when attendees enter a tech conference area, they might receive a welcome message with the day’s agenda or session highlights. These alerts can reach people through SMS, email, in-app notifications, push notifications, or targeted social media ads.

Developers typically use APIs from platforms like Google Maps or other web-based mapping services to set up these virtual boundaries.

What are the different types of geofencing?

Based on application needs, different types of geofences are available:

• Shape-based geofences: Circle geofences designate circular areas as boundaries, while polygon geofences use multi-sided shapes to define irregular boundaries around specific locations.
• Movement-based geofences: Static geofences maintain fixed boundaries. Dynamic geofences adjust boundaries based on factors like traffic conditions or travel routes. Isochrone geofences define areas based on travel distance, such as a 10-minute drive radius.
• Activity-based geofences: Active geofences operate only when the application is running or the user is active. Passive geofences function continuously in the background without requiring app activation.
• Purpose-specific geofences: Proximity geofences use Bluetooth technology for short-range, precise boundaries. Emergency geofences activate alerts during emergency situations. No-go zones establish restricted boundaries that trigger alerts when breached.

What are the different applications of geofencing?

Geofencing has been used across various applications, including:

a. Marketing

Businesses use geofencing to deliver targeted promotions, discounts, or product information through apps, SMS, and push notifications when users enter designated boundaries. 

For example, Burger King launched a campaign that sent app users an alert to order a Whopper for one penny whenever they approached a competitor’s store. After users followed the instructions and placed their order, they were directed to the nearest Burger King location. This campaign significantly increased sales and generated widespread attention.

b. Security

Geofencing creates secure perimeters by establishing no-go zones and detecting unauthorized access. It monitors restricted entries and exits while providing emergency alerts to users within designated areas. 

For example, Guardly, a Canadian security company, has deployed virtual geofences around major US universities and colleges. Each geofence connects directly to campus security phone numbers, giving students one-touch access to campus security from any location on campus grounds.

c. Logistics

Geofencing enables fleet management by monitoring vehicle entry, exit, and movement. Administrators receive real-time alerts about vehicles entering or leaving designated areas, along with information on stationary vehicles. The system tracks vehicle routes, stop points, and travel times, providing effective fleet management, secure premises, and complete visibility. Companies also use geofencing to organize users into zones and implement location-based services.

For example, Uber uses geofencing to organize users into different zones, showing available drivers at specific locations and implementing dynamic pricing in high-demand neighborhoods. This allows them to efficiently match supply with demand across their network.

d. Healthcare

Geofencing is used for patient monitoring and clinical trial management. Healthcare providers monitor whether patients are visiting designated medical facilities, staying within safe zones, or avoiding restricted areas during treatment. The technology also allows automatic check-ins for appointments and provides real-time location data for emergency response.

For example, Janssen uses geofencing technology combined with wearable devices to monitor clinical trial participants. The system tracks when patients enter or leave study sites, ensures they attend scheduled appointments, and monitors their movement patterns to assess treatment compliance. This approach provides researchers with valuable data about patient behavior while reducing the administrative burden on study site managers.

What are the different challenges in geofencing?

While geofencing offers significant advantages, it also presents several challenges that organizations must address:

• Continuous location tracking raises privacy issues and requires strict compliance with regulations like GDPR and CCPA. Organizations must implement proper data governance and user consent mechanisms to avoid legal complications and maintain user trust.
• Geofencing requires constant GPS monitoring and background processing, which significantly drains device batteries. This can lead to poor user experience and reduced app usage, particularly with active monitoring systems.
• GPS signal interference and urban environmental factors like tall buildings, dense construction, and underground areas can affect geofencing precision. This may result in false triggers or missed notifications, reducing system reliability.

Organizations considering geofencing implementation should evaluate these factors early in the planning process for successful deployment.

Despite these challenges, geofencing remains a powerful tool for businesses seeking location-based engagement and operational efficiency. Success depends on careful planning, transparent privacy practices, and choosing the right geofencing approach for your specific use case.