The automotive industry, like any other industry, has its own set of challenges such as market changes, competition, globalization, supply chains, and volatility. The solution to these challenges requires businesses to gather various data, including location data.
Location data is a crucial aspect of decision-making in the automotive industry. It provides insights that can help automotive businesses enhance their operations. In this article, we’ll explore five benefits of location data that are worth knowing for the automotive industry.
What is Location Data?
Location data refers to information regarding the geographical location of a device or asset, as well as the digital footprint of human and object movements in the real world. This data provides critical context in business analysis that cannot be provided by ordinary tables, charts, or diagrams. This context is useful in planning and other aspects of business operations.
Location data is typically collected from sources like phones, WiFi networks, beacons, raster data, connected vehicles, and other remote monitoring tools that can track people and objects.
Here are some types of location data including:
– Point of Interest (POI) Data
– Foot Traffic Data
– People Density
– Mobile Data
– Demographic Data
Benefits of Location Data in the Automotive Industry
After comprehending the definition and various types of location data commonly utilized by businesses, we can now look into five uses of location data for the automotive industry.
1. Optimizing dealer networks
Through location data, including demographic data, points of interest (POI), mobile data, and location trends, major automotive companies can optimize their dealer networks. They can locate and identify the ideal locations to establish dealer stores and repair service centers.
Demographic data can also assist in determining whether to expand the business or close dealer stores after analyzing store performance and identifying areas around existing store locations.
Businesses can therefore concentrate more on profitable locations and effectively manage resources, which will undoubtedly support business growth and success.
2. Enhancing marketing strategies
Location data provides information regarding consumer behavior, who is in their market area, and who might visit specific dealerships in that area. This helps marketers design appropriate strategies and campaigns.
Location data also aids the marketing team in understanding successful marketing and promotional components that attract consumer visits to stores or dealerships.
This is critical because comprehending consumer trends and behavior patterns, such as where they shop or socialize, helps the marketing team personalize messages to consumers’ interests when visiting dealerships.
3. Location tracking for inventory management
When managing warehouses or stocks, it is crucial to keep track of them to maintain control and ensure adequate supply.
Location data technology can help car companies and car parts providers monitor their inventory locations. This helps businesses avoid issues such as stockpiling, and production constraints and reduces unproductive time.
Furthermore, businesses can save hundreds of millions each year for audits, controls, and minimizing stock losses.
4. Assisting automated vehicles
Location technology and data, such as lidar, radar, cameras, and navigation, provide autonomous vehicles with comprehensive, complete, and real-time information, enabling them to monitor their surroundings and move safely.
High-quality location data supports the use of modern geospatial and artificial intelligence (AI) technologies, which enable automated vehicles to make strategic decisions about the best routes to take.
5. Locating the best spots for opening dealership stores
Automotive companies can use location data to identify the most suitable locations for new stores. By combining location intelligence technology and information such as demographics, points of interest (POI), mobile data, and population density, businesses can determine the best locations for opening new dealerships.
Additionally, businesses can use location analytics, such as catchment area analysis and cannibalization analysis, to prevent competition between existing and new dealerships, thus avoiding losses and profit declines.
Find the Best Locations for New Dealerships with LOKASI Intelligence
LOKASI Intelligence is a platform that integrates geospatial analytics with location intelligence to aid businesses in identifying strategic locations for opening new dealership stores.
By using LOKASI, businesses can explore particular areas, assess the available attractions, evaluate accessibility, estimate income, access demographic information, and much more.
In addition, LOKASI provides comprehensive location data, such as demographic data, socioeconomic status, mobile data, people density, and others, which businesses can use to gain a better understanding of their consumers.
Learn more about how LOKASI Intelligence can help businesses by contacting email: [email protected] or WhatsApp: 087779077750
FAQ
What is location data?
Location data tells us where devices or items are located and tracks the movements of people and objects in the real world.
What are the uses of location data in the automotive industry?
Location data in the automotive industry helps optimize dealer networks, enhance marketing strategies, track inventory, assist automated vehicles, and find ideal locations for new dealership stores.
How can location data support warehouse management?
Location data technology assists car companies in monitoring inventory locations, preventing problems like stockpiling and production constraints, and minimizing unproductive time.
