How Business Intelligence and Mapping
can Improve Your Business:
Customer and Competitive Analysis
Monica L. Perry
1
“Where’s” your
Most Critical Strategic Marketing Problem?
Customers
Competitors
Customers
Competitors
Positioning
Product
Price
Place
Promotion
Customers
Competitors
Customers
Competitors
2
Why Location is Critical to Customer Behavior
Where
Customer
Operates,
Lives,
Works, Plays
Attitudes
Interests
Needs
Preferences
Behaviors
What, Where, When and How Customers Buy
Impact and Availability of Competitors
3
Target Markets:
The value of knowing “Where”
Customers
Competitors
Customers
Competitors
4
Profiling Customers’ Mean Travel Time
(by Census Tract for 91711 Zip)
5
Profiling by Block Group
Men’s Apparel NYC
•
http://www.mappinganalytics.com/consulting/site-selection.html
6
Marketing Mix Decisions:
The value of knowing “Where”
Customers
Competitors
Customers
Competitors
Positioning
Product
Price
Place
Promotion
Geodemographic Segmentation
Estimating Potential and Sales Forecasts
Customer Cloning
7
Site Market Modeling - Known to Unknown
Forecasting, Sales Potential
Low Revenue
Site
High
Revenue
Site
Forecast
High or Low
Revenue?
Use information about known sites
to predict performance of proposed sites
8
Site Market Modeling - Known to Unknown
Customer Cloning, Marketing Mix Geo-Customization
Low Revenue
Site
High
Revenue
Site
Forecast
High or Low
Revenue?
Use information about known sites
to predict performance of proposed sites
9
Retail Trade Area Analysis
Figure 2a. Patronage probability model - theoretical store trade area.
Blue – green – yellow – red progression
represents zones of increasing patronage probability.
Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches
http://www.directionsmag.com/features.php?feature_id=5
10
Retail Trade Area Analysis: Drive Time
Figure 3b. Drive time analysis showing the location of demographic samples.
Blue dots = sample within a 10-minute drive.
Green dots = sample within 5-mile radius, but outside 10-minute drive time polygon.
Red colored dots that fall within the 15-minute drive time polygon represent demographics that would not
be included using a traditional 5-mile radius approach
Source: Segal (1998) Retail Trade Area Analysis: Concepts and New Approaches
http://www.directionsmag.com/features.php?feature_id=5
11
Marketing Mix Decisions:
The value of knowing “Where”
Customers
Competitors
Customers
Competitors
Positioning
Product
Price
Place
Promotion
Which Sites, Territories are Underperforming? Overperforming?
Profiling Customers
12
Retail Trade Area Analysis
Trade area map - revenue concentration by block groups
blue – green – yellow – red = progression from low to high revenue.
•
Source: Segal (1998) Retail Trade Area Analysis: Concepts and New
Approaches http://www.directionsmag.com/features.php?feature_id=5
13
Marketing Mix Decisions:
The value of knowing “Where”
Customers
Competitors
Customers
Competitors
Positioning
Product
Price
Place
Promotion
A few examples….
• Hewlett Packard
• BMW Lead Generation Direct Mail
• Albertson College
14
Some Geo-Customization in
Marketing Communications
• Hewlett Packard
• BMW Lead Generation Direct Mail
• Albertson College
15
HP Direct Email
16
BMW Lead Generation program
• Five levels of customization
17
The right creative:
Albertson College
• The small town location
offered different
advantages to different
students.
• What creative differences
are apparent?
• What additional
geographic variable(s)
could be used in deciding
which creative to send to
prospective students?
18
“Where’s” your
Most Critical Marketing Problem?
Customers
Competitors
Customers
Competitors
Positioning
Product
Price
Place
Promotion
Customers
Competitors
Customers
Competitors
19
What Questions
Do You Have?
20