The Business Value of Geocoding in 2020
Geocoding is the process of associating a data record with a specific point on the surface of the earth using latitude and longitude (“lat/long”) coordinates. In today’s global economy, having accurate and reliable location information regarding both customers and logistics has become vitally important for many enterprises. In this article, we’ll take a look at some specific ways geocoding can add value to your business.
More accurate location information
The process by which businesses ingest location information usually involves, at some point, humans transcribing street addresses and postal codes, and adding them to data records. Because of that essential human element, it is not uncommon for such entries to contain errors. In addition, location information that includes street addresses can become invalid or inaccurate when, for example, an urban road network changes or a rural area begins to be built up.
Inaccurate location information can translate directly into increased operational confusion, higher product delivery costs, and decreased customer satisfaction. But geocoding minimizes such disruptions. One of the first things a good geocoding application will do is to validate street-level location records using a comprehensive geodata database, and correct (or at least flag) any inconsistencies or inaccuracies.
Better business insights using location intelligence
The use of big data/cloud native analytics to uncover business opportunities and risks is growing rapidly. In many cases, a critical element of such analyses is the inclusion of relevant location information, so that significant geospatial relationships are taken into account. However, raw street addresses and postal codes do not provide sufficient information for analytics or machine learning applications to discern the geospatial relationships between entities. For example, the way in which “123 Elm Street” and “456 Oak Street” relate to one another geographically is not readily apparent, even if both addresses are in the same postal zone.
By converting street-level address information into standard lat/long coordinates and attaching a unique and persistent identifier, such as the PreciselyID, geocoding provides all the information needed to allow a business analytics system to directly factor geography and additional attributes into the analytical process.
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Business operations in industries as diverse as insurance, financial services, and telecommunications are more reliant than ever on location intelligence. See what you should consider when selecting geocoding technology.
More targeted customer marketing
Geocoding produces location information that is ready to be integrated into business processes and when needed, mappable. The accuracy and reliability of this geocoded data, along with additional attributes such as consumer data and demographics, facilitates targeted marketing to potential customers in designated geographical areas.
For example, borderlines based on postal codes (such as ZIP Codes in the U.S.) are unlikely to correlate with target demographic areas. So, a campaign that aims at delivering marketing materials to certain ZIP Codes to reach a particular demographic population is likely to result in a lot of wasted effort and expense. But when geocoding and adding consumer data and existing customer information, the outlines of the target area can be precisely delineated to create a catchment area and conform to the actual living patterns of the desired population.
Precisely provides a comprehensive geocoding solution
Precisely Spectrum Geocoding allows you to organize, locate, and geo-enrich address data on a global scale for integration into your business information applications. Access the most complete global geocoding coverage available including highly detailed street maps for the U.S., Canada, France and Australia as well as address point data around the globe from within a variety of solutions including on-premises, on-demand, natively in cloud native/big data environments, APIs, a software-as-a-service (SaaS) application, or software developer kits (SDKs).
Whether it’s extracting location-based business planning insights through cloud native/big data analytics, formulating an appropriate marketing strategy based on the demographics of a target area, or determining the most efficient routes for product deliveries, having the kind of accurate and precise location information that Spectrum Global Geocoding provides can give your company a real competitive advantage.
Interested in learning more? Read our eBook: Geocoding for Business.