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?
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 constraint for messaging …place will cease to define a consumer”Does 2021 Main Street Matter? 2
70% unprepared to manage the explosion of data 50%struggling to createa single view of the customer 18
80% of business data has an addresselement incorporated Addressing is a keyelement for consumer authentication 19
Census demographicsat address/DALifestylesegmentations ataddress /postal codeCredit scoringrequires address 20
Trade areas a criticalmarketing decisioncriteriaProspects based onhomes in trade areaMany products stay atthe address; or arepurchased by address 21
We find Geospatial analysis is often underutilized Limited insight on market dimensions Choose limited attributes for targeting Consider market by structured radius 22
Structured Analysis can be limiting distance radius geographic boundaries 23
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
Optimizing your marketing programWasted message Lost opportunity 25
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 2011 38
Respondent’s information is sent automatically by e-mail to agentThe direct marketing voice, March 18 2011 39
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
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 esri case studySearch events, unfiltered for single dayHighlights clusters, hotspots and spatial errors 43
Density and sentiment mapping to create hot-spots by geography esri case study 44
Location Intelligenceas an essential tool to drive ROI 45