All companies work with data that have spatial application. For example, spatial concentrations of target groups define sales. All customers have 3+ addresses (living, work, education, food, relatives, etc.) and migrate very naturally within the major spots. The regularities and algorithms that are described analytically allow to teach a predictive model and roll out the prediction over a targeted territory and business. Geo-data and spatial analysis provide effective tools to improve the quality of decisions and activities that are applicable to current and potential markets, customer acquisition and management, media-planning, sales growth, locations assessments.
B2C business is tightly connected to geography. When there are no sales outlets and 90% customers are attracted through Internet, individuals live, work, move and make decisions in a very material world. Many companies are starting their geomarketing path while few leaders steadily increase the budget by 10 times yearly. Geo-data and results of spatial analysis become highly applicable once they are visualized to be seen and touched. We have developed cloud solution for geo-data visualization – Atlas for fast and easy performance of the following tasks:
Geo-coding of data (converting addresses into spatial coordinates)
Zooming from country \ region \ city level to 100 meter squares and spots
Application of data layers to your market with high level of detail
Development and visualization of analytical layers to solve various business task and to optimize business indicators
8 out of 10 locations are successful when using geo-data, and 4-5 out of 10 if geo-data was not used. An objective assessment of the environment is the foundation for successful solutions for point optimization. Each point is estimated by the influencing parameters from 2 main categories: the density of the environment and traffic. In each category, the predictors are chosen from the long-list to solve a specific task, the degree of influence is evaluated, and the weight of the value of each indicator is calculated. The choice is determined by the scope and type of business and the description of the target audience. In the future, all information and conclusions are used repeatedly at all stages of the life of the point of sale.
A full analysis of the geo-location potential is possible only using geo-data and should provide the following information:
Locate location: find the best place to open a point
Location estimation: determination of the potential of an existing point
Determining the Point Format: Calculating Optimal Values
Changes and improvements in the point: cost-benefit analysis based on geo-data and internal information about the point and customers
Closing and moving the point: making a decision based on objective data on the potential and current indicators
Optimization and cannibalization of the network: the solution of complex tasks for moving, closing, changing network points
To solve geo-location potential problems, we use various methods, including coverage area analysis, distance matrix, availability analysis, points of attraction, distributed location method, scoring, correlation and regression analysis.
Transformation of addresses into geographical coordinates – the first necessary step of any geo-analysis. As a result of geo-coding, your internal data (sales outlets, clients, competitors) will appear as map points. Simple modelling of internal and external geo-data allows to understand geographical distribution of the current and potential clients, to estimate the capacity of the market and assess locations. We process bunches of bad and unstructured addresses quickly with maximum quality level.
Ideal planning correctly accounts all influencing internal and external factors. All external factors are raw or processed geo-data or are geographical coordinates. Our model is convenient for planning, challenger testing, and network restructuring. Spatial analysis allocate sales, SKUs, customers, competitors, P&L over each house and each map dot. The sales structure and network constantly change to capture and hold the market on local levels (representatives, partners, employees, advertising) for the maximum use of potential and business growth.
Internal planning seems simple. Actually, it is complex modeling of sets of data layers: competitors, products, personnel, density and welfare of population, type and quality of traffic, advertising, brand power.
The results of good effort are:
Assessment of influence of each factor of model on target variable
The realistic and reasonable targets for each point, and transparent model for the employees
Clever costs cut and accurate work with each growth point
Geomarketing allows you to discover the patterns and scale the success of individual elements to the level of the entire network. We can find the maximum concentration of your target customers.
Within the framework of the analysis of target groups, two approaches are possible:
The description of the target group is known and can be easily identified on the basis of social characteristics. Geographical analysis will show the distribution (where they live) and the movements (where and when they move) of the target group for any region. It is possible to mix several layers and search for similar characteristics.
The description of the target group is unclear and unstable. In this case, geomarketing will analyze the patterns and test the algorithms that solve the business problem, first of all, on historically accumulated your internal data. The findings for later use will be tested on historical data or a separate test sample.
If a B2C business is not using geo-data and spatial analysis, it means that no less than 30-40% of the marketing budget is useless spend, and can be saved without notable loss for sales or brand goodwill. Increase of efficiency happens once internal and external data are matched and modelled. The following ways of spatial analysis can be used to quickly increase efficiency:
Penetration into environment (population and traffic)
Concentration of target groups
Influence of competitors
Segmentation of customers on the basis of geo-data
The number of competitors in the potential market affects the volume and value of sales.
As part of the analysis of competitors, we offer:
Analysis of the locations of competitors' points of sale and the degree of their influence on the client's business
Comparison and evaluation of product competitiveness and recommendations for product changes for the purpose of increasing sales, development or retention of customers
The analysis of penetration of competitors into the target segment of the client
"Luring" customers from competitors
The capture of the market - the management of its market share Search and analysis of ways to capture the market occurs by combining the accumulated internal data of the location data, and macroeconomic geo-data. All SWOT scores of the company are digitized to maximize scaling of conclusions and for detailing in concrete actions and applications \"on the ground.\"
As a result, companies receive the answers:
Where are my clients located?
Where do I get clients from and what is their geographical distribution?
Where is the concentration of my sales and what areas do I know nothing about?
What are similar areas of high sales?
How much do my sales utilize the location potential?
How to make my ad more targeted?
What was the most effective marketing activity?
How do I choose the right place for advertising?
How many clients did not reach my target audience in the latest advertising activities?
How to assess the welfare of my target audience?
Where is the population concentrated with the maximum purchasing power?
How is the decline in sales related to the actions of competitors?
How to entice customers from a competitor?
How to penetrate and quickly increase my share in a particular house, quarter, district, city?