Location Intelligence – the business about WHERE
The idea of Location Intelligence (LI) has given another aspect to each business. It is challenging to track down an organization that isn't utilizing Location Intelligence to serve its clients better. Right from a simple location-based retargeting ad to resolving complex problems, application of different approaches for location intelligence optimization has become obvious in each field (various industries, customer-centric approach, digitization etc.)
Make full use of your data in combination with open-source data!
Location intelligence is achieved via combination of client’s data together with open-source geospatial data to build predictive model for various business analyses. Its utility is not exclusive just to the ride-hailing services, the depth and breadth of the concept can be applied to several other industries and use cases too.
Main benefits of the LI:
Case study: Physical Touchpoints’ Optimization Approach
Nowadays, digitization and business transformation change the original perception of business – our clients and their customers reduce the need to attend touchpoints physically. When it comes to the definition of “physical touchpoints”, we can understand it as any way consumers can interact with a business organization person-to-person. But since there is not so much interest, why not start optimizing these physical places, right?
Location Intelligence with application of geospatial data analysis can help here!
Geospatial data analysis enhances understanding, insight and decision-making. By adding layers of geographic data to a smart map or dashboard, organizations can use intelligence tools to identify where number of customers is concentrated, their distribution, profitability of each point, competitors’ physical touchpoints etc. As part of a digital transformation, many organizations are relying on geographic information system (GIS) technology to create location intelligence.
After bringing spatial data into analysis, we have combined internal and external data to create useful and meaningful monitoring tool:
This monitoring tool can be developed either as an on-going tool supporting your business, or as a one-off analysis for your strategic decision-making process.
Moreover, this approach enables to use tool-agnostic approach, i.e., we project clients’ needs to the solution in terms of “the best fit” BI tool.
For this case study, we have used open-source data about longitudes and latitudes of dedicated branches of 3 anonymized banks – we have decided to consider only branches with the highest traffic density.
Imagine that by this data you can consider not only your own physical touchpoints, but competitors are also considered when it comes to a decision about branch network optimization.
In terms of competitive analysis, we can complement our solution by Deloitte FinBench that helps measure financial health by sets of financial indicators while benchmarked to its peers within a selected group .
To identify the consumption of customers and non-customers of branches in a certain area, we help by defining polygons around the located branches to show the reach at a distance chosen by the client. The overlap that may arise will help us identify the density of branches in the context of the area and the possible cannibalism of customers and non-customers of branches of the same bank.
One way of defining a polygon can be a simple buffer, a distance in the form of a circle around the points or an advanced geospatial analysis called isochrones.
To support this insight-driven decision process, other important KPIs were added to the monitoring tool so our clients can dive into details for number of customers, non-customers, financials (profitability, cost, revenue) etc.
As a result, the client can use this monitoring tool to decide about various cases for optimization, such as branch cancellation, merging of 2 banks, relocation of a branch etc..
As a result, our clients can make data-driven decisions about their business by adding geospatial data.
Even if your business may already have a robust network of branches, stores or other customer touchpoints, location intelligence may come in handy for its optimization. Sometimes hard decisions like reducing the number of branches must be made, especially if there have been significant changes on the market or if you are planning on merging multiple branch networks.
With this solution, the client can gain:
- Potential for new revenues in the form of new opportunities, customers, etc.
- Cost savings and higher efficiency in business optimization.
- A clear overview of the business thanks to the effective use of geographical data and/or a real-time view.
- Acceleration of data-driven decisions or digital transformation using the combination of client data and geodata.
Through Branch optimization, you'll be able to analyze your current branch network based on the locations of your branches, customers, competitors, or any other data. This helps you find out if the individual branches perform up to their potential established on location-based insights. With the provided analytics, it's much easier for you to decide what to do, whether to close the branch, merging some physical points or adjust the business hours.
