When we think of location, we think of geography, but it is much more useful to business analytics than we give it credit for.
Location-based tracking can change the customer experience in amazing ways.
Girls may run the world according to Beyonce, but today, in technology, data not only runs, it controls the world. Without it, we don’t know how many people have downloaded a whitepaper or how many leads could turn into potential clients within a month. With major advancements in technology, analytics forms a very important part in the setup and expansion of a business. One such form of analysis is Location Analytics.
Location analytics is a method of interpreting and analyzing information being portrayed by data when used in conjunction with a geographical information system or geographical positioning system (GPS).
Techopedia.com defines Location Analytics as: “the process or the ability to gain insight from the location or geographic component of business data. Data, especially transactional data generated by businesses, often contains a geographical component that, when laid out in a geographical information system, allows for new dimensions of analysis and insights, in this case through a more visual approach.”
Location analytics can be handled from the perspective of both real-time geographical data and historical geographical data. Many businesses can benefit from location analytics. Whether it is a retail store or setup of a kiosk in a mall, location analytics can help to ensure a better customer experience.
Different aspects of business creation can benefit from location analytics. Application of location analytics and the insights derived can be put to good use in various industries including:
- Design and merchandising: Upon analyzing how people move in retail stores, merchandisers and interior designers can place different outlets and kiosks at positions in which people will see them and pay attention to them.
- Marketing for events and outlets: It becomes increasingly important to understand whether marketing efforts have any impact at all in this arena. For example, if a restaurant chain wanted to understand whether to sponsor a local music festival, it can do so by capturing data on 15,000 visitors passing through the festival entrances and comparing it to customers who visited their restaurants two months prior to the festival and two weeks after. If they do that, the company may conclude that the festival resulted in 1,300 new customer visits.
- Operations: Placement of machinery and equipment to minimize waste of motion and avoid motion fatigue can be significant for manufacturing companies in particular.
- Strategy: Strategizing takes up a reasonable amount of data n and of itself. Strategies are often developed around data extracted during executive meetings and talks with clients. Strategizing using insights from the data collected, and therefore can result in a boost in sales and turnover.
Location intelligence is all set to be the future of business analytics and here are a few ways it will change the way businesses operate:
- Location intelligence companies will consolidate and “location analyst” might even become a job title: Just like business analysis, location analysis will become a field of importance. There will invariably be consolidation and no industry or sector would be able to stay aloof. There could also be location-based marketing companies that will take up marketing efforts for different companies.
- Advertisers will rely on real-time location analytics to prove their value in international markets: Analytics for digital ad measurements primarily focused on digital results for a long time. With location analytics, these advertisements will be far more effectively placed to better maximize ROI.
- Location will become much more than a check-the-box strategy: Only the smartest of brand marketers will be able to turn good quality data into smart, actionable consumer insights and business strategies. Using location insights, marketers can steer business to new heights.
- Businesses will shift toward mobile: Location is mobile. Seeing that an increasing number of people are shifting to mobile phones and going online, marketers need to optimize around that to increase sales in a competitive landscape. Using location analytics can help marketers reach their target audience better.