What is Location Data, and How Can Businesses Use It?

Imagine you’re planning to open a new store, launch a marketing campaign, or improve your delivery services. What if you could know exactly where your customers are, how they move around, and what locations would bring the best returns for your business? That’s the power of location data.
Location data helps businesses make smarter decisions by revealing patterns in people’s movement, behaviors, and preferences. From choosing the perfect store location to sending targeted ads at just the right moment, companies use location data to grow, engage customers, and stay ahead of the competition.
In this article, we’ll break down what location data is, how businesses can use it, and how to get the right data for success.

What is Location Data?
Location data, or positional data, describes information about the geographic positions of an object or person. Location data retains information about the "where" of an element on the Earth. Think about your smartphone. Have you ever used Google Maps to find a restaurant or received a notification about a sale when you walked past a store? That’s location data at work.
Location data is information about where something—or someone—is. It’s made up of geographic coordinates (latitude and longitude) and can include other details like altitude, movement patterns, and behaviors. Most of our digital activities today leave a location footprint. Our phones, apps, and GPS devices constantly gather data about our whereabouts. Businesses use this data to understand where their customers are, how they move, and what locations offer the best opportunities.

How Businesses Use Location Data

• Smarter Business Expansion: Expanding a business isn’t just about having money—it’s about picking the right location. The best spot can mean higher profits, while the wrong one can lead to losses. With location data, businesses can analyze foot traffic, population density, and customer movement patterns to find the best areas to open new stores or offices. For example, a retail chain planning a new branch can check migration trends and seasonal customer flows to see if a location will attract enough buyers. When combined with company sales data, this insight helps businesses make smart, data-driven investment choices.

• Targeted Marketing That Works: Marketing is most effective when it reaches the right people at the right time. Location data helps businesses do just that. By leveraging location intelligence, brands can send personalized ads based on a customer’s whereabouts. For example, a coffee shop can offer discounts to people nearby during the morning rush hour, increasing the likelihood of attracting customers. Geofencing takes this a step further by setting up virtual boundaries—when customers enter a designated area, they receive notifications about special deals, such as a limited-time sale or a restaurant promotion. Additionally, businesses can create localized offers, tailoring promotions to specific regions to better connect with local audiences. By using location data effectively, businesses can avoid wasting money on generic ads and instead craft targeted campaigns that resonate with potential customers, driving higher engagement and sales.

• Finding the Best Store or Office Locations: Choosing the perfect place to open or relocate a store isn’t guesswork anymore—it’s a science powered by location data. Businesses can spot areas with high customer demand, ensuring they establish their presence where potential buyers are most active. They can also analyze competitor locations, helping them position themselves strategically to gain a competitive edge. By examining past sales data and purchasing trends, companies can predict which locations will be the most profitable. Through a deep understanding of population trends and consumer behavior, businesses can make informed decisions on where to invest and when to expand, maximizing their chances of success.

• Faster, More Efficient Deliveries: For businesses that rely on deliveries—whether it's an e-commerce store or a logistics company—location data can be a game-changer. It enables optimized routes allowing businesses to find the fastest and most cost-effective delivery paths. By analyzing customer locations companies can strategically place warehouses in key areas, reducing delivery times and improving efficiency. Real-time tracking futher enhances operations by monitoring delivery vehicles and adjusting routes based on traffic conditions. For example, an online store can leverage traffic and location data to fine-tune delivery schedules, ensuring customers receive their orders faster while also cutting fuel costs.

How can businesses get location data?
The primary formula for getting location data is knowing your objective for the location data. When the objective is defined, the business is a step closer to getting the appropriate location data. If the required location data intersects largely with what the business has in its client database, proper analytics can be launched to derive the layer of interest. For external data, businesses can leverage location data collection companies such as Milsat.
Businesses have to be conscious of data quality, integration capabilities and available technology when using a data acquisition company. To check the important boxes, data collection companies like Milsat are advised, as against data vendors that may not have the relevant data the business requires. Quality location data is important as it forms the basis of many actions. Bad data can cause a lot of loss in terms of time and finances. Getting the right hands is crucial to acquiring the right data.

With a range of modern technologies, Milsat is helping businesses acquire location data with special attributes that are crucial to growth. Learn more about how Milsat can help your business collect location data.

Contact us at salest@milsat.tech or Talk to an expert at +2348103369346