Location data, gathered from customers' mobile devices, is a powerful marketing tool for many businesses. Companies use this information to directly target marketing to them, via push notifications and other means, that's relevant to their location data and shopping experience.
But businesses also use location data for "location intelligence" - something that goes far beyond direct marketing. Companies are already gathering these data, and might as well use them for as many applications as possible.
Location intelligence is booming. An overwhelming 84% of CEOs report that they plan to invest more money in location intelligence over the next three years, and those investments will take a variety of forms. Read on to learn more about some of the ways this tool is transforming how companies like yours do business.
Drilling Down into Demographics
It may seem like a tall order to figure out details about a customer's demographics from location data alone. But many companies are getting creative.
One location intelligence company tried to determine customers' ages using their location data. To do this, they tracked their whereabouts (with their consent, of course) as they went about their day.
They noticed that many of these customers spent a lot of time around local middle and high schools. Travel here fit into one of two patterns: either the customer would go to the school early in the day and then leave in the afternoon, or they would stop by briefly in the morning and then again in the afternoon. They determined that the first group was likely students, and the second group was parents of students.
When they compared these data against store visits, they realized parents were visiting their store far more frequently than students were. When they delivered this analysis to the retailers, stores better understood how their current marketing campaigns were working.
Understanding the Purchasing Process
Marketers know most people take time to make purchases, especially big ones. They may make multiple visits to your store, or visit your competitors over time, as they consider their options and figure out how to balance quality and price.
High-quality location data gives your business information about when and how often customers visit your store, which displays they visit, how long they spend in each display, and how often they return. But location data will also give you information about potential customers' visits to competitors' stores, while they're weighing their options.
By better understanding what a customer's purchasing process looks like, retailers can understand how to make their products more appealing. They'll catch a glimpse of their closest competitors, and start to build a picture of how to make their products more appealing.
Logistics is the lifeblood of transportation and shipping. Companies' success depends on their ability to provide what customers request and expect, as quickly and efficiently as possible.
So it's no surprise that so many companies are turning to location intelligence to make their operations more efficient. The real-time feedback from location intelligence helps businesses learn exactly where their vehicles and cargo are, at all times.
This allows businesses to accurately judge arrival times for shipments and determine reasons for delays. For businesses where maintaining a tight supply chain or ensuring prompt delivery is vital, this has the potential to dramatically increase the business' profit margin.
Location intelligence isn't just for directing ads to customers. It's a blossoming field that's transforming how businesses operate: how they understand their customer base, how they ship items and track cargo, and more. Every business has some application for location intelligence and will benefit from exploring the field in greater depth.