Location Intelligence Maturity Model

In part two of this blog, we define the last three levels of the Maturity Model and explain how to progress from one level to the next.

Click here to read Part One of the Location Intelligence Maturity Model blog

Level 3: Premium

When your organization begins to proactively seek out alternate data sources, you have reached the Premium level of the Location Intelligence maturity model. At this level, the business is beginning to acknowledge and embrace the transformational possibilities of robust Location Intelligence. They have:

  • Increased complexity and dependence on location-based models
  • The need for advanced geocoding, high-precision (to the rooftop or parcel), not interpolated
  • Found that matching records with internal and external systems using a location-based matching reference produces more efficient transactions

At this point, it is clear to the organization that the more data you have to work with, the more useful and productive the insights you glean will be for the business. You are building, in effect, a Location Intelligence data warehouse that will contain enough information to provide answers to questions you may not have thought of yet.

“In 2017, postal codes show the greatest year-over-year increase and moved ahead of province/state and country to become the most required level of location detail. Latitude/longitude and custom geographies saw the next most significant gains, indicating increasing support for organization-specific granular location requirements.”
– DAS Location Intelligence Market Study 2017

For example, imagine how helpful it would be for a retailer to be able to determine the geographic areas that are relevant to a particular store’s traffic. If you knew that there were obstacles, such as a river with limited bridge access, you could make that data part of your traffic analysis, which, in turn, would make it possible to target customers for that store more precisely.

A visualization tool enables you to see the boundaries of postal codes. With this additional information, you will be able to reveal patterns in your data that were not apparent before. The topographic information that is displayed, such as parks, railways, and water, help you understand the physical size of your markets and the relationships between customers and stores. Visualization adds depth to your data analysis, for more informed decision-making.

As you recall from Level 1, Good Enough, your in-house lists are valuable data assets. They will increase in value when you apply a standard, location-based matching reference. Since you already cleanse data, now it’s time to automate that process, add geocodes, and assign a matching reference, a unique address identifier, to every address in your database. This last step allows you to match the same address across your data siloes and communicate across internal and partner networks with increased speed and accuracy. At this level, you are thinking about ways to use Location Intelligence to increase your business.

Level 4: Aggregation

When you reach Level 4, you have become a data-savvy organization. At this point, you seek out additional ways to enhance your current data because you know that the more information you have, the fuller your data warehouse will be, and the harder your data will work for your business. Aggregation is about linking data. It means that you are:

  • Merging disparate data sources for a more complex and complete analysis
  • Creating new, derivative, datasets

In the previous level, you assigned a unique address identifier (or UAID) to each address in your database. This set the groundwork for you to enable powerful data sharing and to overlay data relevant to a precise location. For example, you can understand concentration risk, exposure to perils such as flooding and fire, validate proximity to emergency services, mitigate fraud, analyze claims patterns, and make better-informed business decisions, faster.

Additionally, once coded with unique location identifiers, datasets become marketable to other companies looking to append an organization’s collected information to their own. At this level, you have created a monetization strategy for your data and are now producing income!

Level 5: Real Time

Level 5 is the holy grail of Location Intelligence, the ability to process data in real time. The faster you apply Location Intelligence to your processes and systems, the better the bottom line. In this level, you will:

  • Add real-time addresses and location data processing to business workflows
  • Make decisions in real time based on results of web-enabled data services and scorecards

At this level, the uniquely identified location data is used to enhance real-time decision-making. For instance, marketers track the real-time locations of mobile phone users to send push notifications with advertisements or coupons to potential customers when they are near a retail store.

Real-time Location Intelligence is an important addition for process improvement. Gone are the days when you would have to halt a process to manually pursue the answer to a question. For instance, if a mortgage company discovers that a home’s value doesn’t compare to other homes in the area, they access the relevant intelligence in real time and the exception is handled on the fly. The ability to apply immediate analysis to a business situation saves time and mitigates risk.


Now you begin to see how Location Intelligence transforms your data from a simple address into a record full of valuable information. All you need to do is to build on the data you have. Today your organization’s Location Intelligence may be at Level 1, where it’s Good Enough, but you don’t have to stay there. When you increase the maturity level of your data Location Intelligence, you gain the ability to improve your organization’s operational efficiency, ensure that your company outperforms consumers’ expectations, and assist with your digital transformation initiatives

Consider the financial services company that implemented real-time analytics and added it to its underwriting decision process. They improved their response time by 45%. Or the mortgage insurer that automated associating risk based on neighborhoods, and added that data to its decision-making process, in real time. Their decisions were better informed, made faster, and in some cases, enabled them to outstrip their peers to become market leaders.

The greater your Location Intelligence maturity, the more actionable insights you have to work with, so no matter where you are on the maturity model, it’s time to move up.

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