COVID-19 has really accelerated the adoption of alternative data (third party data), particularly with a geospatial component, in various industries. We have seen a lot of interest from financial services firms in acquiring such data — be it by economists looking at the big picture of economic activities across industries or private equity companies trying to analyze specific investments. Similarly, a lot has been happening in the e-commerce space. As more people are ordering things online, we have seen an increase in the need for industrial points of interest (POIs), like shipping warehouses or fulfilment centers. Delivery companies and even the brick and mortar stores are now looking for alternative data to meet their digital requirements and expectations. Alternative datasets are also helping us understand the larger economic impacts of the pandemic. Some of them, such as data on average spend, foot-traffic, and hours worked, are helping retailers redefine and optimize operations, or financial services firms manage their portfolios.
“The relevance of location data is only going to increase, especially in marketing and logistics, to re-adjust business operations.”
Insights for enrichment
There are two different ways in which companies across industries use geospatial data. On the one hand, there are companies that need geospatial data in day-to-day operations. For example, in the insurance industry, geospatial data is critical for determining if a certain property falls under a flood zone before drafting the insurance policy pertaining to it. On the other hand, there are companies that can operate without geospatial data but need geospatial insights to stay competitive. What the pandemic has brought to light is the increased need for data enrichment, or adding supplemental information to first-party data. For example, now more than ever before, the retail industry is enriching its existing data with alternative data, such as location information for a number of applications, including de-selection of non-performing sites and re-categorization of stores into fulfilment centers, etc. Post-Covid, the relevance of location data is only going to increase, especially in marketing, logistics, and operations, to re-adjust business operations and cater to society and the economy at large. Today, companies understand the need to bring alternative datasets together for gaining actionable insights.
Surge in anonymized mobile location data
Much of today’s location data is collected via mobile device activity. During the pandemic, governments collected mobile location data to track the spread of the virus and to monitor social distancing compliance. Retailers, on the other hand, used mobile location data to look at the sheer volumes and trends in buying behavior. The use of anonymized mobile location data increased manifold and this trend will continue.
