Report • 30.11.2016

Geomarketing opens up new opportunities for the retail sector

Real-time data will play a decisive role in the future

At this point, geomarketing can do more than just let you know where your customers are located. Digitization and fast big data processing permit access to increasingly comprehensive and differentiated information about potential markets and customers. The retail industry is also a beneficiary of this, especially when it comes to preferences of individual customers or their mobility behavior.

Microgeographic data: market analysis at the smallest spatial scale

Generally, market development can be more precise with a narrowed down database. As the first company in Germany, Nexiga has started to collect and make microgeographic data usable. The company has one of today’s most comprehensive databases providing local information.

Thomas Brutschin, CEO of Nexiga, explains, “Microgeographic information is the smallest, most comprehensive level of data available. Based on more than 22 million buildings in Germany, homes offer an enormous information density. This makes the individual home the smallest spatial unit in geomarketing. With the help of our database, we characterize the occupants and their environment in an anonymous, confidential and secure manner that complies with data protection principles. Our market data includes well over 300 features with more than 500 characteristics – for example, building characteristics, infrastructure and mobility, living situation or consumption patterns, social demographics, consumer behavior and leisure time activities, vehicle assets as well as neighborhood and location characteristics.“ This knowledge can subsequently be included in a market analysis to identify and understand the respective customer base and address it based on its preferences.

Photo: Geomarketing opens up new opportunities for the retail sector...
Source: microm

Analyzing buying behavior and product preferences

There are approximately 82 million people living in Germany. Yet the types of products they buy and the advertising medium they most respond to varies with each individual person. That’s why the microm Company specializes in the analysis of social imprints and individual value perception. “We rely on neurosciences and specifically limbic types for this analysis,“ explains Rolf Küppers, CEO of microm. “Consumers are divided into seven groups, based on how they respond to offers or store concepts. You can subsequently control category management processes and product portfolios by analyzing their first choices, buying behavior or product preferences. This allows us to see which offers are best suited for the identified consumer type and how it is best addressed.“

Filtering big data properly

Today, there are already mounds of data available and data volumes keep steadily expanding. The major challenge of big data is to filter and properly mine this data. When it comes to geomarketing analysis, it’s crucial to only use the data that is relevant to a company and to reach the defined target groups.

Generally, the data comes from statistical agencies, but it can also be obtained from Telekom, TomTom or OpenStreetMap (OSM), says Brutschin. He adds that economic organizations and association, business databases, mail order companies, consumer research or site visits can also be used. However, data obtained from social networks and smartphones can only play a role if data protection challenges have finally been solved.

As of late, microm has used movement data that is based on consumer mobility behavior and is generated in collaboration with the company’s Swiss partner Senozon. Thanks to this, the company is able to predict which target group is located at a specific location at a certain time of day and why it is there. “Typically, applications include time-sensitive digital outdoor advertising; store hours and the perfect store locations are determined according to footfall and consumer traffic,“ adds Küppers.

3D building model from Cologne with consumption focusses: Centers of...
3D building model from Cologne with consumption focusses: Centers of consumption, described through the consumption focus index, are not individual stores but densified spatial areas. These include shopping centers, specialized market centers and concepts, outlet as well as classic shopping areas.
Source: Nexiga

Utilizing customer insights for different types of advertising

One goal of geomarketing is to identify and locate potential customers. Having said that, an analysis of existing customers can also deliver concrete customer insights into target groups that have previously not been defined. Brutschin explains, “For instance, previously unknown potential buyers for cars with novel drive concepts could be identified or narrowed down and specified.“

Topics like couponing or location-based advertising with relevant shopping or discount tips to generate impulse buys are a part of geomarketing. Targeted push notification campaigns can be sent via smartphone within a distance of up to 100 meters from the POS. This brings customers directly into the stores in real-time.

Real-time data will play a decisive role in the future 

Real-time data will also become increasingly important in the future. “Having said that, the media approach and sales offers must be adaptable and flexible,“ emphasizes Küppers. “The technical development will definitely support this in the future. Digital screens or mobile ad formats already indicate an early clear trend in this direction.“

Küppers believes geomarketing will learn to handle the increasing dynamic data volumes and make them usable and useful for the retail sector. Dynamic mapping of pedestrian behavior is another first approach, according to Küppers. In addition, the rise of available data and its utilization will also increase the significance of geomarketing as a data-driven approach. A critical success factor will be in creating a suitable interface between the online and offline world.

 

Author: Melanie Günther; iXtenso

related articles:

popular articles:

Thumbnail-Photo: Zebra Technologies to acquire Reflexis Systems, Inc....
10.08.2020   #POS communications #workforce deployment

Zebra Technologies to acquire Reflexis Systems, Inc.

Acquisition helps Zebra empower every worker at the edge to execute the best next action

Zebra Technologies Corporation (NASDAQ: ZBRA), an innovator at the front line of business with solutions and partners that deliver a performance edge, today announced it intends to acquire Reflexis Systems, Inc., a ...

Thumbnail-Photo: Quantity discount on the WIMIsys PT51!
05.08.2020   #POS systems #displays

Quantity discount on the WIMIsys PT51!

From now until September 30th: 10% discount on the WIMIsys PT51 POS System when purchased together with a Swissbit TSE solution

Are you looking for TSE compliant POS solution for your customers in bakery, restaurant or retail shop? ...

Thumbnail-Photo: Behind the curtain: Inside Amazon
18.05.2020   #online trading #marketing

Behind the curtain: Inside Amazon

A Frankfurt startup helps sellers to improve their ranking on the platform

"I want to successfully promote and sell my products on Amazon" - that's the goal of many sellers. It comes as no surprise as the Seattle-based online store has evolved to become the largest e-commerce marketplace in Europe since its ...

Thumbnail-Photo: The safety barrier you need right now
02.06.2020   #customer satisfaction #security

The safety barrier you need right now

Poindus ProShield is an effective protection screen.

Safeguards like social distancing implemented in-store during staff-customer interactions are enhanced with our ProShield, an effective protection screen that provides an additional layer of protection for cashiers & customers at the point of ...

Thumbnail-Photo: COVID-19 accelerates adoption of contactless payments...
20.05.2020   #payment systems #coronavirus

COVID-19 accelerates adoption of contactless payments

Consumers around the world are switching to contactless to help with social distancing

RBR’s Global Payment Cards Data and Forecasts to 2024 reportreveals how increased contactless card issuance and acceptance combined with changes in consumer behaviour are driving growth in contactless payments. In 2018, the number of ...

Thumbnail-Photo: World’s first convenience store retrofitted with AI technology...
14.08.2020   #video surveillance #video cameras

World’s first convenience store retrofitted with AI technology

Standard Cognition to provide Circle K with autonomous checkout

Standard (“Standard Cognition”) announced that Alimentation Couche-Tard, a company that operates close to 14,500 convenience stores worldwide, including under the global brand Circle K, has selected Standard to pilot touchless, ...

Thumbnail-Photo: Automated delivery services sprang up during China’s Covid-19 lockdown...
03.06.2020   #coronavirus #delivery

Automated delivery services sprang up during China’s Covid-19 lockdown

Retail technologies at Smart Retail Expo (SRE 2020)

In response to the Covid-19 outbreak, China’s retail giants JD.com and Meituan both deployed their smart deliver robots/vehicles in heavily locked down cities, such as Wuhan and Beijing. Insiders believe automated delivery technology will be ...

Thumbnail-Photo: Bright future for Copenhagen-based Irma Store...
15.06.2020   #electronic shelf labels (ESL) #price labelling

Bright future for Copenhagen-based Irma Store

Automatic price updates with ESL

Irma Smedetoften is located in the heart of Copenhagen's Northwest Quarter. The area around the Irma store is part of an urban development project where, among other things, the local trade district will be strengthened. Irma has also recently ...

Thumbnail-Photo: Electronic shelf labels: photo store introduces new technology...
09.05.2020   #electronic shelf labels (ESL) #electric displays

Electronic shelf labels: photo store introduces new technology

Cooperation between Photografica and Delfi Technologies

Photografica is a professional photography store in the heart of Copenhagen. Here, personal counseling and service play a crucial role. To the benefit of both employees and customers, the store has installed electronic price tags.With a central ...

Thumbnail-Photo: SALTO releases the SALTO Neo Cylinder
18.08.2020   #access control #access control systems

SALTO releases the SALTO Neo Cylinder

State of the art, wireless access control technology

SALTO Systems, a leading manufacturer of electronic access control solutions, has released the SALTO Neo Cylinder – a new electronic cylinder that offers more features and better functionality than any other cylinder on the market. ...

Supplier

Poindus HQ - Taiwan
Poindus HQ - Taiwan
5F., No.59, Ln. 77, Xing-Ai Rd.,Neihu Dist.
Taipei City 114
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
CCV GmbH
CCV GmbH
Gewerbering 1
84072 Au i.d.Hallertau
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
Adasys GmbH – a Poindus Company
Adasys GmbH – a Poindus Company
Max-Planck-Straße 10
70806 Kornwestheim
Apostore GmbH
Apostore GmbH
Uferstraße 10
45881 Gelsenkirchen
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal