As you grow your business, it’s important to know what your market penetration is and how much potential there is for growth in your target area. Have you saturated the market or do you have room to reach more customers? It’s also critical to know the effectiveness of your current marketing. Are you marketing to the right areas or do you need to focus your efforts elsewhere to reach maximum ROI? The best way to find this information is to run a GeoBlend analysis on your customer data.
AMP’s GeoBlend analysis measures the geographical density and propensity of your customers and marketing campaigns. We begin the process by analyzing your customers’ postal addresses. In order to fully understand your market and reach, up to ten layers of geographical data are analyzed. Some of those layers might include neighborhoods, zip codes, block groups, Metropolitan Statistical Area, etc. When applicable, we incorporate distance calculation of customers to location in the blended spatial analysis.
Each spatial layer offers unique insights about your customers and the areas they live in. We utilize the information to identify key characteristics of your most profitable areas as well as the areas where marketing dollars are wasted.
Customized GeoBlend Analysis
Since each layer of geographical data offers different insights, we blend multiple layers together to create the clearest picture. Every business is unique, so which layers are used to analyze your customers and how much weight each layer is given is custom selected and called a GeoBlend.
Not every layer will offer helpful information for your business while some offer important details about who and where your best customers are. Through years of experience in spatial analyses, we apply different business rules to establish the right GeoBlend for your company and project. It can take some time to get the right blend, but it is well worth the effort.
After the data has been analyzed, data scientists can map out your customers. Creating maps of the analysis not only shows you where your customers are but also plots out where your best prospects are located. You can easily see which areas have the most potential for growth.
On the map below, a business’s current customers are shown in RED dots, revealing their highest market penetration. The GREEN dots highlight its prospective households and potential reach in the target market.
Implementing a GeoBlend Analysis
GeoBlend analyses offer great insights about your business, customers, and target marketing. This information can help you create growth goals for your company. Here’s a few examples of how you can implement one of these analyses into your business.
Grow Your Current Customers
The report will show where you are successfully reaching people and have a strong demand for your products and services. You can send out loyalty offers to these households to drive purchase engagement of customers and prospects alike.
Remove Inactive Zones
A GeoBlend analysis often shows areas you consistently market to where the marketing return on investment is a major loss. We can easily eliminate these areas to ensure a more productive marketing campaign. This can also include areas of high response but no conversions to sales. Ultimately, you want to maximize your marketing return on investment, so tracking beyond responses to actual sales or new customers is critical.
Reach New Prospects
When we build a new customer acquisition model, we usually incorporate a GeoBlend to help us understand our client’s market. We build on spatial variables for companies, so whether you have your own analytics team or you would like us to build a new model, the value is completely transferable. GeoBlend variables inside a model rank the households most likely to be new customers with the uniqueness of household characteristics. This data is combined with spatial weights of where these consumers live.
If you’re interested in a GeoBlend analysis, we can walk you through the needed data to begin the process. If you only have customer email addresses, we have solutions for capturing names and addresses for analyses. Our team can also help you build out your customer information on a more robust level.
Once you have your data ready, determine what your goal is for this analysis. Do you want to identify the best households to target through direct mail or digital channels? See what your potential growth is? Identify good areas to open new locations?
Data scientist analyze data in different ways depending on what you are trying to achieve. We will help you create clear objectives and goals for your data analysis and then customize the GeoBlend analysis to ensure you walk away with the right answers.
If you have questions about GeoBlend analysis or how we can help you grow your business, call or email us today.