Location intelligence has clearly become a mainstream business practice—driving decisions across most every department. As we begin 2010, we wanted to provide you some insights into twelve of the latest trends and applications. Today we’ll look at how geo-spatial information supports customer-facing initiatives. Next week, we’ll examine the same trends in operations and the public sector.
Site Selection. Opening a new store or branch location can cost millions of dollars, with payback often calculated in years. Companies can now analyze market demographics, competition and consumer buying habits across alternative geographies in order to predict events well into the future. This is especially important in times of economic uncertainty, when many firms are deciding whether or not to close or relocate stores and branch locations.
Customer Segmentation. Marketers can go beyond simple postal codes to identify households at the neighborhood and street level who are most likely to become new customers or to purchase additional products and services. Color-coded maps overlay multiple levels of data, including revenue, Census information, proximity and customer penetration—making it easy to visualize how market demographics correspond to sales potential.
e-Tailing. The exponential growth of online shopping adds another dimension to marketing decisions. While consumers may transact in a “virtual world” they still access the Web from specific locations. Understanding the relationship between where online customers live and work vis-à-vis the location of retail locations and competitive outlets makes it easier to develop strategies that best leverage both on- and off-line efforts.
Customer onboarding. The opening of a new account can be one of the most critical times in the relationship between a customer and a company. Geocoding applications help validate the exact location of new accounts so correspondence and shipments reach customers in a timely fashion. Increasingly, organizations are also using location-based information to make real-time decisions on which products or services to cross-sell in the first 90 days, when customers are most open to expanding their relationship.
Customer self-service. With an ability to integrate vast amounts of data, analytics and customer-friendly mapping applications, customers can now view the same information used by back-office personnel. In one instance, an insurance company shared details on a hurricane’s path online, discouraging individuals from submitting false claims.
Customer care. In many companies, telephone reps now navigate intuitive, user-friendly mapping applications to make on-the-spot decisions based on location. In most cases, these technologies are employed to identify cross-sell opportunities and provide accurate information to customers regarding network access.
While spatial analysis is just now hitting its stride in terms of business applications, it is likely that major breakthroughs are yet to come. New tools and solutions are making it even easier to locate new opportunities, connect with customers and communicate more efficiently. So tell us… what other ways are you tapping the “power of where” in your business?
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