Geospatial data-driven success – research insights from Boston Consulting Group

By July 6, 2021Blog, Google Maps
bcg-report

Learn how combining mapping solutions, real-time geospatial data, and your internal company data can improve your customer experiences and business processes. Boston Consulting Group (BCG) surveyed more than 500 executives and conducted interviews with 40 companies around the world focusing on the following sectors:

finance

Financial
services

retail

Retail
& e-commerce

delivery

Logistics
& delivery

real-estate-icon

Real
estate

travel-icon

Travel
& tourism

What is location intelligence?

Businesses unlock location intelligence by combining third-party mapping and geospatial data with their internal expertise – knowledge of customers and processes.

Google commissioned BCG to conduct this study and learn how location intelligence is changing the way businesses operate. We explore the results in this article. Read on if you want to find out what are the benefits of using location intelligence.

The research revealed mapping data and business expertise are impacting global business trends:

  • Geomarketing: 78% of retail and e-commerce leaders use geomarketing and targeted communications
  • Customer experience: over 59% of real estate and travel/tourism leaders enhance CX based on location
  • Workforce optimization: 41% of financial services leaders optimize workforce coverage by location
  • Delivery and logistics: 74% of logistics and delivery leaders use location intelligence to optimize routes
  • Detecting fraud: 41% of financial services leaders use location intelligence for authentication and function optimization

Companies that achieve most success with location intelligence share four common characteristics:

Mapping and geospatial data aligned with core business
Location intelligence used for a wide variety of processes across the business
Value of location intelligence initiatives is effectively measured

Maturity of location intelligence capabilities

What are the challenges?

  • Meeting customers’ growing expectations for highly relevant, location-aware experiences
  • Increasingly complex delivery and supply chains. Managing operations in a way that creates value for both businesses and customers
  • Providing products and services based on customer locations. Understanding spending patterns to identify spending potential and tailor products/services
  • Disruption from smaller players. Staying ahead of competitors by improving on key metrics like NPS, sales, and delivery times
  • In-house capabilities. Understanding and maintaining in-house skills to take advantage of mapping data

What are the benefits?

1. Grow sales and unlock new revenue

Location intelligence can help you know your customers and how to communicate with them more effectively, increasing ROI and boosting sales through geomarketing.

finance

Financial
services

12-18% higher customer retention for financial services providers who segment customers by location

retail

Retail
& e-commerce

14-20% more time spent using retail and e-commerce apps that understand a customer’s location

delivery

Logistics
& delivery

8-13% increased customer retention rate for logistics companies who tailor products and services using location intelligence

real-estate-icon

Real
estate

8-11% increased revenue for real estate businesses who tailor products and services using location intelligence

travel-icon

Travel
& tourism

6-16% more online traffic for tourism and travel companies who measure marketing effectiveness by location

2. Improve customer experience

Location intelligence helps you keep customers satisfied and enhance NPS by offering more efficient services, from websites and apps to delivery.

finance

Financial
services

8-15% higher NPS by tailoring financial products and services to a customer’s location

retail

Retail
& e-commerce

10-15% higher customer satisfaction for retailers who measure the effectiveness of their marketing by location

delivery

Logistics
& delivery

6-11% higher customer satisfaction using real-time vehicle and cargo tracking

real-estate-icon

Real
estate

6-10% increased time spent on real estate websites that measure marketing effectiveness by location

travel-icon

Travel
& tourism

5-8% higher NPS by tailoring travel products and services to a customer’s location

3. Streamline operations

Optimize your workforce and supply chain, expand your company footprint, and improve customer services.

finance

Financial
services

7-12% revenue growth in financial services by using geospatial data to optimize location and market planning

retail

Retail
& e-commerce

7-12% reduction in support calls by using location intelligence to provide information about a service

delivery

Logistics
& delivery

5-8% revenue growth for logistics businesses who optimize their locations

real-estate-icon

Real
estate

5-10% faster support resolution by providing information on a property and surrounding areas

travel-icon

Travel
& tourism

5-9% decrease in support calls by helping travel customers with route and itinerary planning

4. Optimize deliveries

Manage route logistics and identify hot spots to provide incentives to drivers for greater efficiency and cost savings.

retail

Retail
& e-commerce

7-12% reduction in support calls by using location intelligence to provide information about a service

delivery

Logistics
& delivery

5-8% revenue growth for logistics businesses who optimize their locations

Implications for Companies Moving Forward

In the future, location intelligence will be an essential aspect of personalizing customer engagement online and offline and of optimizing complex operations. Facing this reality, companies across industries must take firm steps to improve their location intelligence capabilities. They must maintain high levels of quality in current location-based uses while also devising new ways to use location intelligence to transform customer experiences and business operations. Let us help you leverage location intelligence across your business to stay in an advantageous position!