Learn about the main types of geofencing and how to leverage them in this article!
Understanding and leveraging the three types of geofencing properly is a great way to ensure you see the highest ROI possible for your marketing efforts. Just starting off, geofencing comes in three main types: active, passive, and boundary. Active geofencing utilizes GPS and requires that a user’s location services are turned on. Passive geofencing runs quietly in the background using Wi-Fi or cell towers. Boundary geofencing sets up a static zone around a specific location to trigger actions based on when users leave or enter that zone.
In the article below we’ll teach you not only more about each type of geofencing method, but how to utilize them in your own marketing efforts! Let’s dive in!
Geofencing is a type of geotargeting method that creates a physical boundary around a specific geographical location. Geofencing uses GPS, Wi-Fi, RFID, or cellular data to establish a perimeter around a defined geographic area. When a user’s device crosses into that perimeter, it can trigger a wide array of actions based on what the user does. You can send push notifications, log entry/exit data, change website content, send sms, and more - all depending on what will serve your efforts best.
Geo targeting is a method of advertising and marketing that leverages the location of your users to deliver personalized content to them in a wide variety of ways. You can utilize geotargeting to serve up custom content on your website, in apps, on smart tvs, and even on social media. Geo targeting is one of the most powerful marketing tools around today! You can leverage things like the user’s IP address, GPS coordinates, device/browser location permissions, and more.
Geofencing is incredibly targeted marketing that offers real-time engagement. In addition to these benefits, the quality of analytics and tracking that is available for this type of technology is also incredible. Not to mention, if you spend any money at all on your website, this can be used to improve your conversion rates from any traffic the website receives, assuming the traffic is related to the locations you are targeting with your geofencing campaigns.
One of the primary drawbacks of geofencing is that it requires users to enable location services, and in the case of SMS campaigns, users must explicitly opt in. However, since the majority of people already keep location services enabled, geofencing still provides access to more actionable data than many comparable targeting methods—even without direct user approval in every case.
There are technically more types of geofencing, but this article will only focus on the primary types you’re likely to see in the wild.
Active geofencing relies on GPS and requires the user to have location services enabled. It’s highly accurate and can track user data and movement in real time. It is more resource-intensive, but can be incredibly useful in a wide variety of situations.
Passive geofencing uses Wi-Fi or cell towers and runs in the background. It doesn’t require active user engagement to be utilized and is much less resource-intensive. However, it is not as precise or actionable as active geofencing. Most mobile geofencing campaigns are conducted utilizing passive geofencing.
Boundary geofencing is based solely on static zones and is usually named after the geometric shape the fence is designed after. You’ll most often see it being utilized in a radius around a store, workshop, conference, etc. These types of geographic zones are used to send automated alerts, local promotions, or other types of alerts when users enter or leave the area.
Typically mobile geofencing is used and focused on smartphone users specifically. You’ll commonly utilize apps to send push notifications, display targeted ads, personalize app content, inform users in the area of specific sales or promotions, etc. All of these things are based on real-time user location.
Many companies can benefit from these types of geofencing techniques. Some of the most common use-cases can vary from retail businesses, event organizers, real estate brokerages, healthcare service providers, and even various delivery-related companies. By no means are these the only industries that can benefit from geofencing, but these are some common examples.
You would be hard pressed to find companies that cannot benefit from dynamic location-specific website personalization. Especially if that personalization is in the B2B sector.
You can combine the analytics gathered from your geofencing campaign with your CRM for tailored messaging and outreach. A/B testing can be leveraged from zone to zone to determine which messaging converts more effectively, and you can even integrate your data with analytics platforms to track ROI. This isn’t even everything that can be done to leverage geofencing technologies - it’s just the tip of the iceberg.
At GeoFli, we offer an intuitive system to help business owners leverage the power of geo-targeting for themselves. If you are a business owner or a marketer and you know geotargeting will positively impact your bottom line, we’d love to speak with you. Fill out the form below and get in touch with us today!
