Location Intelligence: What is it and Why is it Important for Your Clients’ Businesses?
July 19, 2018 | Contributed by: Kelly Shelton
Location data about customers has always been important for businesses. Now, however, we’re able to take it a step further with location intelligence. Location intelligence tells you more than just where your clients’ customers live and work. It enables you to see where their customers spend time, when, how long and more. This is thanks to the combination of widespread mobile use and big data.
How Does Location Intelligence Work?
Location data alone means little. With location intelligence technology, though, it is possible to transform this data into meaningful insights. For instance, software can generate real-time maps and other visualizations. Many have interactive features, allowing you to filter the data to just see what matters. This way, you can detect patterns, distributions and connections.
To receive such insights, you (or your client) need to partner with a location intelligence vendor. Each vendor uses different technology platforms and data sets, which influences the quality of the intelligence you receive.
Who Can Benefit from Location Intelligence?
Certain types of businesses are most likely to benefit from location intelligence and some of your clients will benefit more than others. In particular, this includes businesses with physical locations. Location intelligence is also useful for businesses whose clients have physical locations and for online businesses whose biggest competitors are offline.
Why Use Location Intelligence?
Without location intelligence, it is often impossible to track customers as they move off the Internet and into the physical world. This means that you or your client are unable to track customers who research online but purchase in store.
In contrast, with location intelligence, you can know when a customer completes a purchase in store and when it occurs. Plus, you can know if the customer nears a client’s store and decides not to purchase, heads to a competitor, or does something else. This helps to build a more complete picture of customer journeys.
It’s Fast Becoming a Major Trend
Often, to discover the next big ideas, the best place to look is at large corporations. Already, many such businesses are adding location intelligence to their strategies — for instance, Domino’s Pizza. It is not yet as common for small and midsize businesses, but adopting the technology early could put you at a major advantage.
It Relates to Business Intelligence as a Whole
Location intelligence is not just about where customers go; when you combine it with other data, you can make key inferences. For instance, you may find that a particular subset of a client’s audience is not averse to poor weather conditions. Another demographic may stay at home during particular sporting events.
How to Use the Insights
Now you know who can use location intelligence, and why such businesses should want to, the only thing left is to learn how to use it. In fact, location intelligence has a number of possible applications.
Analyze Your Customers
All the data you gather through location intelligence will allow you to better analyze your clients’ customers and define their target audiences. You’ll find out more about their lifestyles, how far they are willing to travel for a purchase, and when they tend to make offline purchases.
Similarly, you can look at who makes up your clients’ competitors’ target audiences. Find out how these customers may differ from those of your clients and determine ways you could improve marketing practices to encourage them to choose the brands in your portfolio.
Better Target Your Ads
Customers feel overwhelmed by ads — a recent survey found that half of all consumers think websites should have fewer ads. It doesn’t help that many of these ads are irrelevant. To cut through the noise, you need to help your clients better target their ads. Location intelligence helps make this possible.
This use of location intelligence is particularly useful for retargeting — often necessary when a purchase requires some decision time. You can show an offer again when location activity suggests that the prospect is thinking again about completing a sale.
Find Expansion Opportunities
Finally, location intelligence can help you grow businesses. It can show you where the best place to open a physical store or new location would be according to where your client’s customers spend time. You can also look for opportunities to reduce journey time for their customers and improve customer retention.
Do you want to help your clients gain a competitive advantage, improve their marketing campaigns, and convert more customers? If your clients’ operate in the physical world in any way (or if their top competitors do), add location intelligence to your online marketing services and take advantage of customer data that already exists but is currently going unused.