Geomarketing is a marketing technique that takes into account the geographical context to analyze the behavior of economic individuals.
Its purpose is to provide greater knowledge of customers and prospects. For this, it involves geomarketing studies consisting of analyzing the behavioral and socio-demographic profile of the population living in a given geographical area. For companies, it is a prerequisite for implementing any effective marketing action.
Geomarketing analysis provides you with more data and factual elements to understand your commercial territories and to make the right decisions. In this article, we dig deeper into the applications and tools of geomarketing.
Definition of geomarketing
Geomarketing includes all marketing actions that use both geographic or cartographic, modeled socio-demographic and socio-behavioural data. It is a distinct concept and much broader than localized marketing which is based on cartography and a Geographic Information System (GIS). Its use promotes, among other things:
- carrying out location studies;
- optimization of the distribution of leaflets;
- optimizing canvassing actions;
- determination of commercial potential;
- and making good merchandising decisions.
In addition to data external to the company, geomarketing also relies on internal data, specific to it. We still do not realize it, but 80% of the data – the establishments on the territory, the customer file – have a geographical dimension. A combination of these different sources of information and their cartographic representation help you to better analyze your field of operation to better exploit it for commercial purposes.
The direct applications of geomarketing
In its concrete application, geomarketing consists initially of approving a large amount of data relating to the activities of the company in a given area. This consists in a second step in giving a spatial dimension, significant and enlightening to these data thanks to cartographic representations.
In franchising, geomarketing is a valuable tool that facilitates the study of the flow of consumption and the behavior of economic individuals in a given area. Closely linked to marketing, it is very useful for carrying out various business activities thanks to the exploitation of the data collected, whether it be:
- geolocation,
- the CRM customer base,
- the purchase journey,
- stock status.
Its applications extend to a very wide field.
To take decisions
Geomarketing helps you, through simulations, to define your franchise area with precision. If its usefulness is crucial when preparing to launch a commercial activity, it is also a valuable aid to decision-makers to make intelligent and informed decisions throughout the life of the company.
In the event of a decline in turnover, the analysis of geomarketing study reports will be used to adapt offers to customers in your target area and to improve your communication campaigns. They will also be used to perfect your merchandising and update your sales strategy so that it evolves with your customer base.
For a company in the development phase, the expansion strategy will have to take into account the segmentation of sales portfolios to optimize them according to the profile of each client. Thanks to geomarketing, all the parameters are concentrated in the same place and are considered in decision-making.
Find the right locations
Franchisees use geomarketing primarily to determine the ideal business location to set up shop. By viewing and analyzing the data collected, it becomes easier to identify the geographical areas whose structure corresponds to the profile of the areas where the stores with the best turnover are located.
The areas thus determined will therefore be targeted as locations for the points of sale. The analysis therefore leads to reviewing your positioning to give up an area or to expand your areas of presence to increase your commercial performance. It will also have to consider cannibalization to avoid poor management of catchment areas.
Adapt products and merchandising to local products
In addition to determining the optimum sites for setting up stores, geomarketing is also used to determine the products that are most suitable for a geographical space to meet the needs of the inhabitants. With the right location and the right products, it will then be used to determine the commercial actions adapted to the customers of the studied area.
Do the prospecting
Geomarketing is a powerful tool used to improve prospecting. Understanding the behavior of the individuals it favors is ideal for analyzing the geographical distribution of high-potential customers and for locating potential customer deposits. The results of these studies are then used to prospect for the targets most likely to respond favorably to the company's various offers.
Implement effective marketing actions
Geomarketing puts all the information at your disposal to establish the profile of customers and prospects present in your catchment area. It thus offers the means to determine with precision the most suitable means of communication to achieve the marketing objectives of the company.
You will be able to determine the types of advertising campaigns to conduct (e-mail marketing, Pop-up, advertising on social networks, by SMS, etc.) to address your message to customers depending on where they live. You will also manage to optimize your advertising investments by exploiting your knowledge of the particularities of local populations.
The advertising message will be adapted both in terms of its form and its content to correspond to its target. This is frequently used in direct marketing to carry out BtoB or BtoC prospecting.
Organize the sales force
Geomarketing is not just for managers. Its application involves taking into account the potential of each targeted area, in terms of:
- penetration rate,
- volumes of customers and prospects,
- and target movement behaviors.
The purpose of this study is to develop sales plans to organize visits to customers and prospects. On the web, its application includes:
- plans,
- maps and dashboards accessible through a computer.
It makes it easier for reps to organize productive rounds while reducing travel costs and fatigue.
geomarketing tools
Geomarketing uses several tools to collect and gather the data necessary for the various studies that will lead to the achievement of the company's commercial objectives. Among these tools we have:
Databases
Databases in geomarketing are most often lists of customers and prospects grouped together according to certain predefined criteria. This may be, for example, socio-demographic or geographic distribution. Databases contain different types of data:
Sociodemographic data
- Families,
- age and sex of the inhabitants,
- family composition, etc.
Geographic data
- public transport,
- Main highways,
- area size, etc.
Contextual data
- Resident mobility,
- traffic etc
Economic data
- Economic situation,
- wealth index, etc.
Behavioral data
- buying habits,
- most used media,
- consumption potential of a given product, etc.
Competitive data
Geolocation and influence of competitors in the area.
Address files
Geographical and statistical information comes mostly from Ign, Insee and field surveys. The modeling is then carried out by cartographers, geographers and other competent experts according to the needs of the company.
These databases can be used for commercial purposes by maintaining the relationship with customers. For a study perspective, the data collected is used for a geographical analysis in order to target the white areas. They are also used for:
- test a product,
- evaluate direct communication,
- or manage and control sales promotion.
GIS
Geographic information or spatial analysis systems are computer tools used to represent and analyze referenced geographic data. They consist of two main elements which are:
- geographic databases (BDG);
- data entry, analysis, management and representation software.
Three other components are added to the list to make data processing possible:
- the users ;
- the materials
- processing and analysis software.
Software used for geomarketing
These are programs specially designed to facilitate the development of an implementation strategy. The principle consists in analyzing geographical data as well as market trends which vary according to location.
These IT solutions in SaaS mode facilitate the collection of precise data and the determination of market coverage rates. They have some features that link today's geographic data to traditional marketing:
- The implementation of analyzes relating to the catchment area, the geographical area and consumer behavior.
- The presentation with maps through a customizable interface. The software also presents a palette of tools to customize the presentation.
- Sharing of reports through a broadcast mode or an integrated data sharing option to strengthen collaboration between actors at different levels.
In summary
Geomarketing is a strategic marketing tool that is generally based on cartography and a GIS to provide you with perfect knowledge of your assets. It makes it easier for you:
- decision-making at the time of your establishment,
- but also throughout the life of your business.
Its application helps you to know your customers and prospects with precision and to save time by communicating effectively. You will also be able to choose the optimal location for your business, assess the competition and optimize your marketing strategy to control your costs.
More and more companies are using this solution; it serves them to the detriment of those who do not.
