The distance between customer and product can be crucial
While CRM analytics focus on the customer and micro analytics on spatial data transfer, location analytics focus on the customers in the space. Enhancing customer addresses with coordinates and their representation as points on a map are just the beginning. The operative use of specific spatial customer information, which only arise in the context of your company, rather is the goal here.
Geo-referencing and localisation
Geo-localisation means geo-coding customer addresses first. Each address is assigned to a unique coordinate and geo-referencing is carried out. The coordinate allows localisation in space as a point.
With the help of geo-referencing in turn it is possible to allocate customers to microcells, road sections, and quarters, i.e. spatial market structures. Municipalities and postal codes are here well known in general and often used. However, these are not recommended from the analytical point of view, as their structure is quite inhomogeneous and spatially often much too large.
Another exciting field of location Analytics is the enhancement of customer addresses with distance information (routing or beeline). Here, numerous applications are possible, such as:
- Determining the nearest branch
- Determining the distance and travel time to the nearest branch
- Determining the distance and travel time to the nearest competitor
- Distance to nearest pedestrian zone
In addition to the enhancement with company-specific distance information, it is also possible to enhance the CRM stock with general micro-geographic information such as types of buildings, infrastructural characteristics, and product affinities.