geofencing for location data

Putting location data to work with Geofencing

Fences are somewhat part of our everyday lives as humans. They exist to create a boundary between elements, areas and humans. Fences are useful as they allow easy segmentation, the grouping of elements and identification of properties. Particularly, in cities, fences function as a demarcation between houses and offices. Within a region, fences can be used to separate and identify addresses. As crucial as fences are physically, they also occur as a digital location-driven concept called Geofencing. In this article, we will explore the meaning of geofencing, how it works and how businesses are leveraging the technology.

What is Geofencing?

Geofencing is a location-driven technology that allows you to define a virtual boundary around an area or a physical location. It functions by triggering an action when a location-enabled device enters or exits the virtual fence.

The technology of Geofencing combines several technologies with foundational location capabilities. GPS, Wi-Fi, and cellular data are integrated to determine the device’s location. The crucial strength of the technology remains the identification of the encroaching device location at various distances within the geofence. 

Technology Implementation

A GPS location must have a virtual perimeter created around it in order to use a geofence. The boundary could be something as straightforward as a 100m buffer on Google Maps or as intricate as an API in a web or mobile application. A geofence can have a range of hundreds of kilometres.

Users of location-enabled devices can also set geofences. Users can choose a location to set off an alert in mobile applications like Reminders. An action is started when a device enters a geofence boundary. A security alert system may be activated, and a push notification or email may be sent, depending on the use case.

How businesses are using geofencing

By collecting and analyzing fenced location data and device location data, companies can identify common behaviours for fence interaction and take necessary action. This more profound learning of the audience’s daily movement helps the business deliver precise notifications and messaging. Additionally, customers can receive location-specific deals, promotions, and reminders to strengthen loyalty.

By 2023, geofencing is expected to have a $2.2 billion market size, according to Market Research Future.

Targeted advertising and proximity marketing

Geofencing has become an integral part of advertising and marketing. With over 92% of mobile devices being location-enabled, delivering location-based advertisements has never been easier. 

Businesses send push notifications to users nearby and around their stores on offers. For example, Starbucks implements a geofence around their outlets. The business combines geofence with targeted ads to ensure they get customers in through the door. Location-based discount code, buy one get one free and personalised offers are ways Starbucks use a geofence to market to customers.

Geoadvertising and improved customer experience are ways e-commerce and physical stores use geofencing technology. For example, a clothing store can send a push notification to customers who are nearby, offering them a discount on a specific item.

Pricing and Customer experience

Businesses are using geofence boundaries for dynamic pricing and custom experience for users. The little details that keep customers satisfied have been improved with geofencing. Ride-hailing companies such as Uber use geofencing technology to deliver personalized information to customers. Users get important information on which vehicles are available at a given location. The distance between them and the rides is also estimated so users know their waiting time. Ride-hailing companies also use geofencing to implement dynamic pricing based on the demand within a boundary.

In its 2020 report, Bolt reported that it used geofencing technology to provide voice messaging guidance to its riders when entering no-riding, slow speed and no-parking zones.


Organizations are implementing a geofence boundary to monitor and secure physical locations, such as construction sites, warehouses, or schools. When someone enters or exits the boundary, an alert can be triggered, notifying security personnel.

Businesses are using the geofence technique to enforce security and access control. With smart security systems that trigger alarms when encroached, high-security environments now use the technology to monitor movement in and out of a boundary, 

Location Data collection

The geofence boundary is used by companies that collect location data to establish quality control in their operations. Dynamic boundaries are being used by data collection businesses like Milsat to guarantee field mappers follow the best procedures.

Milsat uses geofencing in conjunction with other engineering technologies to guarantee that data collectors only collect data in the area that their location-enabled devices can read. The business and its clients’ data standards have been effectively standardized as a result of this.

Geofencing and User Data

Despite all of its advantages, geofencing still raises privacy and user data concerns. Location data is tracked in real-time to obtain immediate data when devices approach a fence. The gathering and use of consumers’ personal information worry them as well. Businesses that ignore user data concerns run the risk of losing customers. As a result, companies must be open about their practices regarding the tracking of user location data and give customers a clear understanding of how their information is used.

Geofencing as a technology has countless applications. Businesses must, however, have the resources and know-how to manage and analyze huge amounts of location data due to the technology. Businesses without the necessary skills may struggle to implement geofencing successfully because it can be a significant time and resource commitment.

Acquire Geofence data with Milsat

With our range of native products powered by modern technology, it’s fast and cheap to acquire the exact geofence data your business requires. Simply determine your business data requirements and Milsat will deliver the best-fit solutions for your location data.

Our data policies are in accordance with the NDPB regulations. With our effective data acquisition strategies, you can get all the data you require at once.

Find out how we can assist you in gathering the geofence location information you require. Call sales at +2348181500002.


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