How Heat Maps Can Help Your Business
The purpose of a heat map is to measure the density of data in a particular area. To differentiate between different density levels, heat maps use different colors. In general, red and orange are used for higher densities and blue for lower densities.
While other maps can measure data density, heat maps are a neater way to do it. For example, a pin map displays density by identifying each data point with a marker. However, these maps can become messy and difficult to analyze. In contrast, a heat map makes it easy to identify areas where particular information is more prevalent to represent density with colors. For example, if you wanted to see where your sales are coming from, you would start by mapping all of your sales pitches. Then, by heatmaping that data, you’ll be able to quickly identify where sales are highest and where they are lowest. You can then use this information to make significant changes to your sales strategy.
Types of heat maps
There are three main types of heat maps. These are:
This type of heat map represents data points as color-coded circles with a specific radius of influence. Typically, the denser areas of these circles will be colored red, and then turn blue or green as the data disperses. However, most heat maps will allow you to choose the colors according to your preferences.
Based on area
If you want to compare data between one or more different geographic areas, you will use an area-based heat map. Geographic areas can be defined by zip codes, counties, or states. These areas are then colored according to the amount of data in them. For example, if a large number of customers between the ages of 30 and 50 live in the state of Illinois, it will be colored red. However, if only a few customers between the ages of 30 and 50 lived in the state of Georgia, Georgia would be colored blue. Hence, you will get a quick overview of the location of these types of customers in the United States.
Based on points
Often compared to point density maps, point-based heat maps use points to represent data. The larger the group of points, the higher the data density. The more sparse the cluster, the lower the data density.
How to use heat maps for business
Heat maps can be useful for your business in a number of ways. For example, as mentioned earlier, heat mapping is a great asset in planning your sales strategy. This is because heat maps demonstrate the strength of the presence of data in some areas and its absence in others. As a result, a business can gain valuable information.
A heat mapping tool measures the performance of a company based on several key indicators. These include:
- Service calls
Taking revenue as an example, heat maps tell a business which areas are making the most money. Businesses can decide which areas need more attention and which areas are already well served using this information. This can be particularly useful when designing a targeted marketing campaign. For example, for areas that generate a lot of revenue, the company can create advertisements that encourage repeat purchases. However, they may need ads that encourage new customers to trust their product or service for low income areas.
Another way to use heat maps is to use them to manage vendor distribution or delivery driver management. For example, by tracing your sales reps or delivery drivers and their locations, you can see which territories have a lot of staff and which are lacking. As a result, you can fill in the gaps and move people to better serve your customers.
Finally, heat mapping is a great research tool. Heat maps can measure a wide range of demographic data, including:
Using this data, you can determine where your target audience is, which allows you to plan strategic marketing campaigns and choose sites for new business locations.
Companies for which heat maps are particularly well suited
While virtually any business can take advantage of a heat map to analyze their data, there are a few types of businesses for which heat maps are particularly well suited. These are:
- Health / medical professions
- Delivery companies
- Service companies
Main benefits of using heat maps
Heat maps are good for businesses for a number of reasons, but let’s take a closer look at the benefits they offer.
Heat maps measure performance
To improve your business, it’s essential that you know which parts of your business are performing well and which are not. Using a heat map, you can determine where you are hitting your targets and where you fall behind. With this information, you can compare business locations and territories to determine where you’re performing best and which areas need work.
Heat maps help you understand the market
Developing a successful marketing strategy requires that you have a good understanding of the people you are targeting. Therefore, a heat map is a great way to learn more about where your target audience is based on demographic information. You will also learn more about who your customers are and how you can sell them. Additionally, a heat map can show you potential new areas of expansion.
Heat maps help uncover hidden patterns
Business data contains a lot of valuable information, but some of it can go unnoticed if not represented in the right way. For example, it can be difficult to decipher geographic patterns of shopping habits by examining the numbers on a spreadsheet. On the other hand, if you visualize your data using a heat map, you can compare the buying habits of one domain versus other domains.