Thanks to the application of GIS and Location Intelligence solutions, it is now much easier to perform marketing and commercial actions that provide a good return on investment. This technological contribution has shaped the concept of geomarketing. Do you know what it’s based on, what it has to offer and in what situations you can apply it? It is time to get the best out of it.
What is Geomarketing?
Geomarketing is, basically, including the geographic component in marketing actions. Through it, companies obtain high-value information when it comes to improving their sales figures. Later on, we will specify this data. It will help you understand the importance of actions based on Location Intelligence for business success.
Why apply geomarketing in business management?
If you are hesitating to undertake geomarketing actions, it will be helpful for you to know all the benefits your company will acquire. These are the most outstanding ones:
- Define business operations more accurately.
- You will get to know your potential clients. This includes demographic information (age, income level, type of family …), and their behaviour.
- Detect new market trends and even anticipate them.
- Identify those areas with greater sales potential.
- Customize your marketing actions based on each areas’ characteristics.
- Your message will reach those who have a real interest in your product or service.
- Make better decisions related to growth and expansion.
- Notice an increase in profits and a saving of expenses in bad investments.
How does geolocation influence marketing actions?
There are many ways in which your company can benefit from geomarketing. Besides, it can be used in both outdoor and indoor environments thanks to technologies such as Indoor Mapping and Indoor Positioning.
We’ll start by talking about one of the most common applications of geomarketing: segmentation of the target audience. Is your product designed for people in a certain age range or with a certain purchasing power? Thanks to geomarketing techniques, you will be able to know where the biggest proportion of your target audience is located.
But it is not only where your audience lives you should be concerned, but also about their behavioural habits. Where do they work? Where do they spend their free time? Which stores do they visit? These are some of the questions that geomarketing helps to answer.
This can go further. For example, you will know your customer movements. This is possible by analyzing the urban traffic data. Today, thanks to GIS solutions, urban mobility models can be created using origin-destination matrices. It makes it possible to know which streets and roads are the busiest and you will be able to divide this information by hours or by direction of traffic.
This can help you know the best place to locate a billboard, where to open a new establishment or calculate the losses of closing a store.
Geolocation also has functions inside the establishments. Thanks to interior positioning technologies, managers collect data on which areas of the store are the busiest, peak hours, low influx hours, etc.
Last mile delivery is also greatly benefited by GIS solutions, which create the best delivery routes based on variables such as the location of the customers, traffic or the location of warehouses and sales points.
At this point, are you more aware of everything that geomarketing offers for your business? If you want to take advantage of it, from Geograma we can help you with our GIS solutions.
Proof of this is the TomTom Traffic Density product, used to measure traffic flows and densities. Or our postal address master, very useful when it comes to locating clients.
Do you want to know more about our products or about what we can do to make your marketing plans effective for the growth of your company? Contact us and we will study your case.