There’s a reason why we keep track of people through census data. For the government, keeping a census lets the authorities know how many people are in specific areas, what the demographics are, etcetera. This lets them know valuable information that helps keep the overall population safe. The more you know about a demographic, the better you can care for the needs of that demographic. With that being said, the government is not the only organization that collects data about certain demographics. Companies and corporations do the same thing — legally and safely. Why? Knowing about a demographic can help companies market their products, decide where to build new plants or stores, and fulfill the needs of their consumer base. A new product can be designed with a specific demographic in mind thanks to location intelligence and geospatial data analysis. For that matter, a company can make plans for the future based off of demographic reporting. Of course, it’s important that this kind of analysis is done in a way that is non-invasive and accurate. If data is skewed in any way, or incorrectly reported, entire marketing plans can be made based off of bad information. This can lead to disaster. Below, we’ll explore exactly what location intelligence is, how it’s collected, and what it means for the business world.
What Is Location Intelligence?
Essentially, location intelligence is a process — often accomplished through tools like software — that relates geographic information to business. It’s one thing to collect information; location intelligence turns that information into usable data that will inform a company’s decisions. Usually, this information is gathered with a specific problem in mind. This problem could be, “Why isn’t X demographic buying our products?” or “Where would our services best be marketed?” It could be just a matter of determining future marketing strategies. For example, if a company is aware of its ideal target audience, it can spend less money on reaching out to every possible consumer, and focus specifically on consumers who are most likely to invest in that company’s products or services. In the past, location intelligence was gathered through basic surveys. Thanks to the Internet, it’s now easier than ever for companies to collect data based off of consumers’ browsing habits. Now, companies can look into the products and ads to which consumers respond, and tailor their plans based on that information.
How Is Location Intelligence Collected?
Location intelligence is collected in a variety of different ways, depending on the size of the company involved and what it’s attempting to market. According to a 2014 survey by the Dresner Advisory Service, more than half of respondents across all industries indicated that location intelligence is critically important to their business planning. Therefore, companies need to take advantage of whatever means they have of collecting information. Basic demographic information can be collected through GPS satellites. You see, there are always 24 GPS satellites orbiting the Earth — right now, there are over 30, plus some spares. Even Google’s data analysts get information through these types of satellites. Sometimes, collecting information can be much simpler. It’s not unusual for companies to still send out representatives to survey their target audiences. This is often still done on college campuses through campus mapping. Hotels and restaurants, on the other hand, might try to profile their customers to best ascertain what is appealing to them. The job market for analysts is expanding in this respect, and it’s becoming more important than ever that data is accurately collected.
What Goes Into Analyzing Location Intelligence?
Analyzing location intelligence is quite a task. One thing that’s crucial is anticipating the right ratios. Google’s data experts, for example, suggest that 15% data capture, 20% data reporting, and 65% data analysis are good ratios. This way, experts will be able to calculate the most accurate information possible, taking into mind discrepancies and any possible inaccuracies.
