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Analysing Car Sales Using WebMap Part 1

This can apply to any segment, but lets use car sales as an example today. Lets imagine you are Sales Manager for a car dealership. You have a budget to achieve and you need to understand what is going on in your territory. You have 6 sales people, each has a unit and dollar budget and you have a budget for each model of car you have on offer.

You have got some excellent sales history, because you are selling big ticket items and you know where the people live who purchased your cars. Using the GeoSmart Business Visualisation Application you can see the locations of all the cars sold in December.

Small Car Sales

In this example, you are looking at small engine car sales from your dealership in an area of Auckland’s North Shore. This already shows you that you seem to have made sales in clusters of area, but there are other areas where you haven’t made sales of this class of vehicle.

Now lets think about other things you can do. First we can also overlay in different colours, car sales for December of your other models. You can display each model’s sales in a different colour. Now you may start to see some change, you may see that you get clusters of SUV or high end sedan sales in other areas, or you may still see gaps.

Another thing you can do as a separate view is look at all sales by one of your sales people on the map. In the same way as you did with the car models, you can assign each sales person a colour and display their sales on the map at the same time. You may again see some interesting things. Maybe one sales person is getting more sales in a particular area. He may be using a referral technique that the others can learn from. I’m being simplistic and generalist here, but there is always going to be a reason for the results you are getting and these reasons are often impossible to find using spreadsheets and tables on their own.

Another query you could run is viewing car sales per sales person by model, comparing them with other sales people per model on the map.

Given that you have sales history for each month, you could do the same sort of thing by visualising the above information by date. Assign a different colour to each month and you can then view each map and see if you can spot any trends. In your financial systems you have a wealth of information and we provide the ability to query that information and display in on the map. For example, some of the things you might query are:

  • Gender of the purchaser?
  • Age Group?
  • Have they purchased from you before?
  • What was their last car? Same brand or change? Larger or smaller?
  • Was there a trade in?
  • Was it a profitable sale?
  • Was it for work or personal use?

The industry produces statistics each month. The latest reports on the AA Website say that the top selling model for December 2010 was the Toyota Corolla, but also interesting was that second was Toyota Hilux and third was Holden Commodore. So we have small to medium sized cars as most popular, but light commercials coming second and larger sedans coming third. Obviously there is much more to it and the dealership will have much more intelligence. The key here is whether the same trend is happening in your area and how you can capitalise on that knowledge, something I will look at in further blogs.

If this is of interest, please subscribe, or bookmark this blog and if you know anyone to whom this is of interest, why not send them a link. In business we all have a wealth of reports, but it is very easy to suffer death by statistics. There is an old adage that a picture speaks a thousand words and maps are a great way of delving into your business data to find knowledge that may otherwise remain hidden.

If you have questions, or would like to know more, please feel free to contact us.

January 19, 2011 Posted by | Auckland, Business Analytics, Distribution, geosmart, GIS, lbs, location based services, map tools, Mapping Applications, maps, Marketing, new zealand, new zealand maps, Retail Profit, ROI, SaaS, Sales, sales territory, territory management, Uncategorized, Web Map, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Franchise Territory Mapping Part 2 with Demographics

A couple of days ago I blogged about using our new territory mapping application. In a business to consumer environment a powerful component is understanding who your target customers are.

One franchise industry I talked about was lawn mowing. One of the features of our new application is that it integrates the Department of Statistics Census Mesh Blocks. A mesh block is the smallest geographical unit in New Zealand and Australia and these can be spatially interrogated on the basis of a number of key questions asked in the Census which typically occurs every five years.

Meshblocks can vary in size from zero population to around 500 people and the information contained can be very powerful for decision makers if you ask the right questions.

So lets stick with the lawn mowing example for a bit. What sort of people would pay someone else to mow their lawns. Now I’m not in that business, but here are some thoughts. I would start with people who are time poor and have a reasonably high household income. Home ownership might be another criteria.

Our application will allow you to do your own queries within the Census data and we can even provide you with a list of all the street addresses within a meshblock that you identify as being a good target for marketing, so you can do some smart target marketing.

If you know the target demographics for your franchise business, our application will make it easy for you to determine the size of the franchise territories.

I’ve created a little example here to illustrate. Here we have a hypothetical lawn mowing franchise territory on Auckland’s North Shore. Using the GeoSmart Census Query Tool I have looked for mesh blocks within the territory using actual 2006 NZ Department of Statistics data. I’m looking for low hanging fruit, i.e. a demographic that I think would be easy to sell lawn mowing services to and probably other services if appropriate such as landscaping and general garden maintenance. I queried looking for mesh blocks which have a combined annual household income above $85,000 and greater than 85% of dwellings are occupied by their owners.


Owner Occupied high household income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Would you agree that these mesh blocks would be a good area to target if I want to grow my business? So what next? Subscribe to this blog for more ideas, or bookmark it and come back for another look.

 

 

 

January 16, 2011 Posted by | Auckland, Australia, Australia Maps, Business Analytics, geosmart, GIS, location based services, map tools, Mapping Applications, maps, Marketing, new zealand, new zealand maps, proximity based marketing, ROI, SaaS, Sales, sales territory, territory management, Uncategorized, Web Map, web maps | , , , , , , , , , , , , , , | Leave a comment

Business Territory Mapping

Mapping Sales Territories has always been a fundamental component in business, usually involving printed sheet maps, marker pens and perhaps map pins. You don’t want modify the territories because its a messy or painstaking job. It’s relatively one dimensional, you can’t show everything you want to be able to see, which limits the functionality and benefit you can achieve from it.

Territory management is of course very important and the map is only part of it. It allows you to delineate an area, usually to manage field workforces. It makes it easy for example if a potential client calls, to allocate resources to deal with an opportunity.

In the franchise business, the franchisee buys the rights to do business in a predefined area and the area has a value based partly on the land area, but really it is more about the number of potential clients in that area. Those clients might be other businesses, or it may be consumers. Of course the clients are then also categorised. For example if you are selling medical products for resale, your target clients are going to be pharmacies, medical practices etc. If you are offering lawn mowing or gardening services, your target market is consumers who can afford your services and perhaps are time poor.

GeoSmart is about to launch a SaaS web application which will allow you to not only create your business territories, but also to display existing potential clients, query population census demographic information from the New Zealand Department of Statistics and display that on the map and much more, as outlined in our end of year newsletter.This product will be available for New Zealand and Australia.

To learn more about this new application, please contact us or subscribe to this blog, where we will be exploring ways that you can analyse your business opportunities and results on a web map.

Creating Territories on a web map

January 10, 2011 Posted by | Auckland, Australia, Australia Maps, Delivery, Distribution, geosmart, GIS, location based services, map tools, Mapping Applications, maps, Marketing, new zealand, SaaS, Sales, sales territory, software, territory management, Uncategorized, Web Map, web maps | , , , , , , , , , | Leave a comment

Anyone Can Use Route Optimisation with Route2GO Lite, it’s Easy!

Over the last couple of weeks, I have written about Route2GO Lite, which is a web based application which allows you to calculate the most cost effective order to make customer visits on the road. I talked about Furniture Stores and how they and other bulky goods retailers can get an immediate payback. I gave examples of added value things you can do such as creating a reverse order loading list for the truck and how to use a spreadsheet to calculate other factors such as estimated time on site for deliveries.

What is perhaps a little harder to get across is that this application is really simple to use. Large freight and distribution companies and service companies employ fleet controllers, dispatchers and other management staff and possibly highly skilled IT workers, who deal with things like route optimisation.

In New Zealand, most companies have very small fleets, ranging from 1 to 5 vehicles. They can’t afford to employ technical people and just want to get on with the job. The drivers will have key skills, for example a furniture delivery driver will know how to get in and out of tight spots, they’ll know how to carry furniture without damaging it or the house it is going into. They probably have good social skills and develop good relationships with customers. The problem though is that costs are going up and customers are expecting more for less. We have clients at the top end who have taken over smaller companies who can’t compete, those who don’t have an IT Department.

We have great news! You don’t need an IT Department. You don’t need to buy any software. All you need is access to a  PC connected to the Internet and a browser, such as Firefox. That’s it, no special skills (correct spelling is helpful but we have some fuzzy logic), just a desire to improve efficiency, save some time and money and perhaps provide a better standard of service to your customers.

If you’re business is in New Zealand we invite you to give us a try. The best thing to do would be to give us a few lists of routes that have previously been driven, in the order they were done. That way we can give you the ability to evaluate the route based on the order we recommend. If you can put a dollar cost per driven km, you can calculate the immediate Return On Investment. Of course as per the previous links above, there are many more ways you can benefit from this product.

So here’s our offer: We will run up to 5 routes (Up to a maximum of 25  addresses per trip) for FREE. Our preference is for ones you have already driven so we can give you a real comparison. No risk or commitment required. If you are as excited about the result as we think you will be, we will invite you to set up an account with us. You can use it as often or as little as you like. There are no up front costs and no license fees. You only pay for what you use. In effect it is Software as a Service.

Why have we done this? The way I see it is that it is about working smarter rather than harder. You are good at what you do and we are good at our speciality which is mapping and everything to do with Location Based Services.We are a New Zealand owned company. We understand New Zealand business and New Zealand roads. We want to help New Zealand businesses achieve their goals by providing simple solutions that make a difference.

So why would you take us up on our free trial? I don’t know. I could think of lots of possible reasons, such as:

  • Reduce costs and be more profitable
  • Reduce stress by being able to deliver to your promise
  • Be able to compete with bigger companies
  • Have happy customers who keep coming back and buying or using more of your services
  • Be able to do more jobs without increasing resources
  • Not lose sales or work because you don’t have the ability to deliver quickly
  • Work smarter rather than harder, rely on science instead of guesswork
  • Find out if it is as easy as I say it is
  • Have happier staff who know they can achieve what is expected of them
  • Have customers who recommend you to their peers

I don’t know why you are in business. It could be to get rich, it might be so you can be your own boss, it could be for lifestyle. Whatever it is, we want to help. Why not contact us today on 09 966 8730 or email info@geosmart.co.nz.

October 21, 2010 Posted by | Auckland, channel partner, Delivery, Distribution, driving, Freight, Furniture Delivery, geosmart, GIS, lbs, location based services, map tools, Mapping Applications, maps, new zealand, new zealand maps, optmisation, petrol, Retail Profit, ROI, route optimisation, Route2GO, SaaS, Sales, sales territory, software, systems integrator, territory management, Uncategorized, Web Map | , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Route Optimisation for Retail Merchandisers

In the last few blogs I have been writing about route optimisation for retail delivery vehicles, using a furniture shop as an example of how to to achieve significant return on investment. Of course the principles apply to commercial travellers.

Take the example of a retail merchandiser. There are hundreds of people travelling around the country daily visiting supermarkets, dairies, pharmacies, liquor stores and pretty much every type of retail store. A large percentage of these people have a mix of urban and rural stores in their sales territory that they visit on cycles. Some of them are regular cycles that they repeat periodically, others may be more ad hoc.

Typically retail merchandisers change jobs or territories fairly often, which means that they will not be familiar with where their clients are, or what the best order is to visit them in. They are often under a lot of pressure to make as many visits in a day or on a trip as possible.

Route2GO is the perfect tool for these people and their Managers. Just like the retail delivery people in the last blogs, there are many factors that determine Return On Investment.

The first and most obvious one is travel distance and time. The obvious one is to look at a day’s calls, calculating the best order to do the visits in, putting in the start location which could be the office, warehouse or even the person’s home and then the end location. If it is local and just a day trip, it is going to be pretty easy to calculate the order. This will provide travel time and distance. It could also include driving directions.

If it is a longer trip which includes overnight stays, you could look at the entire trip as if it was on one day to optimise the entire trip and then cut it into chunks for each day. One of the things that is often difficult for a traveller is estimating the travel times. Barring traffic accidents, congestion etc, we can provide a very good estimate of travel time. The traffic information itself we also provide by way of the Roadwatch and AA Maps websites. For $1.95 you can also subscribe to real time traffic alerts which you can receive by SMS or email for a 4-day trip at AA Traffic. This would give you some advance warning if there are any real issues. For example over the last couple of months, many highways including State Highway 1 have had road closures due to slips and floods. Being forewarned means that you can plan ahead.

Now that you know the travel time from one retailer to the next, you can start to do some planning. In merchandising their are obviously a variety of types of call. Some are easy to plan because it is simply shelf management and the merchandiser will know which products are ranged and have an idea of how much time a call will take. In some cases they don’t even need to see the manager. By doing a spreadsheet similar to the one in this blog, you can get a pretty good idea of what you can achieve.

Obviously where there is actual selling going on, or even getting orders signed, there can be extra delays, waiting to see the buyer and time on site will vary. This comes down to experience.

As per previous examples, the immediate tangible ROI is that Route2GO can tell you the best order to make the visits in and advise you of time and distance. This can save you tie and money and we invite you to contact us and send us a couple of trips in the order they were done in and we can optimise them and return them to you so you can see the order we would recommend and what the savings would be. There is no cost or obligation to you for this evaluation.

The next obvious benefit is establishing whether, with the time saved, you can either make more calls in a day or maximise the time spent on the calls to find ways to generate more revenue. Perhaps managing shelf facings, recommending new products or doing product knowledge training. We all know that if you don’t manage your shelf facings, they can shrink as your competitors products squeeze them out. Another issue is out of stocks. In today’s economy many retailers manage their inventory on a Just In Time basis. That means that if you do not meet your call cycle, you could have a situation where you are not only missing out of sales, but the out of stock situation could be introducing the retailers’ customers to your competitors alternatives.

Optimising and planning your trips, especially out of the city means that you can also do some advance planning, making appointments with buyers, with a reasonable degree of certainty as to when they can expect you. This is of course a professional way of doing business that will help your customer relationships and give you a competitive advantage. Lets face it, everyone is extra busy these days and the easier you are to do business with, the more likely you are to get an unfair share of the shelf space.

Probably the best part of Route2GO is that it is really easy to use. You don’t need a specialist, just the ability to create a list, with addresses of the customers you intend to visit. There is no up front cost, you pay as you go, which means that it pays for itself from day one. Why not give it a try for your next trip?

October 5, 2010 Posted by | AA Maps, AA Traffic, Delivery, driving, driving directions, Freight, Furniture Delivery, geosmart, location based services, map tools, maps, Marketing, new zealand, new zealand maps, petrol, Retail Profit, Return On Delivery, ROI, route optimisation, Route2GO, Sales, software, Uncategorized, Web Map, web maps | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Route Optimisation for Retail Deliveries Return On Investment Part Two

In my previous blog I talked about the immediate dollar benefits of reordering your retail furniture deliveries so that you would drive the least distance, saving both time and money. I gave examples of actual returns using GeoSmart’s Route2GO Lite application which is designed for anyone to use. In other words, you don’t need to be a computer geek to be able to use it. You need to understand your business.

I gave the example of getting up to 1200% ROI on a single run and this is genuinely achievable. But there are so many more benefits to be had. Lets have a look at some of these.

First if you combine the knowledge of how long it is going to take to get from the shop or warehouse to each customer, you will be able to work out how much work the vehicle can do in the trip or in a day. This has a number of benefits. Firstly it provides clarity for sales people and the sales counter of what deliveries can be achieved in a day. Imagine if a customer came into your shop wanting to buy a bedroom suite as they have guests coming in the weekend. If you can’t guarantee delivery, your store loses the sale. That being the case, the sales person loses commission, your competitor gets your sale and the would be customer will be telling people not to visit your store, even if you have great product for a great price.

In the optimised example below, we have identified not only the driving time for each job, but based on experience, how long the driver would typically be on site unloading the truck and carrying the product into the customer’s home or premises. This is of course very important when planning the entire day.

The next thing that is really important for consumers is some sort of certainty as to when the truck will arrive with their treasured new purchase. They want the experience to be gratifying and they don’t want to be waiting around in the morning for someone who isn’t going to arrive in the afternoon.

Now you can actually provide some clarity. you wouldn’t of course tell Mrs Smith that her new bed will arrive at 9:43 AM, but it would be fair to say it should arrive between 9:30 and 10:30 or perhaps 11AM allowing you to under promise and over deliver. She may have had to take time off from work to be home for the delivery. We always hear complaints about delivery people who don’t turn up when promised and the flush of excitement can quickly turn into anger and frustration.

Deliver as promised and you don’t just have a happy customer today, you have a customer advocate who will be back at your store next time she is open to buy furniture and will be recommending you to her friends. People don’t buy furniture every day, but they may do so dozens of times during the lifetime of your business. There are loads of stories showing that people favour service ahead of price, so these repeat customers will also possibly be very profitable customers who will haggle less and make a decision more quickly because they like and trust your business.

Of course the delivery people will be much happier too. Who wants to deliver to a customer who is telling them off for not arriving on time. They are just doing their job, probably what they have been told to do. They don’t need to have their day soured by unnecessarily unhappy customers.

Because we know the order we are going to do the deliveries in, we can also produce a document that tells us how to load the truck in reverse order.

Lets face it, furniture is heavy and it makes a lot of sense to handle each item once onto the truck and once getting it off. There’s no benefit in having to move things around every time the truck stops, its inefficient, hard work and wastes time.

A list like this makes life easy for the truck driver and also for the warehouse staff, ensuring that all items get on the truck in the correct order. All it actually is, is the delivery list in reverse order. That’s what this is ultimately what this is about. It’s not rocket science, yet we do need a computer to work out the optimisation because the driver doesn’t know every one way street, no right turn, median strips where the truck can’t do a U-turn.

So now we have paid a few dollars to use this application on the web. We can see that we have enough resource to do some more deliveries if we get some more sales, which will inspire confidence in the sales staff. You get happy loyal customers who will come back and spend more with you and tell their friends to do the same. You can provide a better service than your competitors and your staff will be happy in their work knowing that their day will be less complicated and they will have happy customers.

The best part is you don’t have to take our word for it. Give us a few of your old runs in the order that you did them in and we will optimise them for you for free to prove our point. No cost, no risk, no obligation. You have nothing to lose and everything to gain. Why not contact us now?

October 1, 2010 Posted by | Delivery, driving, Freight, Furniture Delivery, geosmart, location based services, map tools, maps, Marketing, new zealand, Retail Profit, Return On Delivery, ROI, route optimisation, Route2GO, Sales, Uncategorized | , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Retail Delivery Route Optimisation Savings: Return On Investment Part One

In my last blog I looked at the example of a furniture store using Route2GO Lite to optimise a day’s deliveries. This time we are going to look at the payback, or as I like to call it WIIFM, What’s In It For Me.

The first thing to look at with any business investment is what you are trying to achieve. One furniture retailer we are talking to, told us that they currently achieve an average of 8 deliveries per truck per day and would like to achieve 10 per day. That’s great because it is easily measurable. Start with a goal in mind, but there is of course much more and I’m going to look at two levels of Return On Investment (ROI). They are tangible and intangible.In this blog I will focus on the tangible, but as you will read in the next one, intangible is equally as important if not more so. Bookmark or subscribe to this blog and come back to find out why.

Tangible

First you have your fixed overheads as far as deliveries go. The first one is your vehicle. It is difficult to get specific vehicle running costs for commercial vehicles. As it was explained to me, when you buy a car, they come off the production line in 10’s of thousand identical vehicles. In theory they should have the same lifetime costs. When you buy a truck or van, you will have a choice of gearbox, and everything that goes on the chassis. For example you could have a metal truck with a luton over the cab, it could be a flatbed, it could have cloth sides. It may have low gearing because it is designed to carry heavy loads etc.  This means that there is no list available that will tell you cost per km for commercial vehicles. I managed to get hold of a document that says that a new 3001 cc diesel car running 14,000km a year has an average cost of 98.4 cents per km over a 5 year life span. Obviously commercial vehicles will drive far more than 14,000km a year and will have great costs.

The best thing you can do is ask your accountant, they will be able to work it out very quickly. I suspect at best you’ll get no change from $1.30 per km.

Let’s back track for a second. What is route optimisation again? It is a tool which looks at all the stops you want to make on a journey and calculating the sequence that you should do them in, in order to drive the least distance in the shortest time.

Why use GeoSmart’s Route2GO and not leave it up to the driver? Because we have a full turn restriction dataset for routing. That means we take into consideration a variety of factors including main roads vs. minor roads (designed for faster traffic flow), one-way roads, no right turns, implicit turn restrictions where you may be able to legally turn but a large vehicle couldn’t safely complete the manoeuvre, roads with median strips where you can’t do a U-turn etc.

Proof? Don’t take my word for it. Give me some run sheets of completed days trips in the order they were done and we will process them and show you the difference. We did this recently for a firm with half a dozen routes. Half of them returned modest results, but the other half generated some significant savings. Consider that if you could cut as little as 20km off a day’s deliveries for one vehicle at $1.30 per km, that’s a saving of $26. Do that every day over a year and you have saved almost $10,000! Of course petrol and diesel prices aren’t coming down any time soon!

But wait there’s more: What about labour costs? Your truck or van doesn’t drive itself. It has at least one, or in the case of bulky or heavy items such as furniture two people on board who have a cost. What do those people cost you per hour? No I don’t mean what do you pay them. Employing staff includes all sorts of things. Perhaps office space, special clothing, phone, desk, mobile, Taxes, ACC Levies, training, holidays, insurance, management and of course all the ancillary costs of doing business, accounts, kitchen facilities, tea and coffee, bathrooms etc. I think you’re getting the picture.

Whatever way you measure the cost of your staff, they key is productivity and in the area of productivity, the simplest way of looking at it to start with from an ROI perspective is, if you can increase their productivity without increasing your overheads, you are making more money right? Let’s say you could have your driver be more productive by half an hour per working day. From memory, we work around 222 days a year after taking off weekends, public and annual holidays. Half an hour a day increase in productivity is almost 3 weeks over a year. I’m not going to guess that cost, but your accountant can tell you what that represents.

These are only two tangible ROI Factors, but they on their own already produce an impressive result.

What does it cost? What’s the catch. I’m glad you asked that question.

The great thing with Route2GO Lite is that it is a web application. You don’t buy it, you don’t pay a monthly fee, you only pay for what you use. When you are not using it, you pay nothing.It is volume based and the more you use it, the cheaper it is per use, but even at the lowest entry level it is very economic.

Route optimisation comes with 2 components. The first part is what we call geocoding. This is where we get the geographic coordinates of the address. That could be the driveway of a home, or it could be somewhere inside a complex, such as a school or a business park. The dearest this gets is 12.5 cents per address. You only do this the first time for each address, so if you have regular customers, this is a once of cost.

The second part is the route optimisation. You tell us the starting location and optionally the end location and our application then looks at every possible combination of the route many times until it is satisfied it has the best combination. This starts at 50 cents per location.

So let’s look at a hypothetical example. We looked at a typical customer trip in the furniture delivery example. We saved a vehicle with 2 staff 20km at a total of $26 savings on a standard trip.  Lets say we also saved $40 in wages. We now have $66 in savings. The cost for Route2GO Lite was 8 geo-codes at 12.5 cents = $1 plus optimising a journey with 8 stops at 50 cents each = $4. So total cost to save $66 was $5. As I mentioned, there are no additional costs, no set up costs, no monthly license fees, its pay as you go.

But wait, there’s more ROI, plus you aren’t going to dock these guys half an hour in pay, you want them to do 2 more deliveries. Well now you have time to do that, so you can increase their productivity. You probably charge per delivery, but your fixed overheads aren’t going to change much, so you will save even more.

If you found this interesting, please bookmark this page or subscribe to this blog, because there is much more coming. The ROI on this page equals more than 1200% return, but the intangible benefits also make very interesting and exciting reading, so please come back to find out how this works. Also if you know anyone in the retail industry that does deliveries, why not email them a link to this page and share the knowledge.

If you want to give Route2GO a try and get us to compare a few of your routes for free with no obligation, contact us.

September 28, 2010 Posted by | Delivery, driving, Freight, Furniture Delivery, geosmart, GIS, location based services, map tools, Marketing, new zealand, new zealand maps, Return On Delivery, route optimisation, Route2GO, Sales, software, Uncategorized | , , , , , , , , , , , , , , , , , , , | Leave a comment

Bartercard is on our Map

Our latest SmartFIND client is Bartercard, who have a new website called Bartercard Maps launched this month.  This is an awesome tool for Bartercard members to find others to trade with on the basis of location.

We have already experienced its value in planning for our Bizzone Expo trips coming up in Wellington and Christchurch. We were able to go onto the Bartercard Maps website and find accommodation close to the exhibition venues, which we could pay for using Bartercard Dollars. The key difference to the traditional Bartercard book and their traditional online directories, is that you can now search for services specifically based on location.

Are you planning on visiting one of the Bizzone Expos? If you are, we would like to give you a free ticket, valued at $20 to whichever one is nearest to you.  All you need to do is to subscribe to our newsletter and the next newsletter will contain a link so that you can print off a free ticket before you go.

While the printed directories are very useful for getting more in-depth information about member companies and what they offer, often when you need a service, the book might not be handy. If you want to use trades people, purchase goods or services, a key element in your decision making is often about proximity. The closer they are to you, the easier it is going to be to do business with them, whether they come to you, or you go to them. If you are away from your office and you want a service handy to where you are, all you need is your Bartercard Account details and a browser.

Speaking from direct experience, this will generate more business for Bartercard members. Normally we would have simply searched for the nearest accommodation to the venue, or gone back to previous places we had stayed. We would not have been staying at the venues we selected if it wasn’t for the new New Zealand Bartercard Maps website.

If you are not a Bartercard member, you will not be able to drill down into this site, but it has some great features. You can search by Business Name, Keyword, category or industry and location, the latter 2 using an Auto-completer (searches the database as you key in the search word/s to help you find exactly what you want without you having complete the entry and avoiding errors).  You also have the option to use the SmartFIND map tools to pan or zoom the map to a location and have it limit the search to the section of map you are currently viewing.

Another useful tool is the ability to go back to Points of Interest (i.e. Bartercard Members) that you have recently looked at within the session. You can also save particular locations as favourites, which are saved to your profile. So for example, I have saved the accommodation providers I have selected for our upcoming trips.

This is a great example of combining location based services with a directory based business, which will generate more revenue for the members using GeoSmart SmartFIND Webmap technology. We are delighted to have Bartercard as a client and as a new showcase site for our services. Above all we are delighted to have another opportunity to show that web based mapping sites will provide a Return On Investment for our clients.

May 12, 2010 Posted by | Auckland, geosmart, GIS, lbs, location based services, map tools, maps, Marketing, new zealand, new zealand maps, proximity based marketing, Sales, Uncategorized, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Proximity Based Marketing and LBS is a Growth Opportunity

I’ve mentioned in previous blogs that traditional forms of Advertising are shrinking. There are many statistics backing this up. There are many statistics backing this up and in Asia Pacific, Carat, for example have forecast a 5.8% decline in ad spend for this year. Obviously the economy is a factor in this result, but it also signals a change in advertising behaviour as people are paying less attention to traditional forms of advertising. Many people now have products such as MySky and Tivo is almost here. These products make it very simple for people to avoid watching TVC’s because the can fast forward their recorded TV programmes. TVNZ announced that they were laying off 90 people as a consequence of a $25 million reduction in advertising revenue. The same applies with radio where many people are now opting for their iPods to listen to their favourite music instead of tuning in and being forced to listen to radio ads.

In my opinion, this doesn’t mean that people want to avoid advertising, specials and promotions altogether. They want them to be more relevant. ZenithOptimedia have forecast far greater drops in Ad expenditure, 11% drop in magazines, 10% in radio, 5.5 in TV, but around a 10% increase in Internet Advertising. So traditional forms of advertising decline, but Internet advertising is on the rise.

Why would that be? People are using the Internet far more these days, which takes them away from traditional media, but the key element to me is relevance. In the World Wide Web, it is far easier to ensure that advertising is relevant to the search or type of site that people are visiting. It also offers a great opportunity for call to action with Click Through, which is of course where Google makes the bulk of its income.

The ability to have people opt in to various services that are relevant to their interests and needs, their current time and place means that the offers will be welcomed and will have a far greater sales conversion rate than with traditional means of advertising and promotion. This is where the opportunity arises with Location Based Services (LBS) and Proximity Based Marketing.

The issue isn’t that people hate ads, specials, good deals and information. The relevance needs to be around space and time. I would welcome a Speight’s Mates Happy Hour electronic coupon, when I am walking past a bar, with a 2 for 1 offer on a Friday evening after work. But I probably wouldn’t even see a printed coupon in a magazine.

I’m sure tourists would take advantage of a special offer to a half price jet boat ride when they are on holiday in Queenstown, when they are within a kilometre of the boat on a sunny morning, than if they read an ad in the plane on their way to New Zealand. The tour operator gets a full boat and all the passengers have more fun. It’s timely, its based on their immediate location and its relevant to their current situation.

Many people think that the technology isn’t ready, but according to a story in ITWire, compound growth of GPS in mobile phones is over 49% and one of the major drivers in the proliferation of SmartPhones. According to Mobile Marketing Magazine, despite the economy, the penetration of SmartPhones grew by 33% to February this year. The traditional definition of a SmartPhone comes from Operating Systems such as Palm, Symbian and Windows Mobile, but if you look around today, many of the mobile apps in those phones such as Contacts, Diary, Email, Still and Video Camera are now standard in pretty much every phone and with the low cost of GPS, that is now being added at great speed.

With Software Development Kits being made freely available for the popular brands and models of phone, this is a perfect opportunity to become familiar with the web services and API’s available from GeoSmart and outlined in previous blogs. All you need is a good idea and a little market research. Of course GeoSmart can offer you a Developer Agreement which gives you free access to any tools you need during the development process.

You can find more information on the Developer Page at http://www.geosmart.co.nz or email info@geosmart.co.nz

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April 21, 2009 Posted by | Agencies, geosmart, GIS, gps, lbs, location based services, map tools, maps, Marketing, Mobile maps, new zealand, new zealand maps, proximity based marketing, Sales, satnav, Uncategorized, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

What does LBS have to do with advertising media?

The world of information technology and communications (ITC) is changing at a rapid pace and some of the changes have been subtle and unexpected. Some things take a long time for people to get their heads around, but sometimes they just start doing things and take them for granted. Social networking is a classic example that businesses are now trying to understand how they can get involved.

Technology is changing the way we live, the way we interact with each other and the way we interact with the businesses and services we enjoy.

Last week there was a news story, saying that TVNZ is planning to lay off 90 staff, as it moves to save $25 million. In it,  Chief Executive Rick Ellis was quted as saying that the layoffs represent approximately 25% of the costs reductions needed due to falling advertising revenue. I don’t recall who it was but someone recently was telling me that they never watch TV advertising but one evening he and his wife decided that the would watch the TVC’s. The next morning he asked his wife what brands were represented in the TVC’s they watched the previous night, she couldn’t name one.

People can avoid TV commercials by recording their programs with MySky and now of course Tivo has also launched in New Zealand. I don’t know if it works in New Zealand, but in the US I believe that you can program your Tivo to not even record advertisements at all as there is an encoded message that tells it when advertising starts and ends.

Around the world there are newspapers closing down, going out of business because not enough people are buyig them any more, which means they can’t sell enough advertising to keep them going and people are choosing other media such as the Internet to find their news.

Huge numbers of people are favouring their iPods and other MP3 players instead of listening to the radio. People are buying less music CD’s because they have access to other media such as iTunes, YouTube and MySpace to mention a few legal ways they can access their entertainment.

Then of course there is mobile and virtually everyone has a mobile phone and sometimes two.  The days that your phone was only for voice and SMS are long gone. Today on our mobiles we can check email, take photos and post them onto websites such as Facebook, read or watch the news, Instant Message, check our social networking applications and more.

Then there is the location component. A couple of weeks ago I was able to show my location using Google Lattitude on my mobile to my friends. I was able to monitor my pace and calorie burn on Allsport GPS and post photos that I took on my phone straight to my Facebook page while I was running.

So back to the original topic, what does all that have to do with advertising media. Simple really. If your phone knows where you are and you opt in to services that tell you about things you want to know about, relative to where you are and when you are there, you can be offered all sorts of relevant goods and services that you will want to know about and take advantage of.

This afternoon I was talking to a partner about their participation in a 100km bike race. The bike race would have been sponsored by industry leaders including bike manufacturers, sports drink and supplement brands and other partners. The event and the activity in general takes place on the road, so is very location oriented. If you register for the event, a brand would be very keen to make offers to you. Because you are in the event, they can market very specifically and know that their likely response rate is going to be very high. A LBS application could involve maps and directions, but also relevant Points of Interest. Prior to and after the event they could include where to buy a new bike or bike accessories, or where to get a pre-race service or gear check.

It could include where to stay, where to get healthy food, where to train, where to buy your drinks and supplements, a message as you come near a cycle clothing shop of promotional deals, with an electronic coupon displayed on your mobile phone. It could show you where you can get refreshments on the way or even where to find a public toilet. It can show you where the start points are and a route for the supporters to be able to go from point to point without running into the cyclists. It could help companies or supporters get to a cyclist who has gear damage. Prior to or after the event it could even provide a social network to help you find training partners in different parts of the country, for example if you are away on a business trip and have your bike with you. Sponsorship, brand association can be tied to actual sales promotions, which are triggered by people who have opted in to a service who are close to the store or place where a service is available.

These sorts of service would be opt-in, which means that people sign up to a service and specify when and under what conditions they may be contacted on their mobile. Because the service offers benefits to the user and the user is specifically interested in the sport and active at the time, there is a far greater likely response rate than traditional scattergun media advertising which is traditonally very costly.

GeoSmart of course is able to display maps, provide turn by turn driving directions from anywhere to anywhere in New Zealand. It has a Points of Interest Web Service which can help geocode and display relevant locations like shops, cafes, public toilets etc and the Proximity Tool can assist in identifying relationships between POI which could for example be an alert when a cycle rider is within a kilometer of a bike shop using GPS or other tools to identify the location of the cyclist. This could be combined with a social network, registration for an event, an interest group or perhaps an exclusive service for an event, or the customers of a particular brand, for example you can use this service for free, but only after purchasing an Avanti bike.

If you are interested in concepts like this, please subscribe to this blog, and feel free to leave comments or questions. if you want to talk to someone about any of these ideas, please email info@geosmart.co.nz.

March 31, 2009 Posted by | Agencies, awards, cartography, driving, driving directions, geosmart, gps, lbs, location innovation awards, maps, Marketing, new zealand, proximity based marketing, Sales, satnav, social networking, Uncategorized, web maps | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment