How Geocoding Works: A Simple Guide

How Geocoding Works: A Simple Guide

Geocoding helps businesses pinpoint specific locations, track vehicle movements, or even monitor human activity. It works by converting address data into geographic coordinates, which can then be displayed on a map to make everything easier to visualize and understand.

 

Want to know how geocoding actually works? We’ll explain everything in this article—keep reading!

 

How Geocoding Works

To carry out geocoding, businesses need special software or platforms that support this process, such as location intelligence software. This software is designed to help businesses process and interpret location data. Basically, there are two main components that must be in the geocoding software: the reference data set and the geocoding algorithm.

 

Here are the steps on how it works:

 

User input address

When a business or user enters an address into geocoding software, the process starts. The address can be any kind of location info, like postal codes, landmarks (such as buildings, parks, or monuments), or just a simple street name and building number.

 

Users can even type in short forms for addresses. For instance, if the address is Boulevard BSD, you can just write it as Blvd BSD. The geocoding software can recognize and match these variations with the data in its database.

 

Address parsing process

Once the address is entered, the next step is address parsing. This means breaking down the address into smaller, more specific parts.

 

For example, if the address is Jl. Kenanga, 35, the software will split it into easier-to-understand sections like:

 

– Street: The type of address (street, alley, neighborhood, etc.)

– Kenanga: The name of the street

– 35: The building or house number

 

By parsing the address, the software can better understand and match each element more accurately.

 

Address search process  

The geocoding software searches for the address you’ve entered in a database called the Address Locator. This database contains all the address data along with geographic info like latitude and longitude. After finding a match, the software determines the most accurate location based on how well the entered address matches the database.

 

Address potential grading 

Once the software matches the address with the Address Locator data, it gives the address a match score, which shows how well the address fits. The score ranges from 0 to 100, with higher scores indicating a more accurate match.

 

But if there are spelling mistakes, mismatched street names or house numbers, or missing details like a postal code, the match score might be lower.

 

Address match filter

After giving each potential address a match score, the geocoding software will filter them out. It will only keep the addresses that have a match score above a certain level. The business will then get a list of addresses that are the closest or most suitable to the one entered by the user.

 

Find the Best  Locations for Your Business with LOKASI Intelligence

LOKASI Intelligence is a geospatial platform that combines location intelligence with complete location data. It’s built to help businesses make smarter location-based decisions, like picking the best spots to open new branches or grow their network.

 

All a business needs to do is enter details about its target market, like demographic info, income levels, or customer preferences. LOKASI will process this and suggest the best areas to consider.

 

Plus, LOKASI gives you valuable data on foot traffic. This helps businesses understand when certain places are busiest and where visitors are coming from.

 

Want to learn more about how LOKASI Intelligence can support your business? Get in touch at Email: [email protected] WhatsApp: 087779077750

 

FAQs

How does geocoding work?  

To process geocoding, businesses need geocoding software, which has two main components: an address database and a geocoding algorithm. Here’s how it works: first, addresses are inputted, then parsed, matched with the Address Locator, and finally, a match score is provided.

 

What does geocoding mean?  

Geocoding is the process of converting location descriptions, such as addresses or place names, into specific geographic coordinates, namely latitude and longitude.

 

What is the use of geocoding? 

Geocoding can be used in various ways, including helping businesses analyze location-based data, such as customer distribution patterns or visit trends in different areas. It’s also useful for searching for new locations, managing business and consumer data, and for distribution and route planning, among other applications.

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