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 (MAID) 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 consumer privacy measures to ensure data is pseudonymous. Location intelligence can help businesses uncover new insights on their consumers, their competitors’ consumers, and potential new audiences. They can then use that information to provide a better experience, including new products and personalized 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. In 2020, it’s become apparent that old marketing strategies simply won’t work anymore because old datasets have become unreliable with the shifting economic state of the world.
Below are four ways businesses are using location intelligence in 2020 to generate results.
1. AD TARGETING
Ad targeting is one of the most common and easily implemented uses for location data. Companies can purchase what are known as ‘advertising audiences’ that have specific characteristics. These advertising audiences are built on insights from location intelligence.
For example, a health food brand could purchase an advertising audience of people who have visited health food stores in the past six months, and send highly-relevant advertisements to consumers interested in healthy food.
That same health food brand could also use an advertising audience of people who visited gyms, since the chain used location analytics 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 both customers and prospects alike.
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 using location intelligence to reach relevant audiences and provide more personalized offers.
3. OMNICHANNEL ATTRIBUTION
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 places of interest. 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 against their competition. 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 their 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. In today’s digital world, consumers are demanding more relevant, personalized experiences. But while location intelligence can be used in nearly every industry, there are a few sectors that could greatly benefit in 2020.
COVID-19 impacted many industries during lockdowns and the reopening process, and because of this, there’s no denying that buying behaviors have changed. Because there are no sureties in 2020, especially when past year’s data is no longer reliable, retailers can use location intelligence to reach new audiences, improve consumer insights, and scope out the competition. Moreover, retailers can use location intelligence to predict what to keep in stock, and how many people should be on staff on any given day. With location intelligence, retailers can rely on foot traffic data to help them make the best business decisions possible in this new economy.
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. What does this look like in 2020? 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 in the past. Some auto companies also use location intelligence to enhance the car buying experience.
For restaurants, location intelligence can be used to improve their understanding of customer interests and activities in 2020, as well as dining habits at their own and competitor establishments. Using a location intelligence solution, they can reach customers that are the most likely to convert and also identify co-marketing and sponsorship activities to expand their reach, improve brand awareness, and increase customer engagement by interacting with them in new ways that fit the times we are in.
Use Location Intelligence to Improve the Customer Experience
In 2020, this can be challenging for marketers because consumer habits are changing along with their expectations. Competition in all industries is rife, and as stores reopen and improvise how they interact with consumers, having a superhero solution like location intelligence can help take the guesswork out of what customers want from your brand.
Location intelligence generates tangible business results that will improve 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 without wasting already constrained budgets on messaging that doesn’t convert.
Increase conversion rates, improve customer experience, and get more people in the door with location intelligence.