Geo-marketing and omni-channel strategy
Geo-marketing consists in using geographical information to optimize sales and marketing decisions. Companies’ in-house databases and socio-demographic and behavioral data are analyzed together to improve distribution network performance: catchment areas, customer area, site openings/closures, coverage analysis…
A fully-fledged decision-support tool, geo-marketing addresses the many challenges facing marketing and sales management: is my market well covered? Where do I site my new sales outlets? How do I reorganise my network? Who are my customers? Are agencies competing with one another? Are my products and services appropriate to my customer base?…
From selecting the solution to the benefits it generates, via its use in the field, LCL has built an effective sales strategy based on geo-marketing.
“Initially the tool was to address conventional geo-decision-making purposes, such as the network grid, and it does this perfectly.”
Analyzing the potential of one’s network is indispensable in maximizing sales outlet profitability and maximizing market coverage. This requires you to:
With omni-channel strategies becoming ubiquitous, all the network data needs to be cross-referenced and analyzed if the best decisions are to be made. For example : Is the e-commerce site cannibalizing the stores? Is the presence of a physical store increasing the area’s e-commerce turnover? Do you have the right delivery capacities?
Controlling the network grid also translates into efficient territory organization. The sales sectors and teams need to be fairly distributed: turnover potential, number of customers, accessibility, compactness…
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Where do my customers come from? Who are they? What are their purchasing habits?… Customer retention databases need to be exploited and cross-referenced with external data (socio-demographic and behavioural) to define customer types and to identify priority targeting areas. Prospecting or customer retention: geo-marketing enables you to send appropriate messages to each profile.
Accurate knowledge of the socio-demographic environment of sales outlets and agencies enables them to be made more attractive. Product range, store surface area, required staffing levels, objectives, POS... : geo-merchandizing helps tailor products and services to the local consumption and competitive context.
Geo-marketing reports improve the analysis and management of sales and marketing activities. New opening projects, summary reports and sales reporting benefit from visual and summary analytical maps. These communication tools facilitate information sharing and the monitoring of the principal KPIs by all the company’s management teams.
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The catchment area is a sales outlet’s area of influence. It enables analysis of where a store’s or agency’s actual and potential customers come from, by taking account of access time and distance, attractiveness and competitive criteria. Identifying the customer base located 5, 10 or 15 minutes from the sales outlet enables you to get to know your customers better and adapt your positioning accordingly. Studying the catchment areas of your entire network helps you to exploit market potential to its utmost, reduce cannibalization between sales outlets and run the necessary simulations for selecting the best site locations.
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The outcome far exceeds our expectations. The GEOCONCEPT solution enabled us to considerably simplify our network's geo-marketing data by making them ultra clear and relevant for local decision-makers.
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The solution enables you to send a monthly summary overview of all the relevant decision-making data to your store managers. Since its deployment, we have been opening an average of 28 new stores a year and we have put in place strategic expansion plans for the group’s 3 brands.
We provide the FDJ agencies with an à la carte portfolio optimization service. The Regional Directorates escalate the requirements so that we can plan the responses. We can then run as many simulations as necessary at the agency managers’ request.
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Johnson & Johnson, the world’s largest healthcare company, uses high-quality data, strategic teams and sales forces are now more independent and agile thanks to Geoconcept Sales & Marketing.
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In a sector as competitive as ours, the Sales & Marketing solution rapidly became indispensable in creating an optimized distribution of our restaurant outlets and efficiently evaluating priority development areas.
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We now have a comprehensive solution which will enable us to ramp up geo-marketing. In discovering the tool’s capabilities, the sales assessors will want to integrate the geographical and cartographic dimension into their analyses.
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Over the years, GEOCONCEPT has helped us perfect our geo-marketing strategy. The studies we undertake nowadays are without doubt valuable decision-making tools for our future sites.
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Definition, methods, analysis… This summary white paper is your key to understanding the principles and benefits of geographical sectoring for sales activities.
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