What Is Geofencing Technology? How Businesses and Consumers Can Leverage Virtual Perimeters

What is Geofencing Technology? How Businesses and Consumers Can Leverage Virtual Perimeters

dmccarty@connecteddealerservices.comBlog

Have you ever been shopping in a mall only to later receive an ad on Facebook for the exact store you entered? How about when you attend a public event and get a notification prompting you to download their featured app? If you answered yes to either of these – or simply have a smartphone – you likely have already experienced the power of geofencing technology. 

Many industry leaders stress and advocate the importance of geofencing technology in marketing, inventory management, and protection. Today, the global geofencing market is poised to grow by 1.5 billion over the next two years. Having this technology at your fingertips can open up a world of possibilities for you or your business it utilized correctly. Let’s dive into everything you need to know about geofencing and the benefits it offers.

What is geofencing?

Geofencing is the act of establishing virtual perimeters within a geographical area. When an individual crosses a designated perimeter, users utilizing geofencing technology will be alerted via automated messaging on their mobile devices or other business management systems. 

This technology is accomplished via the use of Global Positioning Systems (GPS) and Radio-Frequency Identifiers (RFID). The use of these systems enables any user to designate geographical boundaries in the form of either a radius or a more precisely defined polygonal area. These robust features are beneficial for both businesses and the everyday consumer.  

Geofencing Applications: Businesses

The capabilities of geofencing are currently applied to a variety of industries including marketing, automobile sales, shipping, and more. Whether you’re a car dealer managing a lot or a marketing manager who is setting up market-relevant boundaries for advertisement placement, geofencing technology can be used to accomplish your tracking-relevant goals.

Some well-known businesses that employ geofencing technology include Uber, Arlo, Starbucks, The North Face, and BMW. These companies adopt the technology to fit their essential business processes. 

How Geofencing Technology Can Be Lucrative for Automobile Dealerships

Automobile companies such as BMW have capitalized on the lucrative aspects of vehicle geofencing. Pioneering the automobile industry’s use of vehicle technology, BMW installed geofencing to optimize passenger safety as well as inventory lot management

The automobile industry can utilize this technology by implementing a geofencing service that enables automobile dealerships to:

  • Track and manage inventory.
  • Place geographical limits on test drivers.
  • Communicate vehicle movement to all designated employees.
  • Minimize car theft
  • Provide billable value to consumers by selling the technology already installed.

Geofencing Applications: The Individual

Geofencing technology is also applicable to individual day-to-day functions. Whether you want to place perimeter restrictions on a new or older driver or ensure that your kids arrive at school on time and without encountering any roadblocks, vehicle geofencing can provide peace of mind. If your loved one takes a wrong turn and enters an unsafe area outside of the established perimeter, the users will be automatically notified and can respond appropriately. Geofencing delivers enhanced safety and supervision while simultaneously restoring driver freedom. 

Elo GPS Geofencing Technology

Elo GPS is a connected car application that provides a wide variety of solutions, including advanced vehicle geofencing technology, smart alerts, vehicle theft protection, and more. Our services are applicable to the automobile industry as dealerships need to track, zone, and manage inventory. Elo GPS features are also applicable to individual consumers who want to place an extra perimeter of protection around their family. 

To learn more about geofencing technology or to find out more about how Elo GPS can fit your dealership or customer needs, contact us today.