Specific knowledge of the locations where customers are based and of the spending patterns in different areas can be used to improve direct marketing by making it more personal and effective, resulting in an increase in sales and profits.

At a Glance

Several technological developments have emerged in recent years to assist businesses with determining the location of their customers. Data collection from purchases both online and in-store gives the company access to geo-demographic information about their customers that can then be used in location analytics. Location analytics, which the Harvard Business Review predicts will “transform retail,” is a way to understand customers’ online behaviour and improve customer loyalty. Another immediate resource for location data is web analytics, and companies should start using it because 98% of retailers in the IR500 list already are.

Even More Ways

Other methods of mapping out customer locations that are more traditional and were employed before the digital revolution are open source data and census information. Third party data can also be purchased to provide a more rounded understanding of customers and their lives.

This is useful because different customer segments respond well to different forms of marketing and the more data a company is able to analyse and map, the more targeted and diverse their marketing efforts will be.

Conclusion

Customer location data should inform the marketing strategy of any business. In the current competitive market, it’s important to use marketing to make customers feel that the company truly cares about them. This can be achieved with the use of location data, for example, through door drops with local promotions that promote convenience, or surprise gifts chosen to appeal to a customer’s particular interests and profile.

Targeted marketing messages not only have a positive effect on sales in the short-term, but also help to create customer loyalty in the long-term. If a customer becomes attached to a certain brand or business, they’re more likely to go to them first for their needs, and purchase from them over a competitor.