What is Geofencing?

What is geofencing?

A geofence is a virtual perimeter for a real-world geographic area. A geofence could be generated dynamically or can have a predefined set of boundaries. The use of a geofence is called geofencing. 

Geofencing is a location-based service where software or apps use global positioning systems (GPS), RFID, Wi-Fi, or cellular data. It triggers an alert when a location-aware device enters or exits a virtual boundary. For example, if a mobile device or RFID tag enters or exits a geofenced area, it can prompt: 

• Enable tracking for vehicle fleets

• Actions in other apps

• Disabling specific technologies

Geofencing is widely used as a security tool to monitor activity in secure places or precise locations, ranging from a single street to entire cities such as the UK’s Clean Air Zones. Businesses also use location data to monitor employees in the field and for time tracking.

How does geofencing work?

Geofencing software platforms use different technologies to build their virtual fences. The most commonly used technologies include GPS, RFID, Wi-Fi, and cellular data signals. Some fences are built using IP address ranges. 

Setting up a geofence can be as simple as drawing a circle around a location on Google Maps with geofencing software. Geofences can be drawn in any shape or size to accommodate larger areas or specific buildings. When an authorised or unauthorised device, RFID tag, or mobile app enters or exits this specific location, it triggers a response. 

Geofencing software integrates with other systems to create customisable triggers. These triggers use simple “if this, then that” style commands where an app is programmed to take action based on a different action. For instance, “When a vehicle enters this area, send the warehouse manager a text message saying: Driver is 10 minutes away from the warehouse.”

Difference between geofences and beacons

Geofences and beacons can both be used to detect location and proximity, but they use different technologies. A beacon is a BLE (Bluetooth Low Energy) hardware device. Beacons broadcast a signal that Bluetooth-enabled devices can pick up when users opt into specific mobile apps. Beacons differ from geofencing because they:

• Are physical devices. Beacons are hardware devices used to track location; geofencing requires no hardware.

• Do not rely on GPS or Wi-Fi. Beacons are independent of these technologies but require Bluetooth to be enabled.

• Have a shorter range. Beacon signals broadcast as far as a Bluetooth signal travels. Geofences can be drawn virtually anywhere.

Generally, geofencing and beacons are complementary technologies. Geofences are better for covering large areas, while beacons cover smaller, close-proximity locations with accuracy. Beacons can also be placed indoors, creating ultra-targeted micro-locations.

Common use cases for geofencing

Fleet telematics

Geofencing has become a valuable tool for fleet telematics and overall supply chain management. Fleet managers and dispatchers can track activity around warehouses, distribution centres, and delivery locations. By setting up geofenced areas, fleet managers can track deliveries in real time, decrease detention time, plan routes efficiently, prevent cargo theft, and improve customer service.

Geofences can be configured to cover precise locations, ranging from a single street within the UK’s Clean Air Zones, to entire cities. This level of customisation allows businesses to monitor their fleet's movements in real-time, making it easier to plan routes that minimise time spent in these zones, or ensure that only compliant vehicles enter.

Security

A basic security measure involves using a virtual fence to detect when someone is entering or leaving a property. Businesses can set up a geofence and receive real-time alerts if there are unauthorised individuals on-site after hours. Geofencing software can even trigger automatic alerts to law enforcement or off-site security teams to investigate further.

Security teams can also leverage geofencing technology to protect sensitive information or restrict devices usage. For instance, IT or security teams can set up a “no-phone” zone using geofencing to detect when a mobile device enters an area or disable phones completely within the zone. This can prevent unauthorised recording or leaks during entertainment events or meetings or keep high-security areas safe (military bases, prisons).

Human resources and workplace safety

Human resource teams and managers use geofencing in workplaces to automate clocking in and out of work. When employees enter a worksite, a geofence system can automatically punch in for a worker or send the worker a push notification to their device. Managers can also track who’s on-site in real time, even for remote employees.

Companies also leverage geofencing to keep employees safe. For example, businesses can use geofences to create low-speed zones or keep drivers out of dangerous areas on construction sites. In scenarios such as controlled explosions, geofencing ensures no workers remain in the blast zone.

Location services and safety

Just as geofence technology is used to track people entering a fenced area, it can help notify people when a person leaves a physical location. For example, parents can set up geofences around their home, babysitter’s house, or child’s school. When children come and go from these locations, parents can receive text messages or other alerts.

Similarly, geofencing helps protect and prevent persons with Alzheimer’s disease or dementia from wandering away from caregivers.

When combined with home automation apps, geofences can also automate house lights, stereos, TVs, and thermostats. For example, it's possible to set up outdoor lights to turn on if someone enters your property when you’re not home. Lights can also be programmed to activate upon entering a geofenced area, eliminating the need to walk into a dark room.

Marketing and advertising

Geolocation data is a valuable tool for a business’s marketing strategy. For example, large retailers leverage geofencing and mobile marketing to get customers into their retail stores. When a person who’s downloaded the retailer’s mobile app is within the store's vicinity, geofencing triggers an alert notifying the person of new products and loyalty points they can spend. 

Another business implemented a geofence around a competitor’s location. When a customer entered the area, the business sent them an offer to entice the customer away.

Have you ever been to a conference or wedding that had customised Instagram filters or social tags? This is geofencing technology in action. Businesses (and individuals) use social media to personalise experiences. When social media users enter or leave a geofenced area, the venue or event can prompt them to check-in, post an update or upload an image, or share feedback.