In the past, planning a business strategy was extremely difficult and expensive: weeks of study have taken a lot of time in search of information, reports, and forecasts were like the toss of a coin. But, modern technology can easily display data on a Map, generate reports and predict reliable future scenarios.
It is crucial that recurrent customer purchasing behavior trends are identified in a complex system, such as the modern economy, to estimate future expenditure patterns. The concept of geomarketing is becoming increasingly important in the business environment. It is nothing new, but a revolutionary tool in strategic decision-making because of the advances in GIS technology and a large amount of data, such as Big Data or Data Science.
What is Geomarketing?
Geomarketing consists of geographical information and business information being studied and carried out to develop efficient marketing plans and strategies. In determining and analyzing the behavior of customers the geomarketing study focuses on different geographical conditions and aspects. Therefore, marketing planners rely on this geographic analysis to develop marketing strategies which are effective in attracting target customers.
Why do we need Geomarketing?
In today’s environment, not only the target public but more precise segmentation of their exact physical location is the defining factors for the development of a marketing campaign. This is vital if a successful campaign is to be carried out. This segmentation can be optimized with the help of geomarketing. Geomarketing enables those customers who have a need that is not being met or poorly addressed, or customers who are interested in a service like that offered by a company, to be located on the map.
For large enterprises as well as small and medium-sized enterprises, geomarketing provides exponential results. In all industries and places, the geolocalized definition of the target population offers businesses benefits. The results are short-term however the benefits are for the long run. Geomarketing allows access to a large volume of very relevant and easily extracted information. It enables companies to undertake market research on, inter alia, fewer resources so that they can analyze competition indirectly and comfortably from the Internet.
How can Geomarketing enhance the capabilities of a business?
- Increase sales with the information obtained
Geomarketing offers a wide range of customer information, information on the competition and new business opportunities. The management of the company is responsible for assessing, processing and increasing sales. Information is power, as can be said, and geomarketing is information.
- Know your customers in-depth
Knowing who your customers are in a business is essential, as this will influence your sales, placement or communication with the products you sell. With geomarketing, you can create very complete client profiles: who they are, where they live, how they travel to your business to buy habits. Companies can also discover patterns of behavior based on certain criteria, which help them to offer exactly what is needed.
- Optimization of the commercial network
If several establishments are opened in different geographical areas, geomarketing provides a series of information and data about their economic performance and market share. It is important to evaluate which actions are needed to be taken. For example, whether there is a need to close a shop or modify a marketing strategy in order to make the potential customers turn into real customers.
Geomarketing through various technologies:
Companies can connect to their customers' smartphones using portals. Although the technology calls for specific mobile applications and user consent, it is an impressive way of bringing content to customers without an Internet connection.
- Global Positioning System
GPS or Global Positioning Systems is a satellite-based satellite network navigation system. Despite being a highly efficient mode technology for geomarketing, GPS signals can be partially blocked by things such as high buildings in urban areas, changes in the atmosphere, and electronic interference due to their reliance on satellites. This delays and can interrupt a marketer’s experience with its clients.
It is also possible to use Wi-Fi access points as transmitters. If the user enters the Wi-Fi area of a mobile app or leaves it, location actions can also be activated. In addition, locating data is critical to boosting the efforts put in by hotels and resorts. Companies can use location information to identify similar profiles and detect guests who are on a business trip, recreation or local trips to provide them with enhanced services and personalized experiences during their stay.
Today geomarketing market is the most powerful method of marketing to promote or sell a product or service. Companies bring their visitors closer to becoming the leader, customer or user of customer services by using words, images or any other geo-based content. A plethora of GIS analysis reveals hidden insights into the data once customers are placed on a map to give a comprehensive picture of the market.
Companies can basically geolocate customer behavior and analyze it. Understanding an area’s potential brings them a step further in developing faster and better, seamless plans to transform the business model into multi-channel marketing. The global Geomarketing Market is estimated to emerge at a CAGR of 28.4% in the near future.