What Is Geofencing? How Does It Work?

Geofencing is a buzzy mobile app capability that’s been around for at least a decade; however, developers are only now seeing the full potential of geofencing for building a great user-first experience. Source

While geofencing received some attention in relation to user privacy, new tools are considering how geofencing can better surprise and delight customers – and in the future, radically change the way companies deliver location-based experiences. 

From sending a tailored promotion when a customer enters a retail store to powering order-ahead food delivery, geofencing plays a key role in making mobile apps contextually aware. How does geofencing work, and how can mobile app developers better deploy this technology? Here’s what you need to know about geofencing. 

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Geofencing: What is it?

Geofencing is a location-based service in which an app or other software uses GPS, RFID, Wi-Fi or cellular data to trigger a pre-programmed action when a mobile device or RFID tag enters or exits a virtual boundary set up around a geographical location, known as a geofence. 

What does it mean in practice?

Think about it like this: geo-fencing is like an electric fence for your dog but in the real world. Geo-fencing allows for the setup of virtual fences or areas, wherein the entering and exiting through the areas triggers a response or action by the individual or company monitoring the geo-fence. So, instead of alerting a pet owner when Fluffy wanders into the neighbor’s yard, geo-fencing triggers alerts for a business owner when key things happen: a customer visits a store, for example, or the store of a competitor. 

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How does it work?

To make use of geofencing, an administrator or developer must first establish a virtual boundary around a specified location in GPS- or RFID-enabled software, which can be as simple as a circle drawn 100 feet around a location on Google Maps. This virtual geofence will then trigger a response when an authorized device enters or exits that area, as specified by the administrator or developer.  Put simply, picture virtually unfolding a paper map, taking a virtual pencil, and then drawing a virtual circle around a desired part of the map. Then, whenever someone or something enters or exits that area, you are alerted. 

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What is it used for?

Early geofencing projects revolved around using GPS to track herds of livestock or using ankle monitors to keep an eye on criminal offenders. This tracking then developed into keeping track of truck drivers on their routes as well as using  “smart cards” to track employee movements in a building. 

Today’s use of geofencing has evolved beyond simply tracking where a target customer (or a herd of sheep) is at any given time. With privacy concerns challenging companies to rethink their use of geofencing, companies like Radar are leading the way in innovating how geofences can improve the user experience. 

Take, for example, Burger King’s Whopper Detour Campaign. Burger King ran a promotion to sell Whopper burgers for $0.01 – but only to customers within a 600-foot radius of a McDonald’s. Customers could download the Burger King app and head to their nearest McDonald’s. When they were within the geofence, the app would redirect them to their nearest Burger King to redeem the promo. 

This is just one way brands are thinking creatively of how to use geofencing to surprise and delight customers – without invading their privacy. 

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