More and more businesses have deployed location analytics in the past few years to optimize marketing campaigns, launch up sell campaigns, open new stores and much more. When location data are combined with existing consumer information, these companies can gain indispensable insights about their customers’ behaviors.
SOURCE: DRESNER ADVISORY SERVICES 2018 LOCATION INTELLIGENCE MARKET STUDY
Similar to the emergence and wide-scale adoption of web analytics, location analytics has now become a staple for businesses in order to facilitate a better design, manage and measure online & offline consumer trends. In the near future, it could become a make-break factor among businesses which possess a competitive edge and those who lack one.
So how can Location Analytics help drive success to your business?
1. By understanding your customers better
The advent of location intelligence can bridge the gap between consumers and companies. By analyzing and visualizing data on maps, businesses can get better business insights and make decisions that are more informed. Companies have on-ground information about the consumers since they know their buying behaviors and conditions within different demographics. Businesses are able to cross their own customer’ data with third party and demographic data to create to make well-informed decisions.
2. By measuring competitors’ performance using Location Analytics
Location Analytics is a viable tool of analyzing the performance of competitor(s), in terms of business and geographic considerations. It can essentially help businesses tap information that could suggest them areas of improvement and ways their rivals are currently succeeding in the market. It could detail vital information that could help a business save key expenditures by furnishing information about locations where stores have maximum footfall and spots where they are likely to fail.
The “where” factor plays a very important role here. “Where are my competitors?”, “Where are my customers?”
If we talk about retail for example, it’s important to see where the competitors currently operate, how long they have been open or which are the locations where they closed stores.
If the competitor is a larger, more well-known brand it probably doesn’t make sense to open a store nearby but if they are less well-known and their activity is stagnant, then it might be just the right location for you.
Location analytics can help you answer these questions by analyzing and visualizing your commercial and demographic data on a map.
3. By tapping into new markets using Location Analytics
Location intelligence is changing the fabric of our present as we know it. They accomplish this by giving customers the products they need, when they need it and where they need it. It’s crucial to know the buying behavior of the inhabitants of the countries you wish to target. This information can determine your services and products’ prices. If the consumers have a high income and their purchase behaviors show a tendency towards expensive, high quality products, it would be a mistake to enter this country with a low priced product as people might interpret it as a sign of bad quality.
Another important data is demographic data. Just imagine, you want to distribute a new type of drug for babies, but the country you target has a very low birth rate. This failure can be avoided by using Location Analytics tools.
These tools combine demographic data with consumer data and other 3rd party data sets that can be then analyzed and visualized on a map to give you a more accurate result on discovering an untapped opportunity.
4. By optimizing marketing campaigns
Geo-marketing is helping businesses better understand where their target customers are and where they can launch their campaigns most successfully.
Just imagine, you want to promote your new home insurance but realize after a few weeks that the area you targeted is full of home rentals instead of home owners. Your marketing efforts would be wasted and you would have to look into other areas where you think your promotion would succeed.
Furthermore, geo-marketing is a highly rewarding solution to launch dynamic marketing campaigns to target particular consumer segments. Prior to designing a geo-marketing campaign, a business interest needs to factor in the consumer segments that surround their point of sales.
SOURCE: Grupom Blog
For the marketing teams, it empowers them to design campaign strategies with finesse since location intelligence gives them indispensable data about the placement of their customers and how to target those using tailored promotional messages. By using this strategy, they can launch street marketing campaigns that target consumers on-ground (billboards and others) and circumvent expenditures on testing markets.
Last but not least, the tool helps in attribution analysis. It can bring particular regions, countries, cities at the forefront where a specific promotional scheme or marketing campaign will be most successful. This is a vital aspect for the brands that operate on an international level, as they need to keep their foreign markets insight and design marketing campaigns based on localized needs.
In this era, the key to the success of a business is not necessarily based on bigger budgets, but better tools and technologies. A successful marketing is now a blend of intelligent product promotion and smart targeting of the consumers at large. It is a key competitive edge for emerging and established businesses alike, levelling the playing field to a certain extent. Mapidea is changing the rules of the game. Are you ready to reap the rewards we promise? Click here to request our demo.