Go Smart, Go Hyperlocal
“Hyperlocal marketing” or “Hyperlocal geotargeting” has turned a buzz word post the emergence of user-created journalism, with the term ‘hyperlocal’, meaning ‘extremely local’, being coined by websites publishing information about cars, real estates and other saleable assets targeted to a town or even a zip code. The expression primarily implies marketing and advertising that is finely targeted towards the potential customers in a highly specific, demographically constricted region.
Why exactly do businesses need to adopt this strategy?
- To bring in leads that are already prepared to make a purchase. Hyperlocal targeting helps capitalize on the “Near-me” searches extensively.
- Big companies can reach their potential customers via national ad campaigns. However, for small enterprises, this is quite a waste of investment. Local business owners mostly profit from nearby customers walking into their stores. Geofencing can help them capture this target audience effectively.
- Hyperlocal marketing helps enterprises harness the strength of the ripple effect, by building their brand recognition in close proximity to where they are based. The local customers know who they are, and what exactly they do.
How can Location Intelligence help businesses in this aspect?
- Location data would reveal powerful insights about target locations possessing the highest business potential. This would also help them prioritize opportunities for market expansion.
- Resident surveys, mobile phone signal patterns, reviews of local stores and restaurants would aid in the identification of “hyperlocal” patterns — granular trends at the city block level.
- Long-term market forecasts, prior to investments, can be made by means of several such macroeconomic and demographic indicators.
- Appropriate location-based ads would help businesses target customers who are physically in or around the competitor’s place, otherwise known as Geo-conquesting. Delivery of personalized mobile ads to these target customers within a certain radius of retail stores is also made feasible by Location DNA, often termed as Geo Aware Targeting.
Market Potential Scorecard:
Location data of the target geographies can help assess the market potential index of every locality in the city as well the business potential of every store in any locality. The location parameters that help determine the same are:
Ø Population and affluence of the locality
Ø Footfall and Customer’s spending behaviour across product categories.
Ø Recency and frequency of purchases.
Ø Nearby Points of Interest (POIs), inclusive of ATMs, Banks, Residential complexes, Schools and Colleges, and so on.
Ø Competitors in the vicinity.
Using the insights from the Market Potential index, once the stores and localities with the most points of interest and highest business potential are identified, up and coming retail enterprises can now obtain a clear picture as to how well they would fare if they choose to go hyperlocal in that locality. Existing retail businesses, on the other hand, can reach out to a greater customer base by means of activation of existing stores in areas of high business potential, and may also expand their network in the same region in order to capitalize on demand.
The formation of several such Hyperlocal retail system networks under different realms would result in the formation of a self-reliant hyperlocal ecosystem, that would enable customers to buy anything from their neighbourhood stores. Prioritizing the best locations to target thus helps in the optimization of returns on marketing spend.
The dynamic map can be utilized to explore other similar metrics and trends as well, and thereby fabricate a cohesive hyperlocal business strategy for retail enterprises- all in a single screen.