"GIS provides a framework for data that gives it context and meaning — that's why it is called 'location intelligence.' — Jack Dangermond, Founder of ESRI
Historically, companies have used geospatial data and predictive modeling for site analysis or determining where to locate brick-and-mortar stores. However, opportunities within geographic information system (GIS) technology have since evolved, opening doors for businesses of all sizes.
For marketers, the focus is always on customers, which is why customer behavior, demographics, and purchasing patterns are crucial. Based on the possibilities, you can now use spatial data and geospatial analytics to develop personalized engagement and positive customer experiences.
You can also identify potential new customers more accurately while profiling existing customers. Here is why you should consider using geospatial analytics, plus ways to leverage the data to optimize your marketing strategy.
The Value of Geospatial Analytics
Research shows that the geospatial analytics market should reach $77.1 billion by 2028. Other estimates report an anticipated market worth as much as $256 billion by 2028. Several technologies fuel this growth, including machine learning and AI-based solutions, resulting in nearly endless possibilities.
With geospatial analysis becoming the standard for market analysis, you risk being left behind if you do not consider this approach. Your competitors are diving deeper into geospatial analytics, but that's not the only reason to consider spatial data.
- Information is accessible and cheap. So much data is available, from browsing history to spending habits and personal data, and the ability to analyze this sea of data is so valuable. When you discover the power of geospatial analytics concerning targeted, usable results, you'll see the quality of data available to you without spending a lot to obtain it.
- Creating targeted marketing campaigns is more critical than ever in today's fast-paced environment. The more specific and personalized your campaigns are, the higher the probability that your marketing material will catch the attention of your intended audience. Once you begin to tailor your campaigns, you'll supercharge your ROI.
By adopting a spatial data strategy, you can harness the power of place. Using the latest technology, including location sensors, mobile devices, and social media, you can collect data relating to time and location. This data can fuel more effective marketing campaigns and programs based on actionable insight. Spatial data will simplify complex relationships, enhance forecasting, and refine marketing initiatives.
In marketing, you can use spatial data to develop more precise campaigns and personalize customer experiences. These benefits can be achieved through location-based segmentation, push notifications, targeting advertising, personalized recommendations, and more.
How Marketers Are Using Spatial Data
Omnichannel marketing has shown to significantly increase revenue when done correctly. So, whether you're focused on direct marketing strategies, digital marketing strategies, or a combination, here is how to use spatial data and geospatial analytics to optimize your marketing campaigns.
Consumer Profiling
You need to know who your best customers are to reach your customers better. What are their buying patterns? What about their preferences? Access to these answers will help you better predict their behavior to create more effective cross-selling campaigns, maximize loyalty programs, achieve better responses to promotions, benefit from more precise prospecting, and more.
To build in-depth consumer profiles, use your first-party data. Focus on demographic, behavioral, and activity-related data to better understand exactly who your consumers are. This approach will allow you to drive greater engagement and ensure better customer experiences.
Segmentation
When you have a sea of data, you can begin to separate customers into groups based on similar purchases, likes, age, and other criteria to improve ongoing campaigns. Segmentation is also highly effective when you're aiming to enhance loyalty program success — for example, improving the effectiveness of your digital punch card programs.
The ultimate goal here is to collect and analyze available data so that you can personalize your campaigns or programs. You can also save time by understanding your customers' needs more efficiently. The result is more engaging campaigns and loyalty programs that build a returning customer base.
Related: How to Keep Loyalty Members Engaged
Engagement
Today's consumers want seamless, personalized, omnichannel experiences. Research shows that 66% of consumers expect companies to understand their expectations and unique needs, and 52% expect personalized offers. To keep up with consumer expectations, you must invest in engaging, relevant messaging.
One highly effective strategy is to send messages using geofence technology or beacons to target individuals near or in your stores. To achieve this, you can invest in a proximity marketing platform to reach the right consumers at the right time. For example, when consumers are in your store, you can send them automated, personalized push notifications.
The data you collect using these technologies is invaluable when the goal is to amplify engagement.
Visualization
When you visualize your data more, you can gain deeper insight into what's working and what areas require improvements. The goal here is to identify performing and underperforming areas so that you can optimize your marketing budget and drive higher conversion rates. You can also uncover new market areas to expand. Whether you want to adjust communications, improve in-store displays, or enhance decision-making, the easier it is to access and analyze your data, the more you can do with it.
Analytics
The combination of spatial data and analytics drives transformation within modern businesses, especially when using location-based data. In today's world, consumers are constantly connecting their devices to the internet, creating location intelligence. From supply chain management to customer buying habits, there are so many opportunities made possible because of geospatial analytics.
As you continuously collect relevant data, you can then lean on the power of analytics as the basis for other business functions, such as site analysis, customer service, or marketing. The more you know, the more informed your business decisions will be.
How you use your data will depend on your business and goals. For example, you can use analytics to track foot traffic, in-store visits, dwell times, redemptions, campaign performance, and a wide range of other data for enhancing customer experience. As you continue to track these variables, you can make modifications to achieve better results.
Read more: Understanding Location-Based Analytics
Combining Geospatial Technology With Effective Marketing Tactics
The benefits of geospatial data analysis are clear. However, leveraging the data collected is often easier said than done. It is estimated that approximately 2.5 quintillion bytes of data are generated daily — much of which contains location references.
It would help if you incorporated appropriate marketing solutions to harness the power of data and geospatial technology. Once you implement these solutions, you'll be able to easily connect with consumers, drive engagement, and build a community of loyalists.
Proximity marketing is a major part of the puzzle. However, many products and tools available will help you deliver an optimal customer experience. The basis of these tools and solutions is a mobile marketing strategy.
Are you interested in exploring the world of geospatial analytics and the power of mobile marketing products? If so, please request more information to get started today!
To dive deeper into this topic, we invite you to read the following resources: