A heatmap is a representation of a geographical area with color codes showing the incidence of certain types of data that you might find more than interesting when strategizing for your business’s development. They’re necessary to help us to reach conclusions based on volumes of data we would otherwise find very hard to process. And, needless to say, you’ll need mapping software to create them.
Choose Your Data Sets
There are many ways to use heat maps. You might want to know the area where most of your customers live, the places where people found your online calls to action most interesting, or the zones where your biggest-spending clients are likeliest to be found. Of course, the areas where data is less dense may be of interest too. Where are the people who simply don’t seem to be interested in your business? Finding out why could be an enlightening and potentially lucrative exercise.
Zoom In, Zoom Out: Big Picture, Detailed View
Literally being able to see the “big picture” is interesting enough, but your ability to analyze it in greater detail could be even more enlightening. When using heat maps, you can select the radius you’d like to examine and this could give you better insights into the behavior and interests of your customer-base. We might think that we know our customers, but do we really? You might find some surprises along the way!
It’s also worth noting that a heat map can help you to identify underserved areas as well as those where you’re approaching saturation. That applies to physical stores as well as online businesses, and it could point towards a growth strategy with potential for good returns on any investment you may choose to make.
Serving Existing Clients Even Better
Allocating personnel to equal-sized geographical areas almost never works. Some areas may be hives of activity with your personnel struggling to stay in touch with and serve customers. Others may be all-but unproductive with your personnel investment costing you more than it earns. It makes sense to concentrate service staff where they are most needed, and your heat map could give you compelling reasons to redeploy staff based on demand.
Clues for New Product and Market Development
Spotting underperforming areas could give you clues that influence product development. For example, if data indicates that people in less economically affluent areas don’t want your existing products, you could research the feasibility of launching an entry-level version. If sales in a particular area are low for the simple reason that you haven’t really targeted an area before, it could indicate a new market to strategize for your existing products.
Tailoring Marketing Efforts Per Location
The adage that says people are the same everywhere is only partly true. The environments in which we live do influence our preferences and expectations. Customers in Texas, for example, may prioritize different things to customers in New York, especially in relation to your products. Identifying promising areas to target allows you to tailor messages based on the things that matter to prospective clients in that area. Chatting to your customers about the New York giants to boost engagement on social media? The Dallas Cowboys would resonate better with your audience in Texas!
The Bottom Line
Just having data isn’t good enough. It’s what you do with it that matters. Heatmaps translate data into a format that allows you to analyze your business’s performance at a glance. Use them to seek areas for improvement, focus, or expansion. Use your resources where they’ll make the most difference to your business’s growth and keep running the numbers to monitor your progress.
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