Posted by Michael McBrien
As the big data boom has gained traction in recent years, location intelligence has grown in importance as more organizations look to benefit from the insights that location data provides. This is especially true in the Financial Services industry as they look for new ways to gain a competitive advantage. According to a recent Carto report, 78% of C-level and management respondents said there was a strong likelihood they would invest in Location Intelligence within the next year.
While location intelligence has become a widely used term, Skyhook defines it as being generated from observations of mobile devices and known places of interest. We learn about a place by observing the signals that originate from that place --- the Wi-Fi signals that emanate from it, the devices that visit it, and the volume of activity around it. The more we know about a given place, the more we also know about the person behind the device that visited there.
Below are four examples of how location intelligence can be beneficial to the Financial Services industry:
Foot traffic analysis provides the competitive and market insights needed to gain a deeper understanding of trends in consumer behavior. Understanding these trends and patterns such as where consumers shop or socialize most often allows you to tailor messaging to their personal interests when they enter a branch or even a competitor’s location.
Leveraging location intelligence, your business can geofence competitors’ locations to get a better idea of consumer foot traffic patterns and loyalty levels. Having an understanding of when target consumers are at a competitor’s location can help you target them with messaging that may sway their loyalty in your favor.
Foot traffic analysis enables your business to see where your target market visits and also allows you to analyze movement patterns around specific areas. By accurately capturing this data, you gain insight into relevant consumer habits such as where they shop the most and how frequently. This data allows you to make an informed decision on where to open your next branch to ensure success.
Location insights allow you to measure digital campaign return on investment (ROI) by accurately correlating store visits to ad exposure. You can also identify branches visited by specific targeted groups compared with your overall ad audience. Understanding the correlation will ensure you aren’t wasting ad spend on the wrong target audiences or the wrong messaging.
Traveling internationally can be a lot of fun and rewarding, but it can also be a hassle when it comes to notifying a bank that someone is traveling. Failing to alert the bank might result in a stop being put on his or her card due to suspicious activity, which can be embarrassing when paying for something like a business dinner. Location intelligence can help solve this problem. When a phone enters an international terminal, you can send a notification reminding them to turn on a travel notification. This will cut down on embarrassing situations on the road for your clients.
Location intelligence can also be helpful for identifying fraudulent activities at a store. If a bank pings a customer's phone and it is located far away from the location of the transaction, the bank can call the customer to verify the purchase or put a stop to the transaction. If it is a match to where the retailer is located, then the transaction is potentially more secure.
Location intelligence can greatly impact the decisions that Financial Services industry leaders are making. Incorporating this data into your strategies and decisions will increase both revenue and ROI. Location data can provide a 360 degree view of a consumer and provide invaluable insight to help you make informed business decisions possible in today’s competitive marketplace when it’s more critical than ever before.
To learn more about Geospatial Insights, read more here or download the whitepaper below: