Pros and Cons of Utilizing Geofencing for your Business

Utilizing Geofencing

uuThe term “geofencing” has been coming up a lot lately. It is the newest trend in the technology industry. However, this technology is not for all. There are a lot of businesses wasting their time and resources in geofencing.

In this article, we will discuss the pros and cons of geofencing.

What is Geofencing?

Geofencing is a virtual perimeter that defines a geographical boundary. It is like an invisible pet fence that dissuades your dog from leaving the yard. Geofence tracking is determined by using virtual GPS points. When the geofence has been set in place, the software can send notifications when a user enters or exits the geofenced area.

It may sound cool because it is. However, like any form of technology, it has also its shares of ups and downs.

Advantages of Geofencing

Geofencing has been an effective and proven method by many different organizations, particularly those that work with sensitive information or high-security operations. For instance, a geofence can disable a device containing classified information as soon as the tool passes through a set perimeter. Law enforcement can also use this technology for people on house arrest. Moreover, administrators will be also be notified when an unauthorized person enters a high-secured area using a predefined geofenced boundary.

For mid-range security situations, geofencing is used to alert shoppers for a great deal, discounts, and promotions that are nearby. Restaurants can also use it for advertising today’s special. Ridesharing services such as Uber can use geofencing to notify potential passengers when there’s an available driver in the area. While geofencing is just starting, these are some of the great examples of how it can interact with your mobile device.

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Disadvantages of Geofencing

As geofencing technology becomes widespread, a lot of people are expressing concerns over violation of privacy. In several cases, geofencing can integrate with location-based services. It can automatically check you in when you arrive at a specific location.

Moreover, rumors are circulating in the United States that Starbucks is thinking about building a geofence around each of its locations. This technology would notify passersby that there’s a special coffee drink waiting for them around the corner. It may sound pretty cool. Still, when you live in an area like New York City, you will need to bear the number of notifications you would receive simply by walking a few blocks down the street.

In addition to that, since geofencing requires the app to check the location continually, it uses a massive amount of data. The GPS function of cellular phones uses satellites to locate the user. Still, the app’s location services use the information to drop a pin on a map. Therefore, geofencing means high data bills, limited phone space, and drained batteries, which can result in unhappy shoppers.

In the end, you need to weigh down all the pros and cons of this technology. Geofencing might be great for small businesses, but it might not work for all. Consider all the factors before using geofencing in your industry.