Its goal is to bring greater knowledge of customers and prospects. For this, it involves geomarketing studies consisting in analyzing the profile behavioral and socio-demographic of the population living in a given geographic area. For companies, this is a prerequisite for setting up any effective marketing action.
Geomarketing analysis brings you more data and factual elements to understand your business territories and to make the right decisions. In this article, we dig deeper into geomarketing applications and tools.
Definition of geomarketing
Geomarketing includes all marketing actions that use both data geographic Where cartographic, socio–demographic modeled and socio-behavioral. This is a distinct concept and much broader than localized marketing which relies on mapping and a Geographic Information System (GIS). Its use promotes, among other things:
- carrying out implantation studies;
- optimizing the distribution of leaflets;
- optimization of canvassing actions;
- identification of commercial potential;
- and making good merchandising decisions.
In addition to data outside the company, geomarketing also relies on internal data specific to the company. We still do not realize it, but 80% of the data – the establishments in the territory, the customer file – have a geographic dimension. A combination of these different sources of information and their cartographic representation help you better analyze your field of operation to better exploit it for commercial purposes.
Direct applications of geomarketing
In its concrete application, geomarketing consists first of all in accept a large amount of data relating to the company’s activities in a given area. This consists in a second step in give a spatial, meaningful and enlightening dimension to these data thanks to cartographic representations.
Franchised, geomarketing is a valuable tool that facilitates the study of the flow of consumption and the behavior of economic individuals in a given area. Closely linked to marketing, it is very useful for carrying out various activities of the company thanks to the use of the data collected, whether it is:
- the CRM customer base,
- the purchasing journey,
- stock status.
Its applications extend to a very wide field.
To take decisions
Geomarketing helps you, through simulations, to define your franchise area with precision. While its usefulness is essential when preparing to launch a commercial activity, it is also of invaluable help to decision-makers to make smart and informed decisions throughout the life of the company.
In case of deterioration in turnover, the analysis of geomarketing studies reports will be used to adapt offers to customers of your target area and to improve your communication campaigns. They will also be used to improve your merchandising and update your sales strategy so that it grows with your customers.
For a company in the development phase, the expansion strategy will have to take into account the segmentation of sales representatives’ portfolios in order to optimize them according to the profile of each client. Thanks to geomarketing, all parameters are concentrated in one place and are considered in decision-making.
Find the right locations
Franchisees use geomarketing primarily to determine the ideal commercial location to install. By visualizing and analyzing the data collected, it becomes easier to identify the geographical areas whose structure corresponds to the profile of the areas where the stores which achieve the best turnover are located.
The zones thus determined will therefore be targeted as locations for points of sale. The analysis therefore leads to reviewing your positioning to give up an area or to expand your areas of presence to increase your sales performance. It will also have to consider cannibalization to avoid poor management of catchment areas.
Adapt products and merchandising to local products
In addition to determining the optimum implantation sites to set up stores, geomarketing is also used to determine the products that best suit a geographic space to meet the needs of residents. With the right location and the right products, it will then be used to determine the right commercial actions for customers in the area studied.
Geomarketing is a powerful tool used to improve prospecting. Understanding the behavior of individuals that it promotes is ideal for analyzing the geographic distribution of high potential customers and to locate the deposits of potential customers. The results of these studies are then used to prospect for the targets most likely to respond favorably to the various offers of the company.
Set up effective marketing actions
Geomarketing puts all the information at your disposal for establish the profile of customers and prospects present in your catchment area. It thus offers the means to determine with precision the most suitable means of communication for achieve the company’s marketing objectives.
You will be able to determine the types of advertising campaigns to run (email marketing, Pop-up, social media advertising, SMS, etc.) to send your message to customers based on where they live. You will also get to optimize your advertising investments by exploiting your knowledge of the particularities of the local populations.
The advertising message will be adapted both in terms of its form and its content to correspond to its target. This is often used in direct marketing to carry out BtoB or BtoC prospecting.
Organize the sales force
Geomarketing is not just about managers. Its application involves taking into account the potential of each targeted area, in terms of:
- penetration rate,
- volumes of customers and prospects,
- and target movement behaviors.
The aim of this study is todevelop sales plans to organize visits to customers and prospects. On the web, its application includes:
- maps and dashboards accessible via a computer.
It makes it easier for sales reps to organize productive tours while reducing transport costs and fatigue.
Geomarketing uses several tools to collect and assemble the data necessary for the various studies that will lead to the achievement of objectives. company sales. Among these tools we have:
Geomarketing databases are most often lists of customers and prospects grouped together according to certain predefined criteria. This may be, for example, the socio-demographic or geographic distribution. Databases bring together different types of data:
- age and sex of inhabitants,
- composition of families, etc.
- Public transport,
- Main highways,
- zone size, etc.
- Mobility of inhabitants,
- traffic, etc.
- Economic situation,
- wealth index, etc.
- Buying habits,
- most used media,
- consumption potential of a given product, etc.
- Geolocation and influence of competitors in the area.
Most of the geographic and statistical information comes fromIgn, of the’INSEE and field surveys. The modeling is then carried out by cartographers, geographers and other competent experts according to the needs of the business.
These databases can be used for commercial purposes by maintaining the relationship with customers. For a study perspective, the data collected is used for a geographic analysis in order to target white areas. They are also used for:
- test a product,
- evaluate direct communication,
- or manage and control sales promotion.
Geographic information or spatial analysis systems are computer tools used to represent and analyze the referenced geographic data. They consist of two main elements which are:
- geographic databases (BDG);
- data entry, analysis, management and representation software.
Three other components are added to the list to make data processing possible:
- the users ;
- the materials
- processing and analysis software.
Software used for geomarketing
These are programs specially designed to facilitate the development of an implementation strategy. The principle consists of analyzing geographic data as well as market trends which vary according to location.
These IT solutions in SaaS mode facilitate the accurate data collection and the determination of rates blanket of the market. They have certain features thanks to which current geographic data is linked to traditional marketing:
- The implementation of analyzes relating to the catchment area, geographic area and consumer behavior.
- The presentation with cards through a customizable interface. The software also presents a palette of tools to customize the presentation.
- the sharing reports through a dissemination mode or an integrated data sharing option to strengthen collaboration between actors at different levels.
Geomarketing is a strategic marketing tool that generally relies on mapping and a GIS to bring you perfect knowledge of your heritage. It facilitates you:
- decision-making at the time of your establishment,
- but also throughout the life of your business.
Its application helps you to know precisely your customers and prospects and to save time by communicating effectively. You will also be able to choose the optimal location for your business, assess the competition and optimize your marketing strategy to control your costs.
More and more companies are using this solution; it serves them to the detriment of those who do not.