Geofencing Use-Cases: Where to Use Geofencing in 2021?
While the idea of proximity marketing is not new, the fact that 92% of smartphones are compatible with geofencing has allowed marketers to explore this technology in various industries for broader advertising campaigns. Read this blog post to learn about geofencing use-cases in various industry verticals.
Last Updated:  December 28, 2020
Remember Burger King’s well-known Whopper DeTour geofencing campaign that resulted in their app being downloaded 1 million times?
The campaign targeted their biggest competitor McDonald’s, helping them become number one on the App Store.
While the idea of proximity marketing is not new, the fact that 92% of smartphones are compatible with geofencing has allowed marketers to explore this technology in various industries for broader advertising campaigns.
A Market Research Future report predicts the global geofencing market to grow to $2.2 billion by 2023. 80% of shoppers use their smartphones inside physical stores. This should be a cogent factor for all industry verticals to jump into the geofencing bandwagon.
So, what are the various geofencing use-cases in 2021?
7 top geofencing use-cases leveraged by various industry verticals in 2021
#1 Automotive industry: Set up timely alerts for drivers
In what may seem like its most significant vehicle software upgrade to date, BMW introduced a GPS geofencing technology, enabling zero-emission running for its plug-in hybrid vehicles in designated zones.
The technology essentially automates the process of switching to an electric-only mode when a BMW plug-in hybrid vehicle enters a defined area of the designated cities.
The automotive industry can benefit hugely from geofencing. When a geofence is set around a perimeter –
Vehicle owners can receive alerts on their smartphones about traffic and help them identify an alternative route to get to their destination quickly.
In many areas, the use of individual vehicles is restricted to certain times of the day. Geofences can be used to alert users when they are allowed to pass through that particular area.
The traffic management system can identify certain danger spots in a neighborhood that users must avoid. A geofence can help them prompt corrective action, with a vehicle re-routed or alert a driver of an upcoming danger spot.
A geofence set up around parking meters can help drivers identify their vehicles and alert them of their expiring parking slots to avoid paying fines.
#2 Enhance user experience with the Internet of Things (IoT) for smart home devices
The Internet of Things has disrupted the world of technology with its breakthrough features. Amazon’s Alexa has taken IoT a step further with geofencing.
Alexa’s location-based routines lets its users tie multiple smart home actions in line with their phone’s location. With the help of geofencing, users can set their personalized entrance music, switch on their lights and AC before they even enter the room, and even play their favorite movie.
Location-based smart home tools are evolving, and how!
In conjunction with the Internet of Things, geofencing can help users set up individual devices, using routines to trigger actions with multiple devices.
Geofencing works through the location option when creating a routine. Not only can users control their smart home devices, but they can also teach them to have specific skills.
#3 Restaurants: Send timely notifications to diners
Restaurants can gain a competitive edge via technology and data-driven method using geofencing to amp their marketing efforts and help gain more customers.
Geofencing helps restaurant owners target a particular audience set within a specific boundary and even help them deliver the exact content and offers.
Here are a few ways geofencing can help both restaurant owners and customers –
Trigger time-sensitive push notifications and alerts in a customer’s smartphone when they step into the boundary to increase sales.
Drift customers away from the competition with relevant offers
Increase local sales by sending promotions who enter the restaurant territory with limited time offers and personalized advertisements
#4 Amplify user engagement with location-based marketing efforts
Competitive tactics have been implemented widely and geofencing is a valuable resource for dynamic B2B marketing in various industries.
Starbucks is famous for running location-based mobile marketing campaigns by triggering push notifications that list detailed promotions, close-by stores, and even offer internet-based deals to nearby app users.
Geofencing for marketing purposes is a powerful tool to promote user engagement and increase foot traffic in a seemingly spontaneous way.
Geofence-based marketing campaigns can capitalize on rich notifications to promote social sharing and request quick access for feedback to boost brand success. Some brands are notoriously popular for setting up geofencing around their competitors to push incentivized content to their followers with the ultimate goal of redirecting them.
With most users receiving irrelevant content on their phones, brands that creatively utilize the power of geofencing to push attention-grabbing notifications relevant can help amplify their business, ultimately increasing user engagement.
Yaniv Masjedi, the Chief Marketing Officer of Nextiva says, “As a service provider of telecommunications solutions, our company can’t provide our services to some remote and far locations. Geofencing helps us control which audience sees our ads by limiting its scope to viable users. Doing so helps us not waste advertising spend on users that can’t use our service.”
Brooklyn Museum has leveraged geofencing to serve information to its visitors accordingly. When a visitor is outside the museum, the app displays working hours, directions, exhibitions, and events information.
When the visitor enters the museum, the geofencing app presents the ASK activity front and center to learn about each art piece.
Not just that, several theatres and museums in The Netherlands have also started switching to geofencing technology to promote galleries and shows.
In popular tourist spots, tracking important events gets tedious.
Museums can have an added advantage by using geofencing to create a virtual guide throughout the building.
Spotting a particular art piece or to learn about a certain historical work can be difficult. A location-based notification system using geofencing can help museums and theatres increase foot traffic by pushing relevant notifications and discounts.
#6 Assist patients in hospitals
Healthcare providers and local governments can utilize geofencing to their maximum advantage by setting up geofencing boundaries at relevant points.
According to researchers at UC San Francisco, location-based apps can be used to help track and manage care for thousands of patients who suffer from chronic diseases and possibly even provide feedback.
Healthcare providers can use geofencing for –
Assessing the quality of care of patients as well as the efficacy and adverse effects of various therapies
Geofencing apps could be a potential resource for tracking medical records and reduce the error of retrospective reporting
Help regular visitors and hospital staff with in-hospital directions to get to their wards without much hassle
Keep track of patients with their critical disease and receive helpful information to help them with their recovery process
Follow up with patients by reminding them of their next visit or asking them for feedback
#7 Increase event attendee foot traffic at events and conferences
The geofencing opportunity to event organizers and marketers is far more excellent than their counterparts. Beyond just serving location-based ads over a set period at the event, geofencing also helps remarket to visitors around the geofence for weeks after the event.
When a geofence is set up around an event or a conference, event organizers can create significant revenue streams by allowing event sponsors to target their event attendees with their advertising.
Some of the advantages event organizers can benefit from geofencing are –
Help event attendees get to their favorite booth or area of the event by setting up virtual guides and directions within the venue.
Offer geofencing packages to exhibitors as a digital solution to boost foot traffic to their stands by promoting their freebies and discounts.
Boost engagement by sending welcome and goodbye messages to event attendees
Engage with event attendees by sending push-notifications about the event headliner, what the event holds, and even by offering them free entry to the next occurrence of their favorite speaker
Jonathan Alonso, a Marketing executive at CNC Machines says, “Geofencing has worked for us specifically when it comes to trade shows. We are a national company which does its business primarily online, But in trade shows Geofencing has been a great way to attract booth visitors. We have seen a 56% increase in email sign ups at tradeshows when adapting this technology, including success in social media following.”
Studies suggest that when a user isn’t surfing the web on their phone, they are likely to spend 86% of smartphone time using apps. Geofencing can be the key distinguisher in targeting the right audience that matters the most to any company.
Geofencing technology is an excellent tool to reach local customers and conversions with personalized and timely offers. Geofencing has multiple applications from mobile marketing to IoT; geofencing provides context to device location to help the user experience.
With the ability to hyper-target prospects in a specific geographical location, a business can engage with its prospective customers better than their competitors.
A well-targeted geofencing campaign is a great way to build a local, loyal customer base that effectively engages with any brand.
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