Report • 30.11.2016

Geomarketing opens up new opportunities for the retail sector

Real-time data will play a decisive role in the future

At this point, geomarketing can do more than just let you know where your customers are located. Digitization and fast big data processing permit access to increasingly comprehensive and differentiated information about potential markets and customers. The retail industry is also a beneficiary of this, especially when it comes to preferences of individual customers or their mobility behavior.

Microgeographic data: market analysis at the smallest spatial scale

Generally, market development can be more precise with a narrowed down database. As the first company in Germany, Nexiga has started to collect and make microgeographic data usable. The company has one of today’s most comprehensive databases providing local information.

Thomas Brutschin, CEO of Nexiga, explains, “Microgeographic information is the smallest, most comprehensive level of data available. Based on more than 22 million buildings in Germany, homes offer an enormous information density. This makes the individual home the smallest spatial unit in geomarketing. With the help of our database, we characterize the occupants and their environment in an anonymous, confidential and secure manner that complies with data protection principles. Our market data includes well over 300 features with more than 500 characteristics – for example, building characteristics, infrastructure and mobility, living situation or consumption patterns, social demographics, consumer behavior and leisure time activities, vehicle assets as well as neighborhood and location characteristics.“ This knowledge can subsequently be included in a market analysis to identify and understand the respective customer base and address it based on its preferences.

Photo: Geomarketing opens up new opportunities for the retail sector...
Source: microm

Analyzing buying behavior and product preferences

There are approximately 82 million people living in Germany. Yet the types of products they buy and the advertising medium they most respond to varies with each individual person. That’s why the microm Company specializes in the analysis of social imprints and individual value perception. “We rely on neurosciences and specifically limbic types for this analysis,“ explains Rolf Küppers, CEO of microm. “Consumers are divided into seven groups, based on how they respond to offers or store concepts. You can subsequently control category management processes and product portfolios by analyzing their first choices, buying behavior or product preferences. This allows us to see which offers are best suited for the identified consumer type and how it is best addressed.“

Filtering big data properly

Today, there are already mounds of data available and data volumes keep steadily expanding. The major challenge of big data is to filter and properly mine this data. When it comes to geomarketing analysis, it’s crucial to only use the data that is relevant to a company and to reach the defined target groups.

Generally, the data comes from statistical agencies, but it can also be obtained from Telekom, TomTom or OpenStreetMap (OSM), says Brutschin. He adds that economic organizations and association, business databases, mail order companies, consumer research or site visits can also be used. However, data obtained from social networks and smartphones can only play a role if data protection challenges have finally been solved.

As of late, microm has used movement data that is based on consumer mobility behavior and is generated in collaboration with the company’s Swiss partner Senozon. Thanks to this, the company is able to predict which target group is located at a specific location at a certain time of day and why it is there. “Typically, applications include time-sensitive digital outdoor advertising; store hours and the perfect store locations are determined according to footfall and consumer traffic,“ adds Küppers.

3D building model from Cologne with consumption focusses: Centers of...
3D building model from Cologne with consumption focusses: Centers of consumption, described through the consumption focus index, are not individual stores but densified spatial areas. These include shopping centers, specialized market centers and concepts, outlet as well as classic shopping areas.
Source: Nexiga

Utilizing customer insights for different types of advertising

One goal of geomarketing is to identify and locate potential customers. Having said that, an analysis of existing customers can also deliver concrete customer insights into target groups that have previously not been defined. Brutschin explains, “For instance, previously unknown potential buyers for cars with novel drive concepts could be identified or narrowed down and specified.“

Topics like couponing or location-based advertising with relevant shopping or discount tips to generate impulse buys are a part of geomarketing. Targeted push notification campaigns can be sent via smartphone within a distance of up to 100 meters from the POS. This brings customers directly into the stores in real-time.

Real-time data will play a decisive role in the future 

Real-time data will also become increasingly important in the future. “Having said that, the media approach and sales offers must be adaptable and flexible,“ emphasizes Küppers. “The technical development will definitely support this in the future. Digital screens or mobile ad formats already indicate an early clear trend in this direction.“

Küppers believes geomarketing will learn to handle the increasing dynamic data volumes and make them usable and useful for the retail sector. Dynamic mapping of pedestrian behavior is another first approach, according to Küppers. In addition, the rise of available data and its utilization will also increase the significance of geomarketing as a data-driven approach. A critical success factor will be in creating a suitable interface between the online and offline world.

 

Advertisement
Author: Melanie Günther; iXtenso

related articles:

popular articles:

Thumbnail: Photo: Instant payment solutions offer great potential...

Specialist article • 16.06.2017

Instant payment solutions offer great potential

For customers, making payments is becoming as easy as sending an email

Thumbnail: Photo: Xovis – people flow monitoring for the IoT age...

Video Advertisement • 04.07.2017

Xovis – people flow monitoring for the IoT age

More than 40.000 Xovis 3D sensors are deployed in the retail industry

Thumbnail: Photo: Robots and automated processes are the future of warehouse logistics...

Report • 01.07.2017

Robots and automated processes are the future of warehouse logistics

Staff shortages and the e-commerce boom call for all resources

Thumbnail: Photo: Increase consumer loyalty through mobile self-scanning...

Company News • 09.05.2017

Increase consumer loyalty through mobile self-scanning

Scansation helps retailers create personalized offers for anonymous consumers

Thumbnail: Photo: Retail replenishment and price optimization: Machine Learning solutions...

Artificial Intelligence • 27.04.2017

Retail replenishment and price optimization: Machine Learning solutions for retail

… and what the retail industry has learned from particle physics

Thumbnail: Photo: The right touch when it comes to price changes...

Electronic Shelf Labels • 12.06.2017

The right touch when it comes to price changes

Who is afraid of ESL?

Thumbnail: Photo: Experience SimonsVoss SmartIntego wireless lock and access control...

Company News • 13.07.2017

Experience SimonsVoss SmartIntego wireless lock and access control integration at IFSEC 2017

Quick and easy way to integrate wireless locks and access control

Thumbnail: Photo: Click & Collect: the future of online grocery shopping...

Company News • 05.04.2017

Click & Collect: the future of online grocery shopping

Smart services and techniques are constantly improving the customer experience

Thumbnail: Photo: Enhanced customer service through productivity savings...

Case study • 07.06.2017

Enhanced customer service through productivity savings

An APG case study in partnership with Grupo Compostelana

Thumbnail: Photo: European retail trade shows – no signs of slowing down...

Company News • 24.05.2017

European retail trade shows – no signs of slowing down

Technology vendors are really keen to showcase their cutting-edge products

Supplier

APG Cash Drawer
APG Cash Drawer
5250 Industrial Blvd NE
55421 Minneapolis
Scansation GmbH
Scansation GmbH
Zielstattstr. 133
81379 München
Xovis AG
Xovis AG
Industriestrasse 1
3052 Zollikofen

NCR GmbH
NCR GmbH
Steinerne Furt 67
86176 Augsburg
StrongPoint
StrongPoint
Schießstrasse 35
40549 Düsseldorf
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden
QUAD GmbH
QUAD GmbH
Windmüllerstraße 30
59557 Lippstadt
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning