Supercharged Location Data: Heatmaps and Clusters

There’s a cohort-based type of location data called cluster data, which is pretty much exactly what it sounds like: understanding where and when clusters of your customers form and delivering appropriate messaging to them when they’re gathered in a geographically advantageous area. A sophisticated location data platform should offer you a “heat map” visualization that shows you where your high-density clusters of your customers are, either in real-time or at a specific past day and time frame (historical location data is also valuable, so be sure that the platform you deploy offers date- and time-ranging).

 

Marketing to a cluster of your customers can be very beneficial, particularly when you introduce a “flash sale” element and play the intoxicating FOMO (fear of missing out) card. Imagine you own a beachwear store and it’s one of those postcard days when everyone wants to be on the sand or in the water. Great for the beachgoers, but not great for business. You bring up your location marketing platform, see that you have a cluster of 218 customers within two miles of your store, and create an enticing push notification to this clustered cohort: “40% off all swimwear for the next 25 customers!”.

 

Cluster marketing can also be effective by leveraging herd mentality to your advantage. Let’s look into the future to a time when you’ve sold your beachwear store and used the proceeds to open a taco stand. It’s 4:30pm, and you know that stomachs are starting to growl. You fire off a “Happy hour! 2-for-1 beers plus dollar chips and salsa until 6pm” notification from your location platform. Because you know you have a good cluster of customers nearby, you can be assured that the simultaneous delivery of this compelling offer to multiple people in a group will foster herd mentality and trigger a joint decision to patronize your stand.

 

There is great power in numbers!

 

With a time-to-create-and-send investment of less than five minutes and a delivery cost of zero dollars, every incremental customer you drive into your store increases profits.