How Location Intelligence Can Assist You in Developing a Better Business Strategy
As a business owner, you likely understand the importance of having a well-developed business strategy. After all, your business strategy will guide your company’s decisions and actions, helping to ensure that you achieve your desired results.
But did you know that location intelligence can play a role in developing a better business strategy? In the contemporary world of smartphones, companies are using a new form of data – geolocation or spatial data.
This article will discuss location intelligence, examples of where it is valuable, and how location intelligence helps develop a better business strategy.
Location Intelligence? What are its examples?
Location intelligence is a type of data analysis that considers geographical factors. This information can improve your understanding of your customers, your competition, and other essential aspects of your business.
You might use location intelligence to understand your customers’ spending patterns. Do you run a retail store? Do they tend to live in a certain area?
You can use location intelligence data to understand where your target customers live and work. This information can help you better decide where to locate your store, what type of merchandise to transport, and how to best market to your target audience. This information can then be used to develop targeted marketing campaigns that reach your target audience where they are most likely to be receptive.
Location intelligence can also be used to understand the competition. Where are they located? What type of customers do they serve? This information can help you develop strategies to better compete against them.
In addition, this technology can be used to track and manage assets in real time, which can help improve your operations’ efficiency and reduce losses due to theft or damage.
Moreover, location intelligence can identify and repair important infrastructures, such as power lines or water pipes. This information can help reduce the negative impact of outages and improve the safety of the overall community.
How can Location Intelligence Improve Your Business Strategy?
According to self-storage Sussex, the location of customers is an essential piece of data as it helps predict consumer behavior which can be applied to improve business strategies. Following are some ways how it happens:
Meeting Consumer Demand
A good business strategy must be customer-centric to succeed in today’s world. With the increased technological advancements, customers have become more demanding and have higher expectations. To meet these expectations, businesses must understand their customers better and create strategies based on their patterns.
To understand the patterns, you need to visualize large data sets. Using a data mapping tool lets you know where things happen and why which helps you plan for future events accordingly. Carto’s data mapping tools and software allow you to collect spatial data, analyze it and share it with the relevant stakeholders.
For instance, if a customer visits a particular store frequently, they are interested in the products or services offered by the store in that location. In such a case, the store can use the data to send them a loyalty card to show the customers that they are valued.
Similarly, if a customer visits the same restaurant, it indicates that they like the food served there. The restaurant can then focus on replicating its menu and service to other franchisees to help grow its business.
On the other hand, if a customer never visits a certain store or location, it could indicate that they are not interested in what that store has to offer. In such a case, the store can focus on improving its products and services or try to attract a different target audience.
Improving Customer Engagement
Customer engagement is a crucial aspect that needs to be considered while devising a business plan.
By understanding the location of customers, businesses can send personalized messages and offers relevant to their current location. For instance, a customer near a store can be sent a coupon for the products they are interested in. This can help engage the customer who is likely to purchase the goods.
Similarly, businesses can also use location intelligence to send push notifications to customers about special offers or deals available in their area. This is a great way to attract new customers and increase footfall.
Improving Operational Efficiency
Operational efficiency is another important aspect that is part of a successful business plan. Businesses can optimize their operations by analyzing the movement patterns of customers. In this way, they can ensure that they can meet customer demand.
For instance, if a business knows that a certain area is prone to heavy traffic, they can schedule their deliveries for a time when the traffic is light. This is a very smart way to ensure that the products reach the customers on time and reduce delays.
Spatial data can also be used to create efficient delivery routes. In today’s world, where fuel prices are constantly skyrocketing, data is used to help plan the delivery of goods using shorter routes with less traffic. This helps businesses reduce fuel costs and also deliver the products on time.
Phi Dang, the business coach and entrepreneur, encourages business owners to use location intelligence to understand footfall patterns in their stores. This helps them plan staff and ensures that the store is appropriately staffed. You can help reduce customer wait times and improve the overall customer experience.
Measuring ROI accurately
The key to knowing if a business plan is successful is measuring the return on investment (ROI). Online marketing campaigns can be tracked most of the time. For instance, a social media advertisement campaign’s ROI can be assessed by dividing it by the number of leads or sales by the advertisement budget.
However, some customers who saw the advertisement online but make the purchase offline are off the radar. In other words, they cannot be tracked. As a result, the apparent ROI results might not represent the actual one.
Location intelligence makes it easier to measure the ROI of the activities that take place offline. This is done by analyzing customer data to know where they come from, when they visit the store, and what route they take.
Online advertisements are usually set for a particular location, and tracking the number of sales in the retail outlet in stores in that area might help measure the effectiveness of the online marketing spend. The data can then be compared with the output of the retail store in the area or city not targeted in the online marketing campaign.
This information can help businesses make changes to their business strategy to make them more effective.
Helps in Decision-Making in Unusual Circumstances
Location intelligence can help businesses make the right decisions in difficult or unusual circumstances. For instance, different areas had varying lockdown restrictions during the peak period of Covid-19. Through location intelligence, companies could make effective decisions during this period.
An example of a company that made use of this technology is Starbucks. The company realized that it had to increase its delivery facilities in locations where the physical outlets could not be opened due to the restrictions.
Starbucks used previous data to understand at which locations customers preferred pick-up options and from which stores would delivery options be the most feasible. The data helped Starbucks reposition the store locations to make delivery and pickups more effective.
Summing Up the Things Learnt About Location Intelligence
As you can see from the points discussed above, location intelligence can be a powerful tool. Geolocation data is the new frontier for competitive advantage, and the potential for this data to improve business strategies is limitless. Businesses need to embrace this technology and use it to create a more customer-centric strategy.
Some benefits of using location intelligence for business planning include effective decision-making under challenging situations, measuring the ROI of marketing campaigns, improving the operational activities, helping businesses understand their customers better, and identifying new growth opportunities.
Incorporating geolocation information can help businesses develop a suitable, more targeted strategy. In short, if you are not already using location intelligence in your decision-making, now is the time to start.