Wouldn’t it be amazing to have an extensive knowledge of your company’s customer base, shopping habits, and future spending desires?
Wouldn’t it be game-changing to utilize this data to create targeted marketing strategies or identify the most profitable location for a new company extension?
Thanks to the rapid growth of big data collection these dreams are starting to become realities for a number of tech savvy businesses. Using demographic data and geographic information systems (GIS), business owners are beginning to drill down and discover exactly what types of customers are driven to their products and how they can take advantage of this information to rocket their unheard of business into a marketing powerhouse.
What is GIS?
GIS is a sophisticated mapping software that enables users to link information, such as demographic data, to geographic locations. Furthermore, it allows users to visualize data in map form, which can really help in making connections that would have otherwise been missed. GIS software also houses a statistical analysis function so users can draw comparisons between data sets and different ‘what if’ scenarios.
Adopting a GIS platform within a company provides a new look at information that can completely reform marketing strategy. Marketing professionals that utilize the software are generally able to uncover previously underestimated data about potential customers and use it to their company’s advantage.
Are you Targeting the Right People?
Perhaps the most intuitive and useful way in which companies can make use of GIS is by analyzing the demographic data of the area in which they are working. Demographic data can tell marketers how old their customer base is, what their income level is like, how frequently they shop, and what they tend to purchase when they do.
For instance, as more of the population ages and has greater medicinal needs, pharmacies are trying to determine where the older population (and greatest customer base) resides. One way in which they are doing this is through GIS analysis of the nation’s demographics. Researchers from The University of Cincinnati’s Health Informatics program found that although in general this information was lacking, there was a strong possibility of the data becoming more widespread and highly utilized for the benefit of all.
It’s not who you Are, it’s Where you Are
Another way in which companies are using GIS and demographic data is to determine where new stores are likely to have the most success. They can use the mapping functions to pinpoint all current locations and identify large gaps in service. Furthermore, they can use demographic data from other stores to determine if the proposed new location is easily accessible to the greatest customer demographic.
One company that has made significant headway with this idea is Wendy’s. GIS software helps the company save money by informing their real estate purchases and marketing strategies. For instance, they look for neighborhoods with a higher proportion of family units than empty nesters. Wayne Gearey, senior vice president, estimates that through the use of GIS mapping products Wendy’s has saved over $750,000 in the first two years of use.
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Demographic data is taking the marketing profession by storm. Questions that marketers have always struggled to answer are becoming clearer and enabling them to reach specific audiences and target ads those most likely to purchase products. More and more companies are taking advantage of this information in order to boost their business and save money at the same time.
