Geospatial analysis is a powerful tool for business decision making. From optimizing distribution routes to identifying areas with high sales potential, it can provide valuable information to make informed and strategic decisions.
In Mexico, the use of analytical tools for business decision making has been increasing. According to KPMG, 73% of companies in Mexico use analytical tools and 57% of those that do not use them plan to do so in the near future.
In this article, we will explore six examples of how geospatial analysis has helped companies make strategic decisions in Mexico. Illustrating how it can provide valuable information for a wide range of business sectors, from retail to the automotive industry.
- ? Optimize your distribution routes
- ? Customize your offers and promotions
- ? Analyze the security of your sites
- ? Identify the best places to open a new branch office.
- ? Analyze the impact of regional events on your business
- ? Identify the best location for your advertisement
? Optimize your distribution routes
Do you have a business that depends on the distribution of products or services? Geospatial analysis can help you optimize your distribution routes. By analyzing the geographic data of your customers and suppliers, you can determine the best way to reach them and reduce transportation costs. According to ESRI data, in Mexico, the optimization of distribution routes has allowed companies to reduce transportation costs by up to 20%.
? Customize your offers and promotions
Do you want to offer personalized promotions for your customers? Geospatial analysis can help you identify consumption patterns and personalize your offers. By analyzing your customers’ geographic and consumption data, you can determine which products or services are most popular in each geographic area and offer customized promotions for each customer group. According to Accenture data, the personalization of offers and promotions has allowed companies to increase their sales by up to 30% in Mexico and Latin America.
? Analyze the security of your sites
Are you concerned about security in the areas where you have your business? Geospatial analysis can help you analyze the incidence of crime in different geographic areas. In Mexico, according to data from the National Public Security System, the number of robberies with violence increased by 4.3% in 2020, which represents a significant threat to businesses across the country. By analyzing the security data and geographic location of your business, you can take preventive measures to reduce the risk of financial loss. Geospatial analysis allows you to identify the highest risk areas and measure the time your assets spend in these areas. This allows you to take precautionary measures before a loss occurs.
? Identify the best places to open a new branch office.
Are you considering expanding your business into new territories? Geospatial analysis can help you identify the most promising areas to do so. By analyzing the geographic and consumption data of your customers, you can determine the areas with the highest demand and the best way to reach them. According to INEGI data in Mexico, business expansion into new territories has allowed companies to increase their revenues by up to 40%.
? Analyze the impact of regional events on your business
Would you like to know how events affect your business? Geostatistics can help you analyze the impact of events in different geographic areas. For example, if you have a fast food business in a tourist area, you can analyze the consumption patterns of your customers during tourist events and determine the best way to prepare for them. In Mexico, tourism events generate revenues of more than US$23 billion a year.
? Identify the best location for your advertisement
If you are looking to increase the visibility of your business, consider an advertising campaign. In this sense, Geostatistics can be your ally to identify the best location to place your advertising. By analyzing consumer data and the geographic location of your potential customers, you will be able to determine the areas with the highest influx of people and the best way to reach them. This way, you can optimize your resources and maximize the impact of your advertising campaign.
In summary, geospatial analysis is a powerful tool for business decision making. Whether you want to optimize routes, customize promotions, analyze security or identify locations for new branches, geostatistics enables informed and strategic decisions.
At Enacment, we have experts in applied geostatistics who can help you apply these tools to your business. If you are interested in finding out how we can help you, feel free to contact us for a free consultation. Together we can take your business to the next level.
If you want to read about how UX processes can help create successful products, we recommend: The importance of the UX process in the success of digital products.