4 Industries Using Location Intelligence to Make Better Decisions
Today’s companies are becoming experts at extracting business intelligence from data and making business decisions. One element that’s still underutilized is location intelligence.
What is location intelligence?
Forrester defines location intelligence as “the practice of collecting and managing customer location data, enriching it with other data sources, and analyzing for contextual insights for the purposes of informing optimized actions, decisions, and customer experiences.”
Location continues to gain importance as organizations and users seek to gain spatial context to make more informed decisions from data. Such correlations can help corporations detect geospatial patterns and trends giving them a competitive edge in an ever-evolving marketplace.
Awareness of the value of location information for enriching business intelligence insights is growing. With an estimated 80 percent of data having a location component, it’s not surprising that a recent study by Dresner Advisory Services reported that 53 percent of respondents considered location intelligence to be very important to their businesses.
The purpose of this article is to help readers get a good feel for how location information can enable their businesses to make better decisions. Here are some examples of business decisions made by industries such as financial services, insurance, telecommunications, and retail using location intelligence.
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In today’s banking environment, location information has become a crucial element of channel optimization.
Now more than ever, banks and credit unions must find ways to keep up by transforming their branch networks and re-evaluating the importance of location.
These analytics also help to inform smarter opportunity-based sales targets, tailored to each branch’s unique facility characteristics and market dynamics – saying goodbye to blanket goals that are often mismatched with each location’s true potential as examples of business decisions.
Precisely summarizes the importance of location information in modern banking this way: “Location intelligence and analytics furnish contextual data about the areas where customers work, play, and shop to help banks make more accurate decisions, not only about site selection, but also about product and service offerings across digital and physical channels.”
In general, insurance companies use location intelligence to evaluate and minimize risk.
For example, with property and casualty insurance a unique and persistent identifier, the PreciselyID, can be attached to business data, eliminating the guesswork in property identification and providing a straight-forward way to enrich that address with information relevant for making decisions.
Capabilities that can make a huge difference include spatial analytics, and accurate data on catastrophe risk factors like wildfires and other land-based events, along with major weather events and natural disasters.
Underwriting applications can then retrieve all available information relating to that property based on its address. This information, in turn, can help the insurance company evaluate property risk levels and the amounts and types of coverage it will require.
Location intelligence and data enrichment solutions are key to expanding critical capacity and delivering optimal service. With them, you can pinpoint the locations of cell towers, small cells, and Wi-Fi with new levels of precision – which is particularly important against the accuracy requirements associated with 5G wavelength frequencies.
Executive and marketing leaders can also use location intelligence to target potential customer addresses for eligible services. Engineering can use it to track and analyze traffic geospatially to identify areas where network resources are being over- or underutilized.
While there may be several different priorities for telecommunications companies, the solutions have one thing in common: the analysis of data – particularly location data.
Retailers use location information to help them better serve both in-store and online customers.
One common application is location planning. Location intelligence built from understanding customer data can help retailers understand where their target customers reside and how they travel, which in turn helps determine the best sites for both stores and distribution centers. The correlation of location information with other customer information may indicate that the best way to reach a particular customer base is online rather than at a physical store location.
Location information, when correlated with other data such as demographics and customer buying patterns, can also drive marketing outreaches that are personalized according to the interests of customers in a given area.
To see more examples of business decisions made by industries using location intelligence, read our eBook Essential Context to Business Decisions with Location Intelligence and Data Enrichment to learn more about improving customer experience, automate operations, mitigate risk, and accelerate growth with essential context and loction intelligence and data enrichment.