A large retailer with a global presence is experiencing a downward spiral in sales. They decide to cut costs by closing several loss-making outlets. Then, mapping their location-based data through a GIS application, the retailer gets a spatial representation of the best and the worst performing stores in each region, helping them to swiftly shut down several loss-making units.
Location intelligence is defined as the capacity to organize and understand complex data through the use of geographic relationships. In fact, a research report suggests that 80% of all data maintained by organizations around the world has this component. Using the power of maps and demographic data, this intelligence organizes business and geographically referenced data to reveal the relationship of location to people, events, transactions, facilities, and assets.
This form of intelligence offers value to an organization by enabling executives and enterprise-level users to make critical business decisions and facilitate informed decision-making. It provides very specific benefits across the spectrum, which translates to increased revenues, reduced costs, and improved efficiency for any organization.
For retailers, location intelligence would determine the best locations for new stores, branch offices, service sites or trade areas. Additionally, in retail operations, this capability would allow companies to engage with their consumers in new and innovative ways. For instance, retailers would already be privy on the purchasing histories of each of their customers through their CRM and sales database. By combining this data with location intelligence, retailers can use GPS coordinates from customers’ smartphones to offer them personalized coupons or vouchers whenever they are within the vicinity of a store.
In the insurance sector, underwriters can use digital maps and GIS information to ascertain the risk of a potential area by assessing its vulnerability to floods, earthquakes, and other disasters. In other cases, motor insurance companies can also pull customer coordinates during a claims process to make the process more efficient.
Location intelligence can also improve decision-making and service delivery across a range of public, private, and community sector activities. It helps government in planning and determining the housing, education, health, and transport and other infrastructure requirements for an expanding city. Additionally, it also helps in formulating effective emergency response strategies to save lives and minimize economic damage due to natural and man-made disasters.
Location-based data is a basic tenet for any business, be it manufacturing, banking, retail, insurance, utility, or real estate. While this technology is still underutilized, location intelligence provides organizations with the potential to uncover new business opportunities, discover new customers, and make business outcomes more understandable and predictable.
How else can location intelligence and technologies centering on it improve decision-making and business efficiency? Please leave your comments in the section below.