Times when marketing was only based on sending messages to the audience indiscriminately, without distinction, are long gone. We have reached the current refinement point thanks to techniques such as geomarketing, which profit from geographical data and technologies associated with them.
Why has geomarketing become essential for organizations and how can they benefit from it? Here you have 7 reasons not to set it aside.
What is geomarketing?
Geomarketing is built on the application of different types of geolocalized data by enterprises for determining and optimizing their marketing strategies and actions. In this way, they recognize their targeted audience, background and connections between them, which lead to getting more and better customers.
The development of technologies and digital solutions operating with geospatial information, such as GIS (Geographical Information System), have increased the potential for companies to obtain and to profit from these tools. In fact, all types of companies have access to this asset, regardless of their size.
Indeed, to develop an effectiveness with geomarketing, the following data are frequently used:
- Location of establishments.
- Presence of competitors and others nearby.
- Pedestrian and road traffic surrounding.
- Existence of points of interest: work and leisure areas, public transport stops…
- Sociodemographic and environmental factors or the areas to survey: age, family type, average income, level of education.
- Buying habits: visit frequency, average time per purchase, most visited areas of the store, parking lot occupancy levels, average expenditure per purchase, etc.
Why use geomarketing in your business today?
Even though geomarketing has been an asset that, one way or another, has been used by companies for years, it was practically from the tech boom when it became as valuable as it is today. However, not only should we give credit to the digitalization for this role, but also and because of its influence, to the omnichannel existing in many sectors.
Currently, most enterprises combine on-site purchases with the online ones, which is a factor that causes two-ways influences on the sales results.
Nowadays, it is common for a person to discover a product in a physical retail store and end up buying it in e-commerce. On the other hand, it may happen that they discover and fall in love with the product on the website, but buy it in the store.
So, a fall in on-site purchases does not mean getting negative results if it can influence the growth of online purchases. In fact, according to McKinsey, the positive “halo” of a store regarding its e-commerce can represent between 20% and 40% of its total value.
To learn more about the effectiveness of the omnichannel and its significance, accurate and up-to-date geographical information would be required and once we have this insight, it will be time to start shaping the right marketing strategies.
7 practices of geomarketing that will drive your business
1. Site selection of physical establishments
With geomarketing, the enterprises have a unique opportunity of investing more wisely in their physical stores. Actually, the meaning of this is that they will identify locations that ensure better outcomes and those not worthy.
Besides, it is a useful tool to decide which establishments need to shut down due to its low yields in every sales channel.
2. Customer segmentation
The geographical component is essential to determine both your current and potential audience profile: where they live and work, how they move, their most visited places, favorite establishments… All these variable factors include geospatial data.
These data, in large quantities and thanks to Big Data, allow us to set the perfect marketing messages and operations for each type of these perfect buyers.
3. Monitoring your competitors and winning clients from them
Geomarketing is not only used to assess your brand’s performance and its actions, but also to enable a more detailed vision of your competitor’s and their audience results.
For example, their level of satisfaction in a particular market with products and services of competitors can be analyzed, labeling them so either as possible valuable leads for us or as total rejects.
4. Measuring the results of your campaigns in detail
Geographical data are included as an essential part of reports collecting data of all the carried-out marketing campaigns and actions. Therefore, such interesting figures as the conversion rates per invested area, can be found.
Also, we do not need to wait too long to learn this information, so we will be able to respond promptly if we notice that the expected benefits are not being achieved or if any unforeseen contingency comes up.
5. Improving business logistics
Geomarketing’s own spatial data analytics are influential in shaping a refined supply chain.
This way, the product catalog of each store will be aligned with the demand of the audience nearby, as well as last-mile delivery services in high-demand areas will be optimized.
6. OOH Marketing
Seeing a map is having in front of our eyes a wide range of options to transmit our marketing message. Where to do it then? To make this decision, we can resort to geo data.
We count on the amount of people or vehicles driving by a billboard, a bus stop or a subway station; the number of passengers on a certain line and the income levels of a neighborhood or its average age, among many other things.
7. Customer proximity notifications
It is becoming more and more frequent that, having the proper App set up and having the appropriate permissions granted, we receive messages on our smartphone with personalized offers and other promotions when visiting an establishment or a specific area of it. These messages are triggered based on both our location and our preferences.
So, as you can see, geomarketing has an impact on many aspects that will eventually affect business results. To ensure these are the most positive possible, Locatium offers you a customized Location Intelligence platform.
With our solutions, you will be able to visualize all the factors in maps with their corresponding layers and graphs that will allow you to take the best marketing decisions for the particularities of your project; and all this, as a result of capturing and analyzing geospatial data in advanced through Big Data or AI-powered technologies, among others.
Would you like to learn more about it and how it can be applied to your business world? Please, feel free to contact our team all the times you need. We are waiting for you!