As retailers contend with increasingly complex consumer behaviours and intensifying market competition, one capability has proven transformational: geospatial intelligence. Extending beyond traditional location planning, this data-led approach enables retailers to pinpoint where their most valuable customers live, work, shop, and critically, where untapped opportunities remain.
In a digitally connected yet spatially fragmented landscape, the ability to make smarter, location-based decisions can deliver a decisive performance advantage. This was exemplified by IKEA Thailand, which leveraged Ikano Insight’s Area Prioritisation Engine, a sophisticated geospatial intelligence solution designed to help retailers maximise the return on marketing and sales investments.
Why geospatial intelligence matters in retail
IKEA Thailand’s experience reflects a broader industry trend. Retailers are increasingly deploying geospatial intelligence to:
- Enhance store performance through detailed analysis of catchment dynamics
- Refine local marketing by targeting audience clusters with high conversion potential
- Strengthen omnichannel strategies, from store placement to last-mile delivery
- Align inventory and merchandising with granular demand profiles
Success depends not only on knowing where customers are, but also identifying where high-value prospects could emerge. It marks a shift from broad segmentation to hyper-local targeting, enabling strategic decisions grounded in geographic and demographic precision.
The challenge
IKEA Thailand sought to address a fundamental commercial challenge: how to allocate marketing resources for maximum return without inefficiency or overspend. This required answers to three strategic questions:
- Where are the high-potential prospects not yet engaging with the brand?
- Who are existing customers, and what are their geographic concentrations?
- Which audience segments demonstrate high potential but remain unconverted?
Conventional demographic data and purchase histories were insufficient. A more advanced spatial understanding was required, one that could explain not only who and what, but also where and why.
The solution: Area Prioritisation Engine
To solve this challenge, IKEA Thailand adopted Ikano Insight’s proprietary Area Prioritisation Engine, a dedicated geospatial intelligence platform built specifically for the retail sector. The solution combined advanced modelling capabilities with a dynamic, self-service dashboard, enabling the IKEA team to identify and capitalise on high-potential geographic areas with unprecedented precision.
The implementation process comprised three key phases:
1. Data integration and enrichment
A broad array of third-party datasets were consolidated with IKEA owned data to profile all local areas across Thailand, including demographic indicators, purchasing power, mobility trends and competitor footprints.
2. Predictive modelling
Machine learning models clustered neighbourhoods by shared characteristics and forecasted the revenue potential of each. These clusters enabled IKEA to apply insights at scale while adopting a highly targeted approach.
3. Interactive visualisation
An intuitive dashboard empowers the team to interrogate model outputs, map high-value zones, and adapt their strategies dynamically in response to evolving insights.
This methodology introduces a new level of quantifiable accuracy. By identifying priority areas with the greatest commercial upside, the solution enables IKEA Thailand to streamline its focus and elevate marketing efficiency.
The results
The output of this initiative extends far beyond insight – it enables targeted marketing actions, within a strategic reallocation of investment for accelerated growth.
- THB 1.8 billion in untapped revenue potential was identified
- 1.5 million new potential customers were surfaced, aligned with IKEA’s target profile
- 60% of the total opportunity was concentrated in just 10 regional areas, and 96% falling within two specific customer clusters
- The number of active planning zones was reduced from 925 to 10, significantly simplifying execution
Armed with this intelligence, IKEA Thailand is able to direct marketing spend to the highest-yield locations, enhancing ROI and reducing inefficiencies across the campaign lifecycle.
This case study illustrates the strategic value of geospatial intelligence when delivered through a sector-specific solution such as the area prioritisation engine, enabling data-backed decision-making aligned to real-world retail performance.
IKEA Thailand is one of many organisations leveraging geospatial intelligence to refine strategy and unlock growth. Across categories, forward-thinking retailers are applying location data to deepen customer understanding, improve operational agility and enhance profitability.
Additional examples of retailers using geospatial intelligence
IKEA Thailand is one of many organisations leveraging geospatial intelligence to refine strategy and unlock growth. Across categories, forward-thinking retailers are applying location data to deepen customer understanding, improve operational agility and enhance profitability.
Written by Matt Craddock
Global Head of Data & Analytics
Skilled in data strategy and advanced analytics, Matt is passionate about unlocking the power of data to drive sustainable growth, combining global leadership with a sharp focus on impactful, data-driven decisions.
