How location data can be leveraged for customer analytics

Published On March 9, 2020
In Customer Analytics, Blog Archives

The rampant use of smartphones has led to an explosion of user data and information, one of them being location data, which is proving to be extremely beneficial for marketers and business owners. These days, consumers demand a highly-personalized environment in which all their interactions with their smartphones or devices are tailored according to individual needs.  

According to Grand View Research, in 2016, the global location intelligence market was valued at $8.12 billion and is predicted to expand at a CAGR of 15.3% by 2025. Location data gets collected through various sources such as social media check-ins, purchase orders, mobile devices, Bluetooth and Wi-Fi enabled devices, GPS enabled devices etc. Currently, most companies utilize location data to engage with their target audience using multiple marketing techniques such as proximity marketing.  

Using location data for customer analytics 

Personalized notifications with Proximity Marketing 

Businesses are entering the era of proximity marketing by revamping the way a customer shops at a retail store. It was reported that the placement of “beacons” inside stores resulted in a 15% increase in foot-fall and 73% increase in likelihood to purchase. Beacons are small, wireless sensors which are battery operated, utilizing low-energy Bluetooth technology to transmit signals to other nearby smart devices. Customers just need to download the retail store’s app and Voila! The realm of personalization awaits them. Now, whenever they enter a beacon enabled store, they can receive discounts and promotional deals directly on their smart devices related to the products in the aisle they are browsing.  This whole process of flashing personalized content to the buyers helps generate another set of valuable data about the different consumer behavior patterns and buying trends.  

Insights about target audience 

To dive deeper into customer analytics, leveraging the power of location data is extremely crucial. If the geo-location data is effectively analyzed, the insights can open doors for exponential revenue growth opportunities and up-sells. The top customer analytics companies use location data to enable businesses learn more who their customers are and what they want. Customer analytics, driven by location data, helps get valuable insights about the lookalike audiences which in-turn aids companies to improve & enhance their new customer acquisition strategies.  

Perfecting customer segmentation 

Segmentation of customers into different groups according to their behavior and needs helps business owners and marketers curate personalized marketing campaigns and predict purchasing patterns. Data analytics techniques, driven by AI and machine learning, enhance the analysis capabilities and boost the process of utilizing informative data. This aids in deciphering the correct patterns and other analogous attributes which can be further analyzed to curate customer segments. For example, a hotel’s marketing team can use location data to increase booking reservations by grouping people according to their hotel amenities preferences, targeting them with the right marketing campaign. 


Location data is a powerful resource for customer analytics as it provides unique insights about customers which otherwise other data points aren’t able to. Analysis of location information enables companies to build a comprehensive market intelligence system which helps them understand customer journeys and needs better, keeping in mind the security and privacy concerns of the customers.  

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SGA Digital Marketing Team
SGA Digital Marketing Team
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The SG Analytics Digital Marketing team creates and optimizes content for service and industry-specific blogs. We are a dynamic team focused on building our company's brand online, as well as sharing the expertise of our subject matter experts through the medium of our thought leadership blogs.

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