The traditional way of using maps when trying to help your business is by finding out where you will be selling a particular product. Descriptive analytics is knowing where you will be selling your product and whether there are customers available in the area interested in your product.
A much more elaborated question is why your product will likely have more customers at a particular location compared to another. This is what customer segmentation is about, and it allows you to sell more at a particular location.
Predictive Location Intelligence
Predictive location intelligence in the light of customer segmentation allows you to answer the “why” questions. Today, you live in an era where you can analyze data generated on virtual maps. You also have to go beyond visualizing data on maps and analyze data to make decisions. Predictive location intelligence gives you the power to understand the underlying structures of the data and go beyond simply visualizing.
Your Business is Location Dependant
Once you figure out the key role of location in a thriving business, you can utilize this information to make thoughtful decisions. Your customers, issues, and operation efficiency have a spatial relation, and you can use that to your advantage.
Just like how the spread of viruses is dependent on proximity within individuals at a particular location, customer behavior is also reliant on proximity between members. Buying behaviors are influenced by people living close to each other.
Predictive location intelligence analytics can be pivotal, as it can open up insights into the neighborhoods at a location. This demographic can solely determine whether your retail business will perform well. Many people within five kilometers will have a lot of impacts.
Customer Segmentation and Location intelligence
Customer segmentation allows businesses to gain insight into the market. It reveals customer traits that allow you to group them into segments. These segments can represent customers that have similar traits. Another name for this process is clustering, and the specific technique you use to cluster customers involves complex algorithms.
Location intelligence analytics is another way you can segment customers. Location intelligence analysis is a method that will allow you to deduce the income, age group, and other demographics of people geographically. Then, one can use clustering algorithms and apply them to the data collected by location mapping tools.
Each cluster or segment that a company creates will represent whether they are ideal customers for a particular business. These summarized characteristics of each segment are generated through location intelligent strategies and can allow businesses to make critical decisions regarding their return on investment. At PREDIK Data-Driven, we allow users to leverage geomarketing solutions that work on customer segmentation and location intelligence.