How to use geomarketing to find new customers

How to use geomarketing to find new customers There are numerous ways to do geomarketing: some are very important because they help us find new customers, others help make work easier because our data is organized better. In all events, we can always gain effective advantages in several fields, from time saved to reduced costs. Just think of what it means for a company or professional to have to manage thousands of addresses linked to likewise customer names, and not have any idea where they are situated geographically. When we need to mail promotions, for example selling pellet stoves, we have to calculate where the customers are located to ensure perfect timing in relation to the climate.

A company that sells clothing for deep sea fishing however, could be much more interested in sending promotional brochures to potential customers who live on the coast rather than in the mountains. It is not just a question of reducing costs and saving man hours, rather it means optimizing your budget and limiting the size of the most attractive target circle.

To understand this better, let us consider two different situations: the first a company that works by intuition, and the second a competitor that works using geomarketing logic within the country. We are dealing with pharmaceutical products for asthma and breathing problems. The target is drugstores that sell these products retail. In both cases the promotion campaign budget is €15,000.

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In case 1, the pharmaceutical company uses a supplier database containing 3,000 drugstores, including their addresses. As they have no perception of where they are located, the company follows a routine procedure: massive mailing of the new product catalogue to 3,000 names at a cost of €4 for each mail. It seems a valid method, if it were not for the fact that asthma and breathing problems are more frequent in large towns, rather than by the sea or in the mountains where they are much lower. A detail that would have avoided mailing about one thousand catalogues, for a total saving of €4,000. Result: €12,000 for mailing the catalogues, €1,000 for their production, €2,000 for their printing. Total €15,000 to reach only 2,000 effective target names.


In the second case, the competitor invests a small part of the budget to buy geocoding software able to show a map of the location of the drugstores they supply. So with more names (4,000 in total) they are able to easily identify the drugstores in cities with more than 300,000 inhabitants, which are not only a larger market but also have more people living there who suffer from asthma and breathing problems. The result is mailing 2,500 catalogues for a total cost of €10,000. With €1,000 less budget, the company that uses geomarketing logic not only saves in catalogue printing and mailing costs (less sent), but can also count on greater information with respect to the competitor (the geographic position of the drugstores) and, above all, reaches a more receptive target for the products being sold.


Obviously we have just given one of the endless examples of geomarketing use in a medium-large sized company. As we said in the introduction, there are numerous ways to do geomarketing and only a part involves acquiring new customers. Obviously though the geomarketing solutions all require cutting edge data processing software. This software analyses the records in simple excel databases or other formats and links any address to its geographic coordinates (georeference), and is also able to position them on a dynamic map (geolocation). But what if the data are incomplete or contain potential errors or are recurring)?

No problem: cutting edge address geocoding software like Address4 first of all improves the information, this includes checking the data, updating it, automatic completion with missing information, correcting any data entry mistakes, association with other data that is the same (duplication removal). A procedure that guarantees the highest quality standards for those – data entry operators, marketing managers, developers – who have to manage the data and get the best from it. The 4 geocoding methods provided by Address4, geocoding onlinegeocoding autocompletebatch geocoding addresses and reverse geocoding, satisfy all geomarketing needs to find new customers, streamline decision making and optimize the budget. Try the free demo now, no strings attached!

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