Looking at the competitive marketplace today, one will notice that brands that are truly attaining success are the ones that are listening to and understanding what their customers really care about. Traditional forms of marketing, though previously proven, do not fit the bill like they used to and this is where leveraging data technology especially Geographic
Information System (GIS) comes in. Breaking away from the one-mould-fits-all approach, GIS allows brands to visualise their customer base by analysing the demographic, psychographic, their spending and purchasing characteristics, which facilitates accurate customer segmentation. This localisation, on the basis of geographical analysis, can also help brands in finding more customers like their existing ones.
Refining marketing tactics by employing the use of data technologies and personalisation can help companies appeal better to different segments and focus efforts in target areas which are more likely to give better results. It has been observed that organisations tend to overspend typically when it comes to customer acquisition while it is actually much easier to build brand loyalty amongst your existing consumer base. With the help of GIS, marketers can focus on the most valuable individuals of the lot, who have potential to become brand enthusiasts in the near future.
Gone are the days when brands needed to mass mail an entire database that may or may not actually have their target audience. Using GIS, marketers can become more agile and seize new market opportunities that can help them stay ahead of the competition. Time, money and resources can be saved by understanding where the largest concentrations of customers are located and how they interact with a brand (in terms of purchase loyalty, lifestyle characteristics etc.)
It’s a fact that customer databases tend to be inherently geographic, as each transaction carries within it location information that can be vital for identifying a core group of customers and their unique buying habits. Once a brand is able to identify the trends and patterns, it can actually be able to construct a perfect model of what an ‘ideal’ customer looks like. This will help in ensuring that all the marketing efforts resonate with the customers on both a logical and emotional level. Thus, by directing their marketing budget on the most profitable geographical areas, brands can maximise their ROI and also gain a competitive
Take the example of retail space, speaking on a broader level- manufacturers of consumer goods can leverage spatial analytics and GIS to track social media activity, that can help in the identification of brand preferences or purchasing habits in certain geographical locations. Similarly using the technology or business geographic a corporation can, for example, house its manufacturing plant is a zone with lesser population density or one near a water source that could provide clean energy.
At the end of the day, the success of any business comes down to its ability of being able to deliver what its customers need. A brand will not be able to cater to these wants however, unless it is able to understand them. By using GIS and data analytics, brands can now learn so much more about their customer, in fact, more than they ever could before. Given the fact,
that not all customers are created equal, using data technologies can help brands perform much more sophisticated customer segmentation that can help them in creating highly- targeted marketing campaigns. Leveraging GIS data and analytics, brands can not only deepen their engagement with existing customers, but also attract new ones.
As authored by Amarsh Chaturvedi and originally published on The Economic Times Brand Equity