Importance of Analytics for Location Marketing

Data Analytics as a tool is being used to revolutionize many industries, especially within the marketing world. Analytic tools are deployed in various ways within the marketing sphere to obtain a competitive advantage and dominate the market. The five marketing elements (also known as the “marketing mix”) of Product, Price, Promotion, Place and People required to position businesses strategically, are all made readily available, easily accessible, and more effective through analytics.

There are two key aspects of data analytics when it comes to achieving marketing excellence: location-based analytics and location-based marketing.

Location-based analytics: With geographical information system (GIS) data coupled with real-time vehicular telematics, businesses can utilize location-based analytics at the local level to speed up decision-making. Location-based analytics utilizes a rich layer of information superimposed on a map to determine areas of demand and the easy/difficult factors that make it possible to fulfil the demand. GIS systems overlay important business information onto a map enabling businesses to identify local features relating to business assets, transactions, and other activities that can easily be overlooked. The use of location-based analytics requires these important areas of analysis: Demographic, Trade area, Competition, Traffic and Site Economics. It relies on geographical intelligence and mapping based on spatial analysis, thematic mapping and observing human movements across different locations over time.

Benefits of Location-based Analytics

1. Decision Making

The use of location-based analytics accelerates the decision-making process for companies across all industries. Location analytics can help integrate your business into an area’s needs and shopping habits, can give you a competitive advantage, and ultimately prevent costly mistakes. Tools like Xtract.io and MapInfo can assist retailers to identify new business prospects and areas where their businesses may be failing. Also, they can decide on making investments in specific locations and potential sale hotspots if they have reliable and precise location analytics data. Additionally, companies can employ location analytics systems to improve warehouse processing, track the most efficient routes, and receive assistance on stock-flow management. The hospitality industry can utilize location analytics to track new and recurring guest foot traffic and understand the number of visitors that utilize the hotel’s fitness centre regularly, as well as how much time guests spend in the hotel lounge and lobby bar.

2. Customer Satisfaction

Companies today obsess over the need to satisfy their customers. Location analytics and insight can help businesses across an array of industries to improve their processes in multiple ways.

a. Understanding Customers

b. Customer Experience

c. Benchmarking

d. Operations

e. Marketing and Ad Campaigns

3. Optimization of Resources Usage

Location-based marketing:

1. Geofencing

2. Geotargeting

3. Geo-Conquesting

4. Beacon Marketing

5. Blueprint Location-based Marketing