Geomarketing: what is it and why do retailers use it?

Geomarketing is likely something you're already utilizing, whether intentionally or unintentionally, in your efforts to research locations, analyze stores, or conduct local marketing. But what is this exactly? What is the added value? And how do you use geomarketing for maximum return from your network of store locations?

Geomarketing: what is it?

Geomarketing ('geography' + 'marketing') is the collection and analysis of customer data for making strategic decisions. Think of determining the best new business locations, tailoring your stores to the local environment, closing stores without losing customers and selecting the optimal marketing mix per postcode area.

In combination with AI you can not only map the behavior of your customers, but also predict it. This way you arrive at razor-sharp revenue forecasts for existing and future store locations. AI also helps you to work data-driven towards your optimal store network.

Why is geomarketing so important to the retail sector and who uses it?

Geomarketing helps to make effective strategic decisions in various domains: real estate, sales and marketing. Many retailers use a geomarketing platform. This allows them to efficiently and precisely address particular location-related concerns with speedy and targeted solutions.

The application of geomarketing is valuable for all organizations with multiple locations, private and public, profit and non-profit, B2C and B2B. Franchise organizations also use the technology, for example for drawing up a market research report.

How do I collect the right retail data, footfall data and market research figures?

The abundance of geo-information available today is unprecedented. Loyalty programs, mobile applications, online stores, social media, open data sources, and market research are just a few examples. By leveraging this wealth of (public) retail data, you can gain valuable insights into various aspects, such as:

• The buying and moving behavior of your target group (origin, visit frequency, visit motive, combination visits) 
• Local activity (competition, perfect neighbors, traffic and footfall around your store locations)

Don't have customer data yet? Conducting a customer origin survey can be a simple and accessible alternative to implementing a customer loyalty program.

The applications are very diverse, such as:

Geomarketing for maximum performing retail locations

• Determine the revenue potential of each of your store locations
• Identify store locations that are performing below expectations
• Determine whether these branches can be brought back up to standard with targeted marketing campaigns
• Take the right action if a real estate intervention is the only right solution   

Geomarketing for local marketing campaigns with maximum ROI

• Make optimal use of the interaction between physical and online
• Choose the right type of marketing campaign for each location
• Tailor your stores, assortment and opening hours to your local customers

Geomarketing for location research with the most accurate revenue forecasts

• Clearly determine the catchment area of each (future) store location, thanks to insight into competition, perfect neighbors and footfall / traffic
• Connect your data to smart AI models for 85-90% accurate revenue forecasts
• Optimize your network: close or move stores without losing customers, open new stores in the best locations and take full advantage of the halo effect

How does geomarketing ensure more return from your store locations?

Retailers who use a geomarketing platform get more out of their network. There are several reasons for this.

They have a clear course. By following a mapped out location strategy, they can work towards their objectives. Do they use a geomarketing platform from an external supplier or do they have an internal team of specialists? Then they can rely on the advice they receive to support their (sometimes very complex) location decisions.

Does the platform also include AI components? Then you can make the right location decisions very quickly and very accurately. This way you are always up-to-date and stay ahead of the competition.                                                              

More than 200 European retailers base their location strategy on the insights from the RetailSonar geomarketing platform. Would you like to optimize the returns on your retail locations? Our experts would be delighted to provide you with more information! Don't hesitate to get in touch with us.