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Does Location Intelligence Really
        Matter… Today?
“In the mobile, always-on, highly
     internet-connected world…

  Geography will be history: Place
  will cease to be a constraint for
  messaging …place will cease to
         define a consumer”


Does 2021 Main Street Matter?
                                      2
3
4
5
71% will drive 15
minutes or less to
    try a new
  provider after
     moving



                     6
81% are willing
  to consider
   switching
   providers




                  7
Top Categories

pharmaceutical
   gasoline
    grocery
   internet
     phone


                 8
10% off - 45% will not travel; 55% will go 15 min.

          25% off - 45% will go 30 min.

50% off - 82% will go 30 min; 40% will go 60 min.

                                                 9
Unaddressed admail:
10 vs 30 minute
distance to store
increases action intent
by 50%

Addressed Admail:
10 minute distance to
store increases action
intent by 20%

                          10
How far is your consumer willing
           to travel?

                                   11
84% of consumers will drive 20
       minutes or less

                                 12
80% of consumers will drive 20
       minutes or less

                                 13
40% of consumers will drive
  more than 30 minutes

                              14
Consumers prefer ads that
   are locally relevant




   Most take action to a
 location specific message



                             15
Consumer
   behaviour
continues to be
 influenced by
   Location




                  16
17
70%
  unprepared to
   manage the
 explosion of data


       50%
struggling to create
a single view of the
     customer
                       18
80% of business data
   has an address
element incorporated


 Addressing is a key
element for consumer
   authentication


                       19
Census demographics
at address/DA

Lifestyle
segmentations at
address /postal code

Credit scoring
requires address

                       20
Trade areas a critical
marketing decision
criteria

Prospects based on
homes in trade area

Many products stay at
the address; or are
purchased by address
                         21
We find Geospatial analysis is often
          underutilized

               Limited insight on market
               dimensions

               Choose limited attributes
               for targeting

               Consider market by
               structured radius
                                           22
Structured Analysis can be limiting


  distance radius   geographic boundaries




                                            23
Unstructured areas - distanceleverages
   Unstructured analysis they will travel
                       customer behaviour
                       C lient D is ta nc e A nalys is


10 0


 90


 80


 70


 60


 50


 40


 30


 20

 10


  0

       1   2   3   4          5           6              7   8   9   1   11


                          D is ta nc e fro m S to re ( km)




60% of customers
 drive 10 minutes
                                                                              24
Optimizing your marketing program

Wasted message           Lost opportunity




                                            25
Optimizing trade areas, a GIS puzzle




                                       26
Support franchisees’
customer acquisition
targets

Focus on
neighbourhoods with
the greatest
opportunity to acquire
new customers

                         27
Traditional
radius approach
offers a
high degree of
overlap



                  28
Each store’s trade
area defined by
the distribution of
their customers




The Yonge Street effect

                          29
Customer profiling identified distinguishing
      demographic characteristics

Hhld $ 0-19K      Hhld $ 20-79K    Hhld $ 80K+
Age 25-34         Age 35-49        Age 50-64
Dwelling Rented   Dwelling Mixed   Dwelling Owned


 A                B                C


                                                    30
Acquisition model
assigns unique score
to each postal code




                       31
32
Original Trade   New Customized
    Areas          Trade Areas




                                  33
Leverage GIS to Optimize customer
       acquisition in 3 steps




                                    34
Is there a role for trade-area location
analysis and e-commerce providers?




                                          35
High Penetration   Low Penetration
     Sales              Sales




                                     36
Is there a role for trade area location
 intelligence and mobile marketing?




                                          37
The customer sees a custom map to the nearest
                         retail location




The direct marketing voice, March 18 2011
                                                         38
Respondent’s information is sent automatically by
                      e-mail to agent




The direct marketing voice, March 18 2011
                                                         39
Location intelligence:
 ShopAlerts by AT&T

  Location-based opt-in
 platform: designed to use
    mobile marketing and
geofences to drive consumers
     into retail locations

  For consumers: receive
offers, and coupons based on
   their specific geographic
           location
                               40
Is there a role for trade area location
    intelligence and social media?




                                          41
Social ??
 Unstructured
   Demo &
Psychographics
  Structured

 Physical and
 Behavioural
  Structured
                 42
Mapping search and social activity to
                geography….a start




                                                   esri case study
Search events, unfiltered for single day
Highlights clusters, hotspots and spatial errors
                                                                     43
Density and sentiment mapping to
 create hot-spots by geography




                             esri case study


                                               44
Location
 Intelligence
as an essential
  tool to drive
       ROI




                  45
Does Location Intelligence Really Matter, Today?

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Does Location Intelligence Really Matter, Today?

Notes de l'éditeur

  1. Source: JWire Mobile Insights Audience Report Q4 2011
  2. The first step: Where is your target audience located or what is your trade area? Is it within a specific city, CMA, or maybe a radius around your store.
  3. Each locations trade area is different and a standard 10 km radius applied to all locations does not represent each locations true customer base Some store location trade areas overlap due to the close proximity of store locations; potential customers in the overlapping areas may belong to one postal route but are likely to frequent different locations. Thus printing one location on a flyer is insufficient and results in imbalanced Unaddressed Admail allocation Targeting is based on only 3 demographic variables weighted equally with little understanding of key demographic drivers or their multivariate interactions in identifying potential customers
  4. Define a trade area for each store by associating all customer postal codes to the postal route and calculating distance from the routes to each store; graphically represent customer percentiles ranked by distance to determine boundary limits Construct individual store trade areas by geocoding all store locations and creating a buffer around each store with the respective store’s 85 th percentile distance ranking applied to historical customer data (boundary limit identified in previous step)
  5. Integrate CPC proprietary geographic data with Statistics Canada demographic data to create an aggregated data set at the postal code level Weight each route on household density and customer penetration combined to ensure true representation of demographic characteristics Compare demographic characteristics of the Customer Base to the Trade Area to create an Index, and identify over and under indexed demographic variables among the many demographic variables in the data set
  6. Deciling the model scores show postal codes in the lowest model decile have very low penetration of customers, while postal codes in the top decile have more than 2 times the penetration of customers than average A thematic map is produced to provide a visual representation of the neighborhoods with the greatest opportunity to identify potential customers.
  7. The data utilized to accomplish this process integrates customer base information associated with individual stores, CPC proprietary data, as well as the complete Statistics Canada 2006 Census data (the most recent available). Leveraging this comprehensive modeling data set enables CPC to differentiate between areas of greatest and lowest opportunity.
  8. Many Social Media apps are built with the social geography in mind. Commscore says that “Local” is at the forefront of the intersection of social and mobile trends. By definition, local equals place. Local is geographic and is the means to connect anything, anywhere. SoLoMo features are readily embraced by consumers but are marketers keeping up with the innovation? How quickly are they adopting geo-aware and SoLoMo features? Local – or location - exposes preferences, relationships and connections. Trends that can be used to understand loyalty and affinity. We can mine and quantify these interactions and connections to understand more about consumers. What are they looking for when they search, how much demand exists, where do we have supply and demand imbalance and hence opportunity and gaps? What else do people want? What are they longing for in an area, a market or community? The very things we need to do as marketers.