Location Intelligence is one of the most recent technological advancements in the data and intelligence fields. It is a technique for extracting insights from location data to address various queries. Whether it is people migrating, objects being monitored, or business operations, location is necessary for deciding commercial success or failure. Location-based intelligence finds applications for every business, from simple location-based advertising to dealing with difficult situations. The approach’s complexity and scope can be extended to various sectors and use cases, making Location Intelligence relevant beyond ride-hailing services.
As per the report, the Location Intelligence market size value was approximately USD 17 billion, which is anticipated to surge by 15% between 2024 and 2032. The development of Location Intelligence technology is accelerating. The growing number of portable navigation devices, web-mapping services, and smartphone applications contributes greatly to the advancement of Location Intelligence technology.
In this guide, we will introduce location intelligence so that you can better understand what the phrase means.
What is Location Intelligence?
Location Intelligence is the latest achievement in data and insight technology. Location Intelligence refers to the technique of extracting strategic knowledge from geographical data. It includes much more than simply plotting data points on a map. These evaluations provide better insight into the market’s existing situation, potential development areas, and success impediments. As per the reports, Location-based Intelligence technology analyses data and generates detailed reports.
Most commercial businesses consider geospatial data essential while working on difficult projects and making critical decisions. In regard of this, having access to insights and forecasts generated by Location Intelligence technologies is critical, especially for decision-makers and strategists. A location-based intelligence platform generates results using the following methods
- Analysis
- Comparison
- Forecast
- Enhancement
Location Intelligence enables “mapping” capabilities that conventional analytical tools lack. Thus, Location Intelligence tools highlight trends and business opportunities.
What is the Difference Between Location Intelligence vs. Business Intelligence?
Location Intelligence and Business Intelligence differ in the data type used and the derived insights’ applications. Business Intelligence is the integration and analysis of various types of data. However, the information obtained from this research is employed for a particular purpose: Making a decision that enhances a company’s operations.
In contrast, location intelligence uses a specific type of data called geospatial data. This includes details about points of attraction, developing footprints, footfall patterns, weather systems, and road traffic. However, it is utilized for more than only commercial issue-solving and process enhancement; it has various applications.
What are Location Intelligence Tools?
Location Intelligence software is designed to help businesses collect and consolidate large amounts of data, analyze and filter it, and use it to make business and operational choices. Location Intelligence software is a business intelligence tool used by data scientists and analyses to identify trends on maps and optimize various business prospects. Data scientists can utilize location intelligence software to evaluate consumer behavior in a certain area and determine whether a shop should open a new branch there.
Which Industries Use Location Intelligence?
Businesses can use location intelligence, but they are not the only ones that do. Here is a quick rundown of sectors that use location intelligence and why:
1. Retailer Outlet
Retailers can use location-based intelligence to identify links between stores, products, and consumer categories based on various factors driving sales success. Retail managers can arrange warehouse supplies and monitor inventories to ensure that every location is properly stocked.
Analyzing sales of certain products by location or stores improves stock supply and retail management productivity and efficiency, and it can aid in developing highly focused and effective marketing strategies. When paired with other facts, such as demographic trends and client purchasing histories, location-based intelligence can be used to tailor marketing efforts to the tastes of local customers.
2. Restaurants(QSR)
A restaurant’s location influences its popularity and growth. The Internet food delivery market is expected to reach $200 billion by 2025. Quick-service restaurant (QSR) marketers intend to use more location data during the next two years. By leveraging Location Intelligence data, they can attract new customers and improve customer experiences.
Customer experience remains a primary objective for restaurant owners and food delivery businesses. Location Intelligence technologies can assist them with shorter delivery times, route optimization, and first-and last-mile delivery management. Restaurants and cloud kitchens also provide discounts to consumers based on location and other characteristics like the day of the week, festivals, weather, etc.
3. Transportation and Logistics
Companies prefer to use Location Intelligence data to optimize the shortest routes, warehouse processing, and stock-flow management. GIS, when integrated with LI, assists transportation businesses in increasing fleet productivity, vehicle monitoring, lowering fuel consumption, reducing idle time, and optimizing vehicles. Organizations can increase the number of timely deliveries and enhance supply chain management. Location intelligence analytics can help analyze accidents and traffic trends.
4. Insurance
With Location Intelligence data, insurance companies can increase fraud detection, regulate and mitigate risks, expedite claim processing, and expand their customer base.
They can determine high-risk or low-risk situations using their consumers’ geographical data. The insurer will receive more data from detailed Location Intelligence data, such as region-specific auto theft crime rates and extreme weather patterns in the state or city. Businesses can estimate the locations with the highest exposure by combining historical weather patterns with claims data. Better policies, more intelligent marketing plans, and enhanced pricing models can be created with Location Intelligence-based analytics and insights.
5. Healthcare
When integrated with Business Intelligence data, Location Intelligence collects data from several operational systems and provides reports that assist individual medical institutions in understanding the operating environment better.
Location Intelligence software helps reduce billing errors and denied claims by connecting charges to outbound requests and patient flow rates across institutions. Healthcare facilities can monitor their quality and enhance patient safety to prevent any unsafe or substandard procedures.
Healthcare personnel can use the data to identify areas that require more training to enhance performance. Location analytics can also help with pharmaceutical supply chain management and distribution.
6. Real Estate
Identifying the best places for commercial development is crucial. Among various other considerations, it is necessary for the client to get the ideal site location with the target market.
For instance,
- Where public transport lines connect to your target market and preferred location.
- Can individuals get there on time and without undue effort?
- It makes no difference if you sell cars or hamburgers; you want your products to be easily available to your clients.
- Are there potential clients in close proximity?
- Where are these potential customers in relation to other shopping centers that sell similar products?
7. Financial
Location data is becoming a critical component of channel optimization in the banking industry. Banks and credit unions need to reconsider the value of location and reinvent their branch networks to stay competitive. Additionally, by using these insights to generate more intelligent opportunity-based sales targets specific to each brand’s facility features and market dynamics, business decisions that are less arbitrary and less out of step with each location’s actual potential can be made.
8. Banking
Banks can use Location Intelligence data to grow their banking network and make well-informed choices regarding current and upcoming investments and acquisitions. Additionally, it facilitates communication between banks and their clients, enabling them to send critical information, such as the location of the closest branch of an ATM. This promotes client engagement and sustains a favorable situation.
Banks use consumer location data to better target online ads, provide smooth and efficient account application and financing operations, and handle client location data. They can even do consumer segmentation and analysis based on location to create marketing and sales efforts that are more effective.
9. Telecommunications
All aspects of the telecom industry, including network development, sales, and marketing, can benefit from using location data.
Location Intelligence and data enrichment solutions are important for increasing vital capacity and providing the best possible service. Cell towers, small cells, and Wi-Fi sites can now be found with unprecedented precision due to them. This is crucial given the accuracy requirements of 5G wavelength frequencies.
Leaders in marketing and executive positions can also use location intelligence knowledge to target potential client addresses for services that qualify. Engineers can use it to monitor and analyze traffic spatially, pinpointing areas of over-or underutilization of network resources.
10. Hospitality
Hotels can use location analytics to monitor foot traffic from new and returning customers and find out how many people use the fitness center regularly and how much time they spend in the lobby bar and lounge. By recognizing the habits of their guests and meeting their requirements and preferences while they are staying at the hotel, location intelligence technologies can assist hotel managers in providing better customer service.
By providing discounts and exclusive deals, hospitality and travel companies can enhance their marketing approach and recognize their most devoted clientele. They can determine when visitors are most active and modify their personnel schedules accordingly. Additionally, hotels can compare daily, weekly, and monthly visitor numbers to those of competitor hotel chains using Location Intelligence tools.
11. Government
Location Intelligence data can help the public and government sectors better serve their citizen requirements and foster greater community involvement. Police departments can better allocate resources to enhance public safety by using Location Intelligence data in the public sector. Using geographic data to pinpoint inappropriate spending, authorities reject fraud, waste, and misappropriation of public funds.
In the event of a disaster or societal benefit, government agencies can likewise employ Location Intelligence tools to visualize and comprehend the situation and make defensible decisions.
Key Applications of Location Intelligence
Location-aware enterprises and organizations come in a wide variety. We will now examine a wide variety of particular location intelligence applications.
Mapping
One of the main uses of location intelligence is geographical data mapping. It enables the visualization of possible connections between geospatial data sets and properties. This can be a very challenging task without figuring out where the data corresponds to in the real world.
Smart Cities and Urban Planning
The government uses Location Intelligence exclusively while smart city planning eg. How to use government land, and other aspects of urban life. Local governments can use geographic data to better understand their constituent’s whereabouts, needs, and behaviors by utilizing artificial Intelligence and location-based services. This involves making important facilities more accessible, easing traffic, controlling energy and garbage collection more effectively, and more effectively allocating security forces to protect the public.
Big data insights will assist in shaping policies that will benefit local communities and residents as more cities start to use smart city planning. Based on consumer behavior patterns, location intelligence can assist urban planners in identifying and prioritizing priorities. Smart cities can enhance the quality of life for city localities and visitors by addressing these issues with facts rather than conjecture.
Supply Chain Optimization
The supply chain optimization and readiness for peak periods depend on one’s ability to negotiate the intricate global supply chain. This means your data is the most valuable asset for surviving the holidays and succeeding.
The goal of geospatial data intelligence is effectively traversing the vast network of carriers, services, and warehousing sites. Anywhere and at any moment, disruptions can happen. However, if your geospatial data is prepared, you can make it hassle-free and win the client’s satisfaction.
Real Estate and Property Management
Real estate firms must choose which lands are worth investing in when a government designates land for residential or commercial usage. To achieve this, they must consider geographic elements such as the property’s physical characteristics, the surrounding environment, the property’s accessibility, and the traffic volume of the neighborhood. All of these factors impact expenses related to the property and the potential side of the property after development.
These elements can also impact the property’s marketing strategy. While a residential plot might be represented as being near necessary facilities, a commercial plot near foot traffic and other centers of interest might be advertised for its accessibility to clients. On the other hand, a residential site far from the traffic could be advertised as a peaceful place from the city. Therefore, to determine which property
Agriculture and Precision Farming
To boost productivity and profitability, Location analytics helps farmers and other business experts enhance their operations and make data-driven decisions. Location intelligence applications include supply chain optimization, pest and disease control, irrigation and water management, crop monitoring, and yield protection.
In addition to monitoring individual crops, location intelligence is being used to predict crops on a regional or wide scale. Location intelligence is used to schedule irrigations better and use less water by obtaining information on soil moisture levels, weather patterns, and crop water requirements. By gathering data on soil moisture levels, slopes, and other variables, farmers can identify areas that are vulnerable to erosion or floods and take proactive measures to safeguard their crops.
Financial Investment
Organizations such as investment banks and private equity firms can use business intelligence and location analytics to manage their assets better. They search for signs that a company or real estate investment can yield profits with lesser risks. To assess and predict performance, they should seek out some of the same geospatial data and trends that real estate developers and other companies might use.
For instance, how easily accessible are land parcels or retail locations, and how often do they become busy? Do the demographics of the local customers align with the intended market for a home or business? What is the number of verified visits a location receives? What additional attractions exist in the area, and how might they affect traffic or operations at the location? Long before a firm releases its official results, this type of business location intelligence can provide hints about its financial performance. Where can I find geographic information for location intelligence?
Telecommunications Network Planning
The design of utility infrastructure for inhabited regions is another task for city planners. Once more, they must employ location intelligence to consider variables like the terrain’s suitability for system construction and potential man-made or natural barriers. To construct crucial hubs where they can get the greatest coverage with the least gear, they must also consider which places are often the busiest.
When constructing their networks, telecom companies must consider comparable factors when utilizing location intelligence. They can also use it to calculate the cost of adding infrastructure for individuals or companies based on traffic volume. Based on how busy their websites get, people and businesses alike can use location data to determine how to optimize their network availability and bandwidth.
Consumer Insights
A company can use location-based market information to learn more about how its chosen locations will perform. It can examine data specific to the area around a store to determine whether goods or brands are popular in surrounding businesses. It might then decide to carry certain brands or products, highlight them in advertisements or other marketing collateral, or even reorganize a store to make the items people want most easily available.
A company can also consider the websites customers usually visit before or after visiting one of its stores. This can draw attention to related companies that could be contacted about joint promotions. It might also identify competitor stores where clients will locate certain goods that a company’s store does not carry.
Environmental Monitoring
An essential component of geolocation-based environment monitoring is artificial intelligence. We can use AI algorithms to examine vast amounts of data gathered from numerous sources, including satellites, weather stations, and the Internet of Things (IoT) devices. When this data is evaluated using AI, it helps identify possible hazards and offers insightful information about the ecosystem’s health. AI is revolutionizing geo-location-based environmental monitoring in various ways.
The Importance of Location Intelligence for Business
Location intelligence, also known as geospatial data, is becoming increasingly relevant in various businesses because of its potential to deliver useful insights. The importance of location intelligence data and how they help make better data-driven future decisions is mentioned below.
Enhanced Targeting
Location Intelligence enables organizations to focus on their marketing campaigns precisely. By examining location data, businesses can pinpoint particular locations or areas where their target audience is concentrated. This knowledge allows them to customize their marketing efforts, product offerings, and promotional methods to maximize their impact and target the appropriate customers at the right time.
Improved Decision-Making
Location intelligence delivers useful data for making precise business decisions. Businesses can acquire a thorough picture of market trends, customer behavior, and demand patterns by combining location data with other relevant information such as demographics, socioeconomic variables, and competitor locations. This insight enables businesses to make data-driven decisions about expansion plans, site selection, resource allocation, etc.
Optimal Resource allocation
Location Intelligence data enables businesses to optimize their resource allocation strategies. Based on this information, companies can identify regions with high client density and distribute resources, such as sales reps, distribution hubs, or service outlets. This guarantees that resources are deployed effectively, resulting in cost savings, increased operational efficiency, and enhanced customer experience.
Competitive Advantage
Location Intelligence can provide a competitive advantage by revealing hidden possibilities or market gaps. Businesses can use location data to identify underdeveloped locations, market gaps, and areas with strong growth potential. This data enables businesses to strategically position themselves by entering new markets, opening new branches, or providing specialized products or services, giving them an advantage over competitors.
Enhanced Customer Experience
Location Intelligence can enhance the experience by providing insights into customers’ behavior and preferences. You can learn about your customer’s backgrounds, hobbies, and how they connect with your firm. This information can be used to develop personalized experiences based on the requirements and tastes of clients.
Business Strategy Analysis
Location-based intelligence data helps firms identify strategic planning opportunities. It can facilitate communication and collaboration at all stages of production, including service or product delivery. Using location intelligence, companies can maximize investment returns by simplifying network and sales investments. This leads to more realistic expected returns and prices.
Risk Reduction
Location intelligence data assists businesses in reducing risk by recognizing potential dangers or weaknesses connected with certain places. By examining geographic data, companies can examine issues such as natural disasters, crime rates, and infrastructural restrictions that influence their operations or asset safety. With this knowledge, firms can proactively reduce risks, establish contingency plans, and assure company continuity.
What are the Factors to Consider While Selecting a Location Intelligence Platform?
There are various criteria for choosing a location intelligence platform that helps make successful data-driven decisions.
1. Comprehensiveness
The platform should include various datasets, allowing users to account for all relevant indicators in their location analysis. In addition to geospatial data and points of interest, the platform should offer foot traffic analytics, demographic datasets, local zoning and development information, and other features.
2. Accuracy and Precision
The data must be precise, detailed, and up-to-date. Making business and development based on old or imprecise location intelligence can cost firms hundreds, if not millions, of dollars.
3. Actionability
Given the massive quantity of data available today, business owners and other professionals require easy, well-built solutions to process all necessary information and give users actionable insights while not overwhelming them.
4. Approach to Privacy
Furthermore, as data collection techniques become more advanced, the problem of providing customers with granular insights while preserving individuals’ privacy becomes increasingly difficult. When selecting a location intelligence supplier, look for one passionately committed to accuracy and privacy.
