In business intelligence, location intelligence (LI) is the process of deriving meaningful insight from geospatial data relationships to solve a particular problem.
It involves layering multiple data sets spatially and/or chronologically, for easy reference on a map, and its applications span industries, categories, and organizations.
Location intelligence experts can use a variety of spatial and business analytical tools to measure optimal locations for operating a business or providing a service.
The term “location intelligence” is often used to describe the people, data, and technology employed to geographically “map” information. These mapping applications can transform large amounts of data into color-coded visual representations that make it easy to see trends and generate meaningful intelligence.
Location intelligence gives businesses the power to map, analyze, and share data in the context of location. AI machine learning with LI enables trendspotting and prediction to support market assessment, site selection, risk management, asset tracking, and other core business needs. In short, machine learning manages complex data while location intelligence gives that data the crucial context.
It for sure will take more than 1 article to discuss the uses of machine learning in location data for business and industry since the impact is far more diverse.
Considering the competition in today’s digital world, it is essential for a firm to understand the customers’ unique location and context has become more essential for all businesses. Businesses that do not adapt to this transformation are highly to not compete and survive the ever-changing world.
What does data, intelligence – be it digital/artificial/location provide firms? This is the key question – Intelligence services in any form provide businesses/firms the focus on enhancing customer experience, understand and meet their expectations, providing customers a personalized experience.
- Location Intelligence when used together with geocoding and big data provides amazing outputs and results. Location intelligence is a part of business intelligence. Businesses collecting customers’ information/data while purchase has become normal and data such as customers’ zip codes, cities, and countries, add importance and significance.
- The popularity of smartphones, and the introduction of various location services, give businesses access to all kinds of data – most importantly, dynamic location data. Mobile devices generate real-time data on customers’ location, the places/businesses they visit, time spent in a business location, and even the frequency of their visit.
- The combination of the trio AI – ML and LI enables business leaders to drive strategic initiatives such as customer engagement, site location, risk mitigation, etc. Artificial Intelligence and LI unfasten trends that help businesses understand their markets and their potential.
- Location Intelligence is defined as the capacity to organize and understand complex data using geographic relationships. LI organizes business and geographically referenced data to reveal the relationship of location to people, events, transactions, facilities, and assets.
- The creation of location intelligence is directed by domain knowledge, formal frameworks, and a focus on decision support. Location cuts across through everything i.e. devices, platforms, software, and apps, and is one of the most important ingredients of understanding context in sync with social data, mobile data, user data, sensor data.
LI – Market Size
According to MarketsandMarkets, the global location analytics market size is expected to grow from USD 13.8 billion in 2020 to USD 26.7 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 14.1% during the forecast period.
LI – Top 4 Benefits
- For any organization to be a successful one, a strategy shall be in place. Strategy can be on any form and criteria depending upon the business and industries. The role of location intelligence in the business/marketing strategy is humongous.
- Location intelligence offers businesses a detailed and deeper insight into the outcomes that prior marketing efforts might have had, as well as how they impacted the firm’s performance metrics.
- Location Intelligence helps businesses identify opportunities and help them plan accordingly. From production to delivery of services and products, with the help of LI, communication and participation can be streamlined and channeled better.
- Businesses are now gradually implementing location intelligence as a part of their marketing strategy. By doing so, businesses tend to gain improved information on their consumers, allowing them to act involving customer bases, distribution channels, networks, as well as to maximize marketing decision making.
2. Targeted Marketing:
- Knowing the demographics of their clients helps businesses to target their market better and generate a higher ROI.
- Obtaining customer data from various sources is easy – the difficult part is to channelize the data and use it appropriately is the key.
- LI provides businesses a deeper understanding of the consumer and highly accurate targeting. Businesses will not be able to reach the right customer with detailed information on their shopping and buying patterns.
- With the implementation of location intelligence – businesses can provide more relevant offers based on customers’ location. The engagement rates are higher with the implementation of LI services.
- When it comes to push notifications, Location-based notifications perform two to three times better than generic notifications.
3. Customer Journey:
- With location intelligence, businesses can now easily discover their customer’s locations before and after visiting them.
- This helps businesses to analyze the pattern and Identify upsell/cross-sell opportunities. Not only that, AI helps businesses to identify partnership and sponsorship opportunities as well.
- LI provides the most important insight of data to businesses about their customers. By using these valuable data, businesses can now augment their online customer information with offline behavioral data.
- This includes their brand affiliations, interest, visit patterns and distance traveled.
4. Magnify BI:
- Location Intelligence gives the heat maps of urban density, target audience preferred routes, and trendy neighborhoods. Location insights coupled with other key data can reveal trends that could set a new precedence for the businesses.
- The business intelligence data obtained with the help of LI always helps businesses to enhance their business vision. This vision aligns the investors, stakeholders, multiple business units on a straight line.
- Like with any business intelligence tool, location intelligence is whatever you make of it. Using it in the right way can magnify business opportunities.
Location Intelligence is considered to the glair that binds data together. Irrespective of their size and business, LI provides opportunities by enabling enhanced and multi-dimensional analysis. The impact on marketing and distribution is particularly strong with the amount of data being put in use.