How Big Data Geomarketing is reshaping Offline Retail
Big Data is quickly reshaping practices and approaches to business management, even in the least obvious industries: soon enough everyone, from the corner’s shop to the major infrastructure will analyze territory based datasets for their construction sites.
Business are now leveraging data sets about geographical locations and demographical factors for a certain spatial area in order to invest more wisely and spot, assess and address opportunities overseen by competitors. Structured analysis encompassing a wide range of parameters have become available and accessible to anyone with a limited investment and investors don’t seem to be loosing the opportunity.
In practice, geo enriched information are added to preexisting data sets to connect the dots and find missing links, the new information helps companies in different industries from advertisement to insurance have a deeper understanding of their target audiences and competition environment, manage risks and calculate more accurate projections.
For example a business engaging in home delivery activities, could exploit overlayed, geocoded information on city urban design, streets network and traffic according to different parameters in order to effectively calculate the profitability and timing of its operations in a cost efficient manner. Such analysis would have required months of expensive studies until a few years ago and today are accessible to little businesses and enterprises thanks to big data.
In a parallel way a new business owner can wisely pick the best catchment area store location for his new retail point by analyzing the time it takes to costumers to get to the shop by foot or with local transport, against the presence of competitors or potential substitutes in the same area, or monitor and benchmark the results of his current brick and mortar venues. In the same fashion a great distribution retail chain can save millions while opening a new supermarket along one major traffic junction versus a different one, pick one city to build a new shopping mall over another.
Location intelligence is in fact disrupting the real estate industry as well, investors have now access to deeper information about the potential sites that they can compare and overlay with their current data for a more aware vision of a certain block, town or country. Similarly geospatial analysis and geomarketing tool help local municipalities, insitutions and policy makers form their development projects in collaboration with architects and urbanists and shape better spaces for their citizens and more attractive hubs for profitable businesses in a sustainable way.
Some counties and districts, for example, successfully exploit geomarketing and spatial data to deliver better law enforcement, emergency and viability services to its citizens, who can access the data with different authorization levels to better plan their activities in a transparent way. In the future more and more local institution will implement Geographic Information Systems (GIS) solutions and geo data enriched maps with user friendly visualization wil be made available to taxpayers as the smart cites trend suggests.
As with many contemporary disruptive innovations, availability and usability is crucial to the spreading of such analytical tools, modern location analysis tools consist in fact of cloud-based solutions and don’t require dedicated teams of data scientists to be operated, thus becoming a valuable asset for small investors, entrepreneurs and researchers as well as a powerful weapon in the real estate investor’s arsenal.
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