Does Location Intelligence Really        Matter… Today?
“In the mobile, always-on, highly     internet-connected world…  Geography will be history: Place  will cease to be a cons...
3
4
5
71% will drive 15minutes or less to    try a new  provider after     moving                     6
81% are willing  to consider   switching   providers                  7
Top Categoriespharmaceutical   gasoline    grocery   internet     phone                 8
10% off - 45% will not travel; 55% will go 15 min.          25% off - 45% will go 30 min.50% off - 82% will go 30 min; 40%...
Unaddressed admail:10 vs 30 minutedistance to storeincreases action intentby 50%Addressed Admail:10 minute distance tostor...
How far is your consumer willing           to travel?                                   11
84% of consumers will drive 20       minutes or less                                 12
80% of consumers will drive 20       minutes or less                                 13
40% of consumers will drive  more than 30 minutes                              14
Consumers prefer ads that   are locally relevant   Most take action to a location specific message                        ...
Consumer   behaviourcontinues to be influenced by   Location                  16
17
70%  unprepared to   manage the explosion of data       50%struggling to createa single view of the     customer          ...
80% of business data   has an addresselement incorporated Addressing is a keyelement for consumer   authentication        ...
Census demographicsat address/DALifestylesegmentations ataddress /postal codeCredit scoringrequires address               ...
Trade areas a criticalmarketing decisioncriteriaProspects based onhomes in trade areaMany products stay atthe address; or ...
We find Geospatial analysis is often          underutilized               Limited insight on market               dimensio...
Structured Analysis can be limiting  distance radius   geographic boundaries                                            23
Unstructured areas - distanceleverages   Unstructured analysis they will travel                       customer behaviour  ...
Optimizing your marketing programWasted message           Lost opportunity                                            25
Optimizing trade areas, a GIS puzzle                                       26
Support franchisees’customer acquisitiontargetsFocus onneighbourhoods withthe greatestopportunity to acquirenew customers ...
Traditionalradius approachoffers ahigh degree ofoverlap                  28
Each store’s tradearea defined bythe distribution oftheir customersThe Yonge Street effect                          29
Customer profiling identified distinguishing      demographic characteristicsHhld $ 0-19K      Hhld $ 20-79K    Hhld $ 80K...
Acquisition modelassigns unique scoreto each postal code                       31
32
Original Trade   New Customized    Areas          Trade Areas                                  33
Leverage GIS to Optimize customer       acquisition in 3 steps                                    34
Is there a role for trade-area locationanalysis and e-commerce providers?                                          35
High Penetration   Low Penetration     Sales              Sales                                     36
Is there a role for trade area location intelligence and mobile marketing?                                          37
The customer sees a custom map to the nearest                         retail locationThe direct marketing voice, March 18 ...
Respondent’s information is sent automatically by                      e-mail to agentThe direct marketing voice, March 18...
Location intelligence: ShopAlerts by AT&T  Location-based opt-in platform: designed to use    mobile marketing andgeofence...
Is there a role for trade area location    intelligence and social media?                                          41
Social ?? Unstructured   Demo &Psychographics  Structured Physical and Behavioural  Structured                 42
Mapping search and social activity to                geography….a start                                                   ...
Density and sentiment mapping to create hot-spots by geography                             esri case study                ...
Location Intelligenceas an essential  tool to drive       ROI                  45
Does Location Intelligence Really Matter, Today?
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Does Location Intelligence Really Matter, Today?

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  • Source: JWire Mobile Insights Audience Report Q4 2011
  • The first step: Where is your target audience located or what is your trade area? Is it within a specific city, CMA, or maybe a radius around your store.
  • Each locations trade area is different and a standard 10 km radius applied to all locations does not represent each locations true customer base Some store location trade areas overlap due to the close proximity of store locations; potential customers in the overlapping areas may belong to one postal route but are likely to frequent different locations. Thus printing one location on a flyer is insufficient and results in imbalanced Unaddressed Admail allocation Targeting is based on only 3 demographic variables weighted equally with little understanding of key demographic drivers or their multivariate interactions in identifying potential customers
  • Define a trade area for each store by associating all customer postal codes to the postal route and calculating distance from the routes to each store; graphically represent customer percentiles ranked by distance to determine boundary limits Construct individual store trade areas by geocoding all store locations and creating a buffer around each store with the respective store’s 85 th percentile distance ranking applied to historical customer data (boundary limit identified in previous step)
  • Integrate CPC proprietary geographic data with Statistics Canada demographic data to create an aggregated data set at the postal code level Weight each route on household density and customer penetration combined to ensure true representation of demographic characteristics Compare demographic characteristics of the Customer Base to the Trade Area to create an Index, and identify over and under indexed demographic variables among the many demographic variables in the data set
  • Deciling the model scores show postal codes in the lowest model decile have very low penetration of customers, while postal codes in the top decile have more than 2 times the penetration of customers than average A thematic map is produced to provide a visual representation of the neighborhoods with the greatest opportunity to identify potential customers.
  • The data utilized to accomplish this process integrates customer base information associated with individual stores, CPC proprietary data, as well as the complete Statistics Canada 2006 Census data (the most recent available). Leveraging this comprehensive modeling data set enables CPC to differentiate between areas of greatest and lowest opportunity.
  • Many Social Media apps are built with the social geography in mind. Commscore says that “Local” is at the forefront of the intersection of social and mobile trends. By definition, local equals place. Local is geographic and is the means to connect anything, anywhere. SoLoMo features are readily embraced by consumers but are marketers keeping up with the innovation? How quickly are they adopting geo-aware and SoLoMo features? Local – or location - exposes preferences, relationships and connections. Trends that can be used to understand loyalty and affinity. We can mine and quantify these interactions and connections to understand more about consumers. What are they looking for when they search, how much demand exists, where do we have supply and demand imbalance and hence opportunity and gaps? What else do people want? What are they longing for in an area, a market or community? The very things we need to do as marketers.
  • Does Location Intelligence Really Matter, Today?

    1. 1. Does Location Intelligence Really Matter… Today?
    2. 2. “In the mobile, always-on, highly internet-connected world… Geography will be history: Place will cease to be a constraint for messaging …place will cease to define a consumer”Does 2021 Main Street Matter? 2
    3. 3. 3
    4. 4. 4
    5. 5. 5
    6. 6. 71% will drive 15minutes or less to try a new provider after moving 6
    7. 7. 81% are willing to consider switching providers 7
    8. 8. Top Categoriespharmaceutical gasoline grocery internet phone 8
    9. 9. 10% off - 45% will not travel; 55% will go 15 min. 25% off - 45% will go 30 min.50% off - 82% will go 30 min; 40% will go 60 min. 9
    10. 10. Unaddressed admail:10 vs 30 minutedistance to storeincreases action intentby 50%Addressed Admail:10 minute distance tostore increases actionintent by 20% 10
    11. 11. How far is your consumer willing to travel? 11
    12. 12. 84% of consumers will drive 20 minutes or less 12
    13. 13. 80% of consumers will drive 20 minutes or less 13
    14. 14. 40% of consumers will drive more than 30 minutes 14
    15. 15. Consumers prefer ads that are locally relevant Most take action to a location specific message 15
    16. 16. Consumer behaviourcontinues to be influenced by Location 16
    17. 17. 17
    18. 18. 70% unprepared to manage the explosion of data 50%struggling to createa single view of the customer 18
    19. 19. 80% of business data has an addresselement incorporated Addressing is a keyelement for consumer authentication 19
    20. 20. Census demographicsat address/DALifestylesegmentations ataddress /postal codeCredit scoringrequires address 20
    21. 21. Trade areas a criticalmarketing decisioncriteriaProspects based onhomes in trade areaMany products stay atthe address; or arepurchased by address 21
    22. 22. We find Geospatial analysis is often underutilized Limited insight on market dimensions Choose limited attributes for targeting Consider market by structured radius 22
    23. 23. Structured Analysis can be limiting distance radius geographic boundaries 23
    24. 24. Unstructured areas - distanceleverages Unstructured analysis they will travel customer behaviour C lient D is ta nc e A nalys is10 0 90 80 70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 1 11 D is ta nc e fro m S to re ( km)60% of customers drive 10 minutes 24
    25. 25. Optimizing your marketing programWasted message Lost opportunity 25
    26. 26. Optimizing trade areas, a GIS puzzle 26
    27. 27. Support franchisees’customer acquisitiontargetsFocus onneighbourhoods withthe greatestopportunity to acquirenew customers 27
    28. 28. Traditionalradius approachoffers ahigh degree ofoverlap 28
    29. 29. Each store’s tradearea defined bythe distribution oftheir customersThe Yonge Street effect 29
    30. 30. Customer profiling identified distinguishing demographic characteristicsHhld $ 0-19K Hhld $ 20-79K Hhld $ 80K+Age 25-34 Age 35-49 Age 50-64Dwelling Rented Dwelling Mixed Dwelling Owned A B C 30
    31. 31. Acquisition modelassigns unique scoreto each postal code 31
    32. 32. 32
    33. 33. Original Trade New Customized Areas Trade Areas 33
    34. 34. Leverage GIS to Optimize customer acquisition in 3 steps 34
    35. 35. Is there a role for trade-area locationanalysis and e-commerce providers? 35
    36. 36. High Penetration Low Penetration Sales Sales 36
    37. 37. Is there a role for trade area location intelligence and mobile marketing? 37
    38. 38. The customer sees a custom map to the nearest retail locationThe direct marketing voice, March 18 2011 38
    39. 39. Respondent’s information is sent automatically by e-mail to agentThe direct marketing voice, March 18 2011 39
    40. 40. Location intelligence: ShopAlerts by AT&T Location-based opt-in platform: designed to use mobile marketing andgeofences to drive consumers into retail locations For consumers: receiveoffers, and coupons based on their specific geographic location 40
    41. 41. Is there a role for trade area location intelligence and social media? 41
    42. 42. Social ?? Unstructured Demo &Psychographics Structured Physical and Behavioural Structured 42
    43. 43. Mapping search and social activity to geography….a start esri case studySearch events, unfiltered for single dayHighlights clusters, hotspots and spatial errors 43
    44. 44. Density and sentiment mapping to create hot-spots by geography esri case study 44
    45. 45. Location Intelligenceas an essential tool to drive ROI 45

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