Location data and analytics are helping businesses grow in a number of ways, from forecasting the ROI of new opportunities to helping marketers better understand their customers. With location insights, business owners are able to create strategic marketing plans and maximize their ad spend with confidence and ease.
No longer do companies need large GIS (geographic information systems) teams to tap into the value of location intelligence, as innovations in data aggregation and analysis have democratized much of what previously required a specialized data science team.
Savvy business owners are positioning themselves to be ahead of the mark by utilizing location data to create a competitive advantage for themselves and make better business decisions with fewer risks.
Having the ability to reduce costs, improve customer experiences, and enhance community engagement with location intelligence is a huge advantage for brick-and-mortar businesses that have been threatened by the boost in online sales.
Changes in technology over the recent years have pushed location intelligence into mainstream enterprise technology landscape. This has led to spatial mapping and software landing in the hands of, and becoming more user-friendly to, everyday users.
With these benefits in mind, here’s a list of five ways to grow your business with the help of location intelligence.
1. Understand the nearby audience
Location intelligence gives us a great deal of insight when it comes to the potential that is in our backyards. Sophisticated data now allows us to target potential consumers that walk by a business. We can understand things such as where they were recently and the direction that they are headed once they leave the targeted area. We are also aware of the habits and behaviors of certain clusters of people within a certain radius, as well as their likes, dislikes and pain points. Embracing location intelligence empowers decision makers as it gives them a glimpse into the market that they could potentially tap into long before appropriating any marketing spend.
2. Target your local competitor’s customers
While tapping into the behaviors and spending habits of those within a certain radius is beneficial, things get even better when owners are able to capture data regarding the consumers that are frequenting the storefronts of their competitors. While others are having to guess who they are targeting and how to go about doing so, those that utilize location intelligence have a vantage point that allows them to get ahead of their competition. They understand that relying on proximity alone isn’t the wisest solution. Location intelligence allows us to factor in accessibility, behavior patterns and the bigger picture as it relates to a consumer’s overall journey and objective.
More specifically, competitor targeting aggregates data points to plot out a competitor’s most probable consumers based on spatial, demographic, and behavioral analysis. These insights equip us with tools that allow us to make more informed and actionable decisions.
3. Leverage location performance to manage inventory and offset seasonality
Emerging technologies have enabled decision-makers to access location data that was not previously accessible. Growing more and more robust, location professionals are sure that databases will continue to grow, allowing for even higher levels of understanding. We’ve currently reached a point where we realize that not only can we see and understand what consumers and potential consumers are gravitating to, we can understand their needs and desires as they relate to season and timing. Location data leads to being able to forecast traffic, allowing business owners to more accurately buy and manage inventory before it's too late. This helps to eliminate the chance of huge surplus of overstock at the end of each season, while also ensuring that consumers get exactly what they desire when they desire it.
4. Capture consumers outside of the standard target area
Marketers that are familiar with more sophisticated location intelligence have had access to information regarding their user’s likes, spending habits and behaviors, allowing them to focus on personalization and retargeting. Location intelligence makes it possible to target consumers differently by implementing spatial-behavior targeting that allows us to find clusters of ideal consumers that are outside of the standard geo radius.
Location experts have discovered that consumers are more than willing to travel further to engage in a shopping experience that offers them exactly what they want and/or need in a personalized way. Business owners that capture audiences outside of their normal hyperlocal radius are way ahead of the game when it comes to effective marketing.
5. Eliminate ad waste
Targeted advertising is the best solution for business owners that were previously basing their ad spend on proximity, rather than using location intelligence to pinpoint audiences that were more likely to convert to loyal consumers. Spatial intelligence gives us the ability to be hyper-focused on individuals, their behaviors, likes and dislikes. Previously, marketers did not have the ability to differentiate one target from another.
Accounting for how consumers engage with location enables business owners to think beyond their location and the surrounding area, while allowing them to focus on where consumers actually spend their time. Recent advancements in the use of location intelligence result in more leads and higher conversion rates, making the use of location intelligence a no-brainer.
Growing with location intelligence
There has never been a better time to learn about and invest in location intelligence. This important resource provides a competitive advantage by adding location context, enabling businesses to understand more about their consumers. It provides informational insight that makes it possible to make the best decisions regarding site selection forecasts, location development, risk assessment, catering to consumer’s specific needs.
More and more people are carrying location-aware mobile devices every day. Countless database vendors, BI tools and business applications have begun building support for storing and analyzing spatial data into their products. As a result, business users are becoming accustomed to these capabilities. More uses for location data are being discovered and executed daily. Forward-thinking businesses with solid plans for growth realize the importance of adding and utilizing location technology to their BI and analytics landscape.
In other words, location intelligence is all around us and may very well soon prove the next competitive battleground for businesses everywhere.
If you'd like to get ahead of the curve and add location intelligence to your arsenal today, talk to the Spatially team.
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