Why Location Intelligence Is Important For Your Business
Melissa IN Team | Location Intelligence |
When marketing was focused on brick-and-mortar stores, the location of the store was paramount. If it wasn’t a good enough location, customers may not reach it. Today, in the e-commerce era, the focus has shifted to customer locations. Customers aren’t coming to stores – stores are sending their products to the customer and customers expect their orders delivered literally overnight! Delayed or failed deliveries can harm customer relationships as well as have a financial impact on the company. The only way for companies to deliver an optimized experience is to have reliable location intelligence.
What Is Location Intelligence?
“123, Amazon, Paradise Heights, Mumbai”
By itself, this data isn’t worth much. The value of this data comes from the information gleaned from it. Location Intelligence refers to the insights derived from analyzing such data. For example, wherein the city is this address, what is the delivery point, how does one get there, etc.
Location intelligence relies on having access to high-quality spatial data. This could be any form of data that is directly or indirectly linked to a location or geographic area. It includes street addresses, grid references and geocoordinates. It combines this data with business data to find connections between the location of an individual and assets and transactions.
Location intelligence has the potential of not just making delivery timelines smoother but also improving analytical workflows and business insights.
Understanding The Advantage Of Location Intelligence Over Street Addresses
Let’s consider the above address; “123, Amazon, Paradise Heights, Mumbai”
With just the address, a shipment may not be deliverable unless the delivery agent is familiar with the building and knows where it is. In the case of large cargo, it may also be possible that deliveries are not permitted through the main gate and there is a separate delivery point. Thus, while it may seem like you have all the information required to reach a customer’s physical location, it may not always be the case.
Location intelligence leverages the insights gained by coordinating the street address with geocoordinates to get an exact delivery point. It is more accurate especially when you take into consideration the fact that building and street names may change without affecting the physical location.
Who Needs Location Intelligence?
Location intelligence has uses across industries. In the case of retail, it helps optimize logistics and improves the overall customer experience. Having good location intelligence also provides business insights into the demographics and preferences of the people living in an area. This in turn could prove beneficial for targeted marketing campaigns.
In the case of the insurance sector, location intelligence can play a critical role in assessing principles and insurance liabilities. Incorporating the same in interactive maps can also help customers check insurance costs independently and thus bring in a sense of transparency.
Similarly, when it comes to financial institutions, location intelligence could aid in early fraud detection. For example, an alert may be sounded if a customer accessed an account from two different places at the same time.
Key Benefits Of Location Intelligence
As the virtual world continues to expand, location intelligence is becoming increasingly important for smooth operations. The benefits offered include:
- Quicker Deliveries
There are many buildings that are flanked by two streets. Thus, they may have 2 or more entrances. In such cases, the address alone is not enough. It may help the delivery agent reach the building but without knowing which entrance to stop at, valuable time may be lost. If the delivery agent is unable to find the exact location, the shipment may be returned. Of course, the company can call the customer and get the correct address but as a result, the delivery would be later than designed and the costs would be double.
- Improved Efficiency
Location intelligence can help operational teams optimize route planning and thus improve order fulfillment rates. On-time deliveries keep customers happy. It also means employees do not have to chase down lost orders and have fewer complaints to deal with. Thus, they can focus on more important tasks. The direct impact of this improved operational efficiency will be quickly visible in the company’s profits.
- Reduced Costs
When an order isn’t delivered right the first time, shipping costs rise exponentially. First, there’s the return shipping cost to be calculated. Then, there’s the cost of attempting a second delivery. In some cases, especially when it comes to perishables, the product itself may need to be replaced. Today, even groceries are ordered online and you can’t deliver wilted lettuce just because the delivery was delayed.
- Higher Customer Loyalty
In the current scenario, product differentiation and pricing are not as important as customer service. A customer’s decision to make a repeat purchase comes down to the experience they had placing the first order. If the order doesn’t reach in time, they may love the product but may choose to shop elsewhere. On the other hand, even if the product was marginally more expensive but the delivery was prompt and the experience was smooth, customers are likely to stay loyal to the company. They will also speak well of their experience, thereby giving your brand good word of mouth publicity.
Developing A Good Location Intelligence Strategy
Given the way location intelligence can benefit an organization, there’s a critical need to develop good location intelligence strategies. For this, you need to correlate data with geographic coordinates and information from external databases such as consumer spending charts, market research, etc. But, before you can do that, you need reliable data.
Companies collect data in myriad ways and address data must always meet high-quality standards. It must be complete, accurate, valid and follow a standardized format. This is where address verification becomes important.
Address verification tools provide real-time feedback on the accuracy and validity of an address while also formatting it and enhancing it wherever required. Doing so ensures that the addresses in your database are trustworthy and without duplication. Always know that good data is the foundation of good, actionable intelligence.