The question “where” arises in an innumerable number of situations in everyday life. The scope of business does not remain on the sidelines, acquiring a great importance to know aspects such as which is the best location to offer a product or service, among many others.
Currently, we are offered some new and powerful geographic data analysis tools that allow us to answer this question. All of them can be included in what is known as Location Analytics, which has been a sensitive impulse to Business Intelligence.
According to data from 2017, the market value of Location Analytics was estimated at around 8.35 billion dollars. Location Analytics solutions and their applications are gaining ground among companies due to the development of the Internet of Things (IoT) and the proliferation of a large amount of data through devices connected to the network.
Importance and advantages of employing Location Analytics
As we have said, the geolocalized information analysis has been a starting point for a new Business Intelligence paradigm. Thanks to the many conclusions that can be drawn from the data based on the location, companies achieve a series of benefits unthinkable until now. Then we will describe the most relevant.
The combination of Location Analytics with other data, such as customer profiles and online browsing habits, can reveal trends of interest to the business. For example, you can know how many people come to a store after visiting their website or if the weather conditions influence the transport habits of the population.
Of course, the client must be the main beneficiary of the advantages that localization intelligence brings us. Thanks to the compilation and treatment of data, we can better know who they are, where they are, what their consumption habits are or at what point of the buyer journey they are. With this, we can better meet your needs, providing customized solutions.
The study of location-based data can also translate into an improvement in business performance. Relate data such as sales figures or customer opinions with geographic information can accurately see where you would get greater economic benefits, improving the ROI. Through techniques such as heat mapping, companies can identify the investment hotspots at a glance, thus saving hours of work.
Another advantage provided by the use of Location Analytics from an economic perspective is that it helps reduce costs. It is possible to identify areas of low performance and geographic patterns that imply additional costs. In addition, this is of great help when it comes to mitigating expenses in the supply chain, touching on aspects such as the location of warehouses, inventory management or transport routes.
The expansion of the use of location data has also had its influence on those known as retargeting techniques, through which it is intended to convey a message to those consumers who have previously interacted with the brand. It is mainly important in purchases of a certain cost in which it takes time to assess the different options. It is possible to “tag” a client that visits us to be able to track their actions.
The emergence and development of Location Analytics has also had its repercussions in the field of public management. For example, it is now much easier to obtain and consult urban information such as data on properties and plots of land; it has also allowed a better administration of public transport, being able to know in real time information regarding vehicle traffic and the influx of travelers according to variables such as time or weather.
The future of Location Analytics in business
Evidently, geolocated data is here to stay. They are such advantages that contribute and apply to practically all business sectors that their growth is irremediable.
The Location Analytics market is expected to have a valuation of 16.34 billion dollars in 2021, with a compound annual growth rate of 17.6%. The demand for location-based reports and analysis is increasing among companies due to the growing need to improve decision-making, optimize internal processes and obtain competitive advantages.
If we observe this growth by geographic zones, it is expected that North America have the highest market share due to its large investments, the early adoption of these technologies and the large number of companies that use it. In second place is the Asia-Pacific region, which, although still in the initial phases, has the highest growth rate.
The location has long had a key role in Business Intelligence. Previously it was based on data collection such as customer postal codes, more recently it was passed to the IP address register. Now, Location Intelligence has taken over.
With the use of smartphones and other mobile devices you can obtain location data in real time that allow us to know information related to the movements and actions of your users (what places you visit, for how long and how often, etc.).
This information is invaluable for companies, since they can significantly improve both their products and their internal processes, all having an effect on improving the customer experience. That is why the market related to Location Analytics is developing at a speed that is all indicative that we are facing a revolution in Business Intelligence.