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Geographica:Make data count.

Geomarketing in retail: how to get more out of the data

by Azahara 28/Mar/2019

Extracting all the juice to the widest range of data that we have today makes companies in the retail sector go further in their marketing strategies. The geographical factor seems to be transcendental for this purpose, geomarketing coming into play here.

We can define geomarketing as the set of tools that geolocation applies to marketing processes. If we think about it carefully, it is a discipline that has been applied for years. In fact, traditionally stores have adapted their offer to the characteristics of the neighborhood in which they were located.

Indisputably, in recent times geomarketing has acquired great relevance as a result of the rise of Location Intelligence, managing to expand its functionalities at the hand of technological development.


The implementation of a geomarketing system requires the use of information sources of diverse origin, both internal and external to the company.

The internal data are those related to sales, customers, employees, billing, etc. While the external ones can be of the most varied, demographic type, prices of rents, data of the competition and many others.

Together with the data collection, it is necessary to develop the graphic representation of everything we want to monitor, so that its visualization is as simple as possible, as complete as possible.

The visualization of data is crucial when it comes to having an adequate perception of reality. It is much more complex to put a figure on any map or chart without criteria chosen.

For this reason, it is necessary to design dashboards with which the most relevant information can be contemplated at a glance to be able to go to make solid decisions based on reliable data in real time.

The next step would be the integration of all the data we have available. These must be codified, grouped, filtered by relevance, define and estimate the indicators that we consider of interest.

Finally, we must perform a statistical analysis of all the information we have discussed, so that we can extract from it all the value it contains. For this we have techniques such as data mining, correlation analysis, flows, etc.


Thanks to the geomarketing systems we can have a deeper knowledge of, among others, our clients, target audience and competitors based on location data. This can be applied to a wide range of business decisions.

Stores and localized areas

Geomarketing is applicable to large areas of land as well as to more localized locations, such as a store or store of any kind. In recent years, this facet has been enhanced with the implementation of technologies based on beacons and geofencing.

Both techniques detect the presence of a user in a certain area through their mobile device, thus being able to send information of potential interest or collect data that may be of great value for the management of the business.

The beacons works with Bluetooth low energy technology and that are placed in different points of the store. Its radius of action is relatively short, about 50 meters at most, but they determine the location more accurately over short distances.

geomarketing retail

For its part, the Geofencing works thanks to GPS technology, defining large parcels of land, since its range of action is wider; this makes it very practical for outdoors. In addition, Geofencing does not need specific hardware to function, which beacons do.

Identification of public segments of interest

The crossing of data from traditional sources, such as those extracted from the census, with information gathered by geomarketing systems, allows us to obtain conclusions of great interest for the definition and study of KPIs that allow us to make more accurate profiles of our potential clients.

Thanks to this we can take into account situations not contemplated until now. For example, it is the case that the younger generations may not consume as much, but they are more active in social networks, being able to generate currents of opinion around a product or brand, a trend that we could not monitor with information from classical sources.

Location of establishments

The study of traditional demographic data, such as rental prices for a certain neighborhood or level of income, has always been taken into account when deciding the location of a business.

Making a decision based on this type of information entails a certain margin of error, since there is a risk that it is not properly updated. This uncertainty associated with the obsolescence of the data can be corrected thanks to applications that allow for the direct monitoring of figures such as, for example, the charges of credit cards in the different establishments in the area.

For this purpose, the so-called Competitive Interaction Multiplier Model (CIM) of location theory is often used. It aims to study consumer behavior in a geographical area.

With the CIM model, we can calculate the probability that a consumer chooses a certain establishment based on variables, both objective and subjective. Among these we can highlight some as the number of competitors, the level of attraction of the company, the distance between customers and establishment and the sensitivity of customers with respect to it.

Billboards and their influence on online advertising

Although the trend of shopping and advertising points to the online world, we should not forget the importance that physical stores and traditional advertising techniques still have.

Both aspects are by no means incompatible. Moreover, they can benefit each other. Proof of this symbiosis is that advertising on supports such as billboards increases consumer confidence in the brand and, in turn, this generated trust acts as an impulse for the effectiveness of online or social media advertising campaigns.

We can use geolocation systems to monitor the available billboards based on factors such as their distance to different types of businesses or data related to pedestrian and traffic flows.

Customer dynamics

The option of shopping at a shopping center enjoys great acceptance by a large part of the population. This is due to advantages such as the convenience of being able to find different establishments in a single space and the availability of parking spaces.

These large shopping centers are usually located in peripheral areas of urban centers, so it is usually necessary to travel a certain distance to visit them.

The investigation of clients’ transportation routes lets us know where they come from and apply marketing strategies in those particular neighborhoods.

Study of competitors

Knowing the areas of influence of the different competitors serves to define business expansion strategies.

Thanks to this we can avoid these regions, decide a direct confrontation with them, trying to take away a portion of their business, or identify opportunities for synergies with the competition, so that both benefit from this interaction.

Price strategy design

Establishing the price of a product or service is a more complex process than it may appear.

To carry it out, various methodologies can be followed. One of them, the one most related to geomarketing, is based on the study of the economic potential of geographical sections of different sizes, such as neighborhoods, cities or even countries.

This potential can be measured by variables such as wages, real estate value, consumption, new vehicle registrations, etc.

As we have seen, the geographical factor has been placed in a privileged position in the taking of business decisions. Nowadays we have opportunities never seen before to define strategies based on geomarketing, optimizing to a large extent the resources available to businesses.

The benefits are such that, the implementation of a geomarketing system supposes the acquisition of a competitive advantage without which we would be far behind our most direct competitors.

TAGSGISLocation Intelligenceretail

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