A concern that many GPS tracking companies have is related to generic GPS devices and basic or free tracking platforms. They might fear that this type of hardware and software will deprive them of potential customers or that their current customers will opt for these more economical solutions. We've written this blog post to inform you about the role of this technology in the industry and whether it poses a threat to your company's growth.
Table of Contents
1. Generic GPS and Free Platforms
2. Affordability Remains the Deciding Factor
3. Features of Generic Devices and Platforms
4. Do These Users Need Convincing to Choose a GPS Tracking Company's Services?
Generic GPS and Free Platforms
Technology becomes more accessible to the general population over time. This also applies to the GPS tracking and telematics industry. Today, it is possible for the end consumer to purchase a GPS tracker online, install it on their vehicle, and use the platform offered by that device.
Does this make GPS tracking companies lose customers? While it may seem so, it's not the case. While small fleets are not the ideal customer for larger tracking companies, for those who are just starting, they represent a base of potential customers who will eventually need more comprehensive, reliable, and robust services as their own business grows. As for private vehicles, from our experience, they are not the market you should target to make your company grow.
Affordability Remains the Deciding Factor
So, what do we mean by generic GPS devices? We refer to low-cost devices from unknown manufacturers, which generally connect to a basic platform. Just take a look on Amazon, Mercado Libre, AliExpress, or other online sales platforms, and you'll find them: affordable GPS trackers that can connect to free tracking software.
Even though their installation and setup are not always easy, and they lack any form of support, it's challenging to compete with the low prices of these devices. Mass production and the emergence of new manufacturing centers will continue to drive cost reductions, so it's expected that the number of these devices and generic platforms will increase.
Features of Generic Devices and Platforms
These types of GPS trackers offer some basic features like satellite tracking, route history, sending alerts and notifications, creating geofences, and the ability to track assets from a mobile device. For small fleets of two or three units and for individual drivers who purchase these devices and platforms, these features may be sufficient.
However, they commonly have limitations and operational issues: they send incorrect data, the location is not precise or is intermittent, the platform is neither secure nor reliable, so sometimes you can log in, and other times you can't. They don't receive alerts, don't detect geofences, and more.
Despite this, these features are adequate for those who use these devices initially: end consumers or businesses with a few vehicles whose operations don't yet require a more robust solution. So, are these types of devices and platforms a threat to GPS tracking companies?
We believe you don't have to worry about end consumers or small businesses using these platforms. While some companies opt for these solutions, there will come a time when they realize their limitations (if they don't already) and as these companies grow, they will need the services of a GPS tracking company like yours: with a robust platform, reliable technical support, and solutions that will even help their business grow.
While it may seem like all of the above works against GPS tracking companies, we believe the opposite is true: this type of technology brings the small consumer closer to the tracking and asset telematics industry. The proliferation of generic GPS devices has increased general awareness of GPS tracking technology and its benefits, contributing to its adoption in various fields.
Do These Users Need Convincing to Choose a GPS Tracking Company's Services?
So, more than a threat, this type of technology can be something that pays off in the long run for GPS tracking companies. In conclusion, here are some positive aspects of end consumers using basic platforms:
- Expansion of the customer base: The availability of generic GPS devices and their platforms allows a broader and more diverse audience to access GPS tracking. This highlights the need for a robust and reliable service, which means that GPS tracking companies have the opportunity to reach new market segments, including small businesses and entrepreneurs.
- Educating the market: As more people adopt generic GPS devices, greater awareness of the advantages and possibilities of GPS tracking is created. This can educate the market in general about the capabilities of this technology and pave the way for future adoption of more advanced solutions.
- Special features and added services: While generic GPS devices may meet basic tracking needs, GPS tracking companies provide added value through customized solutions, an innovative and competitive GPS tracking platform, personalized post-sale support, one-on-one technical support, etc.
More than a threat, these types of devices and platforms can be an advantage and something that benefits your GPS tracking company. It doesn't matter if small fleets purchase generic GPS devices, as they will find that such services do not allow efficient management of a larger number of assets. The same goes for small businesses or entrepreneurs; after realizing how essential GPS tracking is for their operations, they will recognize the need for more robust options, and they are likely to have more specialized needs as their companies grow.
It's inevitable that free or low-cost solutions will continue to exist, so you don't have to worry about the emergence of these devices and platforms and their user base. Your GPS tracking company's services will ultimately attract customers whom you can help unlock their full potential with the solutions you provide.
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