Location Intelligence (LI) technology has transformed how businesses operate by providing accurate and reliable information. It offers a strategic solution to businesses in various sectors, including retail, real estate, finance, media, and entertainment.
As you may already know, Location intelligence is the process of collecting, analysing, and visualising geographic data to gain insights that help businesses make data-driven decisions and gain a competitive advantage.
Grand View Research stated that the global location intelligence market size is anticipated to reach USD 51.25 billion by 2030, registering a CAGR of 15.6% from 2023 to 2030.
Yet thousands of brands and businesses across the globe still ignore or underestimate the competitive advantage they can gain by using this technology.
Investments and commercial decisions were once driven by intuition, previous experience and competitor analysis. Today, location intelligence offers new insights with accurate and reliable information, to aid businesses in making the most strategic decisions.
Six common ways to transform location intelligence into your competitive advantage
- Identify the most suitable areas for investment or redevelopment, based on customer satisfaction and perception, lease and purchase costs, the presence of competitors and growth trends of new properties across a variety of sectors
McDonald’s and Starbucks are well renowned brands that use location intelligence to identify the most profitable areas to establish new franchises, based on demographics and consumer behaviour.
- Pinpoint the most strategic areas to expand your e-commerce, delivery or in-store services. By analysing data on consumer behaviour and location, businesses can identify areas with the highest demand for their services. For instance, Amazon has leveraged LI to identify the most strategic locations for its new distribution centres, based on proximity to customers and delivery routes.
- Identify which activities are the most profitable, trending and appreciated by customers according to the Sentiment data associated with every single POI. Analysing the online sentiment expressed by customers, a brand can easily detect trends and preferences: let’s take a food & beverage investor looking for opening new restaurants. With Location Intelligence she could find out that poke bars are the most frequented restaurants in town, yet they have a low sentiment score, meaning people often opts for a poke bowl for lunch but cannot find a high quality venue yet. This could suggest the possibility to invest in a poke bar offering a more tailored and high quality food. Businesses can use this information also to improve their offerings, tailor their marketing strategies and improve customer satisfaction. A great example of a brand that has leveraged LI to identify profitable activities is Nike. The brand uses LI to analyse customer behaviour and preferences to tailor its product offerings in store and marketing strategies.
- Expand the sales network by uncovering new opportunities, or on the contrary, resize points of sale based on customer satisfaction and contextual geographic data. Analysing the exact behaviour and opinions expressed by clients about every single point of sale or reseller, a brand can detect which ones are the most misaligned with the brand standards and even leverage fragments of reviews to analyse the reason why people are not satisfied. According to the analysis, the brand can find new valuable resellers to enrich its database and have all the contact at the sales’ fingertips to make the enrollment process more efficient.
- Quantifying and mitigating investment risk: LI can be used to quantify and mitigate the risk of new investments by deeply understanding the potential of specific locations and consumer preferences in the target destination and in relation to existing POIs. The real estate industry, for example, heavily relies on Location Intelligence to generate valuable insights about the location trends and demographics of the visitors and customers. Location intelligence reveals the opportunities that are critical to the long-term growth of businesses, from identifying ideal sites and obtaining the best value in property deals to maximizing the potential for growth and investment opportunities.
- Identify changing attitudes related to specific socio-economic situations and define new strategies or services. The pandemic crisis is a perfect example of how such an impactful event can produce long-run changes and preferences in the society and the economic scenario. These changes can be mirrored by territorial trends detectable through Location Intelligence, that a company can leverage to adapt to the new situation.
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