Why Is Location Data Crucial For The Automotive Industry?

While most of the industries have taken a swift shift towards the digital world, the automotive industry is one of the few industries where in-person engagement still plays a crucial role in customer satisfaction. 

Here, it is not the game of choosing a vehicle from an array of options, adding it to the cart, and making the purchase. No, consumers still want to interact with dealers in-person, test drive novelties, compare them with other vehicles and then make the decision to purchase.

Marketers in this sector are relentlessly trying to bring in new marketing strategies and that’s where location data comes to provide insights on consumer behavior, market trends, and competitor atmosphere. 

In a study, it has been noted that 61% of automotive marketers are highly likely to leverage location data to assess customer behavior at dealerships.

In this blog, we explore how location technology aids the automotive industry in customer attraction and retention and, while also optimizing their presence with a vast network of dealership centers.

Improving Businesses Through Location Data

The convergence of the physical and virtual world is not a new concept anymore. Retail, healthcare, food & dining, and many other industries have ensured to document the physical changes of the real world in a complex digital economy.

But, how can the automotive industry and other players in it make use of geospatial data to sell their products and services? Let’s read to know more. 

Using location analytics, large automobile companies can optimize their presence with a wide network of dealerships. Based on the demographic and location trends, these companies can position dealership stores, facilities, and service centers.

With the right mix of marketing strategies, the automotive industry can leverage the full potential of location data and target customers effectively.

While automakers can benefit from location data, other players in the automotive industry can also improve businesses through location-based technologies. For example,

  • Repair shops can access user location via sensors and systems in the vehicle to diagnose a defect, plan, and arrange repair and maintenance events. 
  • IT & telecom companies can offer in-vehicle data services and furthermore track the location of these vehicles for marketing services. 
  • Investment companies need access to location-based analytics to determine the most profitable location for financing.
  • Vehicle insurance companies can leverage navigational data and provide insurance plans and packages based on individual and vehicle usage metrics.
  • Manufactures and development firms build innovative and most-selling products based on location-intelligence solutions.

The automotive industry involves many phases such as – production, warehousing, supply chain, marketing, and many more. Thus, suppliers can leverage location data and improve inventory management. 

With sensors fitted to the components of high-end cars, GPS location, and navigation-related information, automotive manufacturers can pre-empt the requirements of the customers.

For example, if a component has been failing in its functioning and needs to be replaced, manufacturers are easily notified by these sensors and location data. And, a brand new component is already shipped and made available to the nearest dealership location. However, securing customer information and using it responsibly must be the primary objective of any automakers.

With 5M+ location data across 11 industries, helps businesses to take spatially-aware decisions for improved growth.


According to a report, global consumers spend around 4.5 hours on smartphones on a daily basis. Furthermore, 2 out of 3 users use smartphones to search a location, get directions or follow the recommendations received based on their current location.

It is estimated that by 2021, location-based sales shall spike up to $1.4 trillion. Therefore, using geo-targeting practices, customer engagement and interaction can improve when a customer comes in close proximity to a store/dealership.

With GPS, geofence, or beacons, we can determine when the customer is around the dealer store. Using this information, automotive marketers can create relevant and contextualized ads to notify customers about the store, offers, schemes, etc. 

For example, if a customer searched for various electronic vehicles and their charging points around his/her location, an automaker can trigger an ad that offers in-person consultation and support for hybrid and EVs.

Using smartphone and location data, an automaker or a dealer can draw insights on the brands customer searched for, which dealer he/she visited last around the store, and the transportation challenges that the customer faces which can be taken as an opportunity for the dealer. 

Mobile devices and installed apps in it can tell a lot about a customer. Here’s another example. By tracking the location details of the customer via various apps downloaded by him/her, distance traveled by her regularly, analyzing the availability of other transportation modes in his/her location, an automotive business owner can suggest the customer to opt for electrical and hybrid vehicles.

These personalized suggestions along with an invite to connect to the nearest dealership for a test drive are some of the marketing methods that are location data-driven.

Using location analytics, footfall, repeat visits, dwell time, customer profile, demographic data, distance traveled around a store, etc. – all of this could be obtained and used for business insights.

Automotive repair and service centers can send ads to people who’ve visited them before, or are nearby the location, or if someone is looking for a service. 

Competitive Analysis

With location data, an automaker or a dealer can uncover the positioning of the competitor, their clientele, their business location, footfall, etc. to understand the factors that didn’t work well for them and take it as an opportunity. 

Geofences can also be created around a local dealer store and determine the customers who visited the competitor store. This information will help in understanding the footfall around the competitor’s store and devise a strategy that is unique and customer-luring.

Customer loyalty programs, promotions, offers, and incentives can be devised based on the data collected to fulfill customers’ needs and wants. This type of real-time location service (RTLS) provides a breakthrough to know the targeted audience better and build direct relationships with them.


Embracing location data helps auto marketers to bridge the gap between offline and online operations. It not only helps in understanding the consumer and competitor behavior but also assists in streamlining different phases of the automotive manufacturing process.

The protocols and procedures in the production and post-production phases are better coordinated to benefit the dealers and end-users.

At, location datasets are 95% accurate and updated regularly. Reach your customers where they are through our vast POI database.

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