It sounds simple, but these insights can only be extracted after masses of data have been validated and analyzed. Data analysis firm Precisely is a specialist in helping location-focused businesses create useful insights from location data. Location data which TomTom has been supplying for over 20 years.
Let’s look at two key industries Precisely operates in, and how they use location data to help companies in these industries excel.
The insurance industry: Eliminating inaccuracies in risk analytics
The impact of location
Underwriting accuracy greatly impacts an insurer’s profitability. One aspect of this accuracy is knowing the exact location of what is being insured. Knowing the location, down to the parcel or building level, includes valuable information that can indicate proximity to different kinds of risk.
In the United States, the cost of flood damage was approximately $17 billion annually between 2010 and 2018, according to the Federal Emergency Management Agency
. Knowing whether an insurance policy ties to a property contained within a flood plain helps underwriters generate more accurately priced policies and reduce losses.
Miscalculation of a location’s risk profile is a common problem when a policy is priced using inaccurate location information. If a property is thought to be somewhere it’s not, the resulting policy will not be a true reflection of that property’s risk. Accurately defining property locations is a key focus for Precisely and its insurance customers, but how can accuracy be improved over current methods?
is the process of pinpointing a building or structure’s actual location versus the center of a land boundary that’s generated from its address. Locating buildings in this way eliminates inaccuracies that could find their way into risk calculations. In other words, it enables insurers to price policies accurately and correctly.
The retail industry: Demographic and location data for stronger customer targeting and segmentation
The impact of location
Retailers are constantly being challenged to create more personalized, customer-centric experiences to outdo the competition. In response to these challenges, they are turning to location data and analytics to hone their business decisions and guide customer-marketing initiatives.
To ensure campaigns are shown to the right audiences, marketing firms demand robust geospatial and demographic insights. Location analytics tools, when used appropriately, can provide retailers with the key insights to develop a successful retail marketing strategy.
Site selection is a major ingredient of any retailer strategy. The location of a store or restaurant can make or break its success. Analyzing locations with geospatial data and tools gives quantitative and qualitative support that can help stores choose the best location for new branches.
Additionally, knowing where a retailer’s target customers live can enable more impactful and efficient marketing campaigns.
Building on TomTom’s location data, Precisely’s demographic dataset can make these solutions a reality for retail businesses.
Precisely’s demographic data ranges from a national to individual level and can provide businesses with granular insights into the lifestyles of customers and target markets. It means campaigns can be more cost effective, messaging can be stronger, and offers made more strategic based on where and who they are shown to.
Spatial insights can be used to identify potential retail location sites and evaluate the competitive landscape.
In simple terms, Precisely’s extensive demographic and location dataset enables businesses to better understand and reach their customers.
Whether it be insurance or retail, the main challenge Precisely faced when developing its data analytics systems was finding the best third-party location provider. So, where did they turn?