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A geofence is, in technical terms, a virtual perimeter that defines areal-world geographical area. In more practical terms, this means thatusers of mobile devices can be detected entering or leaving a particulararea via the GPS data from their smartphone or tablet. At this point,they can then be contacted, via SMS message, email or through a webapplication.
Notable examples of geofencing
Google Local Guides app, which gathers data andphotographs from users, and in return alerts them to nearby events andspecial offers they might be interested in.
Safety appsfor parents that allow them to set up ageofence for their children, ensuring they do not stray too far fromhome without their knowledge.
Employee attendance geofencesset up by businessesaround workplaces such as building sites, to automatically keep track ofwhich staff are present at any given time.
Shops and restaurantsusing geofencing formarketing purposes. Usually to trigger an email or SMS message informingpotential customers of a special offer or new product when they enterthe vicinity of a retail location.
Proximity marketing
The last example of the four is the most common, and of particularinterest to businesses looking for a new way to directly market toconsumers. In conjunction with existing marketing research andstrategies, this can be a very effective way to increase sales volumesby driving foot traffic to specific locations.
SMS was originally the most common way to drive sales throughproximity marketing. This has now been overtaken in recent years bylocation-specific marketing web applications. Users voluntarily sign upfor these apps, giving their consent to push notifications and locationtracking.
Geofencing and the law in the United Kingdom
While there are no specific laws written regarding geofencing in theUK or EU, important aspects of it fall under existing legislation, andanyone looking to utilise it for business purposes must be aware oftheir legal and ethical responsibilities.
Geofencing raises serious issues regarding user privacy and consent. The ICO (Information Commissioner’s Office) recommends the philosophy ofPrivacy by design. Described as “an approach to projects that promoteprivacy and data protection compliance from the start” – rather than anafterthought.
User location data is a particularly sensitive issue in this regard. It is important that gathering this information does not infringe on theguidelines laid out by the1998 Data Protection Act,which amongst other things, stipulates that somebody’s data must only beused for “limited, specifically stated purposes”.
This means that when designing an application involving geofencing,you must clearly and honestly let users know what their location data isbeing used for, and not stray from that original intention.
Next year, the new General Data Protection Regulation comes intoforce, placing an even greater emphasis on user consent and disclosureof what exact information is being held for business purposes. If youare planning to keep past location data records to aid with futuremarketing campaigns, then be sure to inform customers of this fact.
Opportunities and responsibilities
Geofencing can be a great way to keep track of staff, boost sales,and inform customers of relevant information. But keep in mind thatethically, you are entering into a contract with the end user, wherebythey are offered something of value for the use of their location data. And that usage must not exceed the terms of your original agreement.
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