Location intelligence is a relatively new term in marketing, but one that is gaining popularity as consumers demand more relevant content and offers. Broadly defined, location intelligence is a type of business intelligence based on the physical locations consumers visit. To get this information, a location intelligence company can gather data from consumers’ mobile devices with their permission. That data, known as location data, can include:
- A mobile advertising ID number that identifies the mobile device without collecting or sharing personally identifiable data
- Recently visited commercial locations such as stores, restaurants, or entertainment venues
- Timestamps and device information
Location data is only gathered from mobile devices that have consented to sharing information. That information is passed along to location intelligence companies, such as Gravy Analytics, that follow the highest privacy measures to ensure anonymity. Businesses can use location data to get valuable insights on consumer interests and preferences. For example, consumers who regularly work out at gyms may also visit health food stores, indicating that they’re interested in a healthy diet. That’s a simple example, but location intelligence can help businesses uncover unexpected information on their consumers, their competitors’ consumers, and potential new audiences. They can then use that information to provide a better experience, including advertisements and offers, to their customers – something customers themselves have come to expect.
Location data is only gathered from mobile devices that have consented to sharing information. That information is passed along to location intelligence companies, such as Gravy Analytics, that follow the highest privacy measures to ensure anonymity.
Businesses can use location data to get valuable insights on consumer interests and preferences. For example, consumers who regularly work out at gyms may also visit health food stores, indicating that they’re interested in a healthy diet.
That’s a simple example, but location intelligence can help businesses uncover unexpected information on their consumers, their competitors’ consumers, and potential new audiences. They can then use that information to provide a better experience, including advertisements and offers, to their customers – something customers themselves have come to expect.
Business Advantages of Location Intelligence
Large enterprises have been using location information to make business decisions and improve their ROI for years. The most successful organizations have also used the insights they gained to improve the customer experience and win over new audiences.
Below are four ways businesses are using location intelligence to generate results.
1. AUDIENCE TARGETING FOR ADVERTISING
Targeting is one of the most common and easily implemented uses for location data. With location data, companies can purchase what are known as ‘advertising audiences’ that have specific characteristics. For example, a health food store could purchase an audience of people who have visited health food stores in the past six months, and send highly-relevant advertisements to a group of people they know are interested in healthy food.
That same health food store could also use an advertising audience of people who visited gyms, since we’ve used location intelligence to learn that people who visit gyms are also often interested in a healthy diet. By using an audience with complementary interests, the health food store could target a new audience and acquire new customers.
2. HIGHER CLICK-THROUGH-RATE (CTR) AND ROI
Using location intelligence, companies can learn more about customer interests, activities, and habits, which can then help create detailed personas for sales, marketing, and customer service. When used with a customer relationship management (CRM) system, those personas help each team provide highly relevant communications to customers and prospects.
Using accurate personas to improve communications throughout the customer lifecycle creates a better customer experience and can greatly improve your business results. Advertisements and offers that are highly relevant gain better results, improving the CTR and the ROI of campaigns. We’ve seen companies achieve a 250% increase in CTR for marketing campaigns just by leveraging location intelligence to target relevant audiences and provide more personalized offers.
Because location intelligence is based on real-world actions, it can help businesses connect online activities to offline behaviors. That means companies can use location intelligence to connect mobile advertisements to offline foot traffic in stores, restaurants, and other commercial venues.
By connecting changes in your foot traffic data to mobile advertising campaigns, you can understand which advertisements work and which ones don’t, giving you the insight to make better decisions and increase your ROI in the future.
4. COMPETITIVE ANALYTICS
Instead of focusing solely on their own customers, many companies use location intelligence to learn about their competitors. By tracking visits to competitor locations, companies can compare their store visits with competitors. They can also see where their competitors’ customers go before and after visiting the store. With this information, companies can launch conquesting campaigns to win over competitor’s customers.
For example, your company could use location analytics to learn that over half your competitors’ customers regularly visit their store late in the evening. By optimizing your ads to show in late evening, you can better reach those consumers when they’re ready to make a purchase or visit a store.
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What Types of Businesses Are Using Location Intelligence?
The benefits of location intelligence are becoming more widely known as companies see results and consumers demand more relevant, personalized experiences. But while location intelligence can be used in nearly every industry, there are a few sectors that are ahead of the curve.
Retailers use location intelligence to support audience targeting, improve consumer insights, and scope out the competition for conquesting. Moreover, retailers can use location intelligence to help select the best store locations based on foot traffic as well as to engage in loyalty marketing – targeting existing customers to improve engagement and drive sales.
Related Read: The Future of Location in Retail: Beyond Ad Targeting
Companies in the automotive industry use location intelligence to reach audiences that have expressed interest in cars – either from a partner or from a competitor. This could include people that have identified as auto buyers, visited an automotive retail location, or who have shown interest in cars or motorcycles by attending an automotive event. Some auto companies also use location intelligence to determine the best event venues to sponsor to reach more of their high-value audiences.
Restaurants use location intelligence to improve their understanding of customer interests and activities, as well as dining habits at their own and competitor establishments. However, they can also use location intelligence to identify co-marketing and sponsorship activities to expand their reach, improve brand awareness, and increase customer engagement by interacting with them in new ways.
What Types of Businesses Are Using Location Intelligence?
While location intelligence is a recent addition to marketing analytics, it is an extremely valuable one. Online personalization has led consumers to expert hyper-relevant communication and advertisements, making it essential for businesses to use all available data to provide the experience consumers want.
Location data can help, generating tangible business results and improving the customer experience. It can be used in a variety of ways, in a number of industries, giving organizations a deeper understanding of their customers to help them grow, improve, and reach strategic objectives.