Artificial Intelligence, aka AI, is looming over all forms of creative data, insights, and even data analytics. Using technology to interpret visitor behavior is important, but relying on it solely can have negative impacts.
After using the Placer.ai platform, Cass discovered the platform presents an illusion of quality. She reports that the data can be skewed and used against industries by elected officials to manipulate, persuade, and entice residents and business owners.
It is important to realize that Placer.ai is another tool in the ‘tool box’. It provides geo-targeted, cellular data, while providing look-back information and not real-time data. Simply put, Placer.ai does not encompass all visitor data. It is not a wholesome approach to understanding true market trends, and rather provides ‘some insight’ to visitor behavior.
Target Misalignment
To explain why Placer.ai is one sample source, Cass presented a Case Study regarding a targeted mail promotion. When preparing to mail visitor guides to a targeted distribution audience of “Segment G” from the Experian Mosaic data and overlaid the data with the Placer.ai data, it simply underlined misalignment.
Segment G was identified as the ‘Potential Market’ when looking at Placer.ai data for State and Nationwide market segments. This was true of Segment G across the four municipalities as well when observing potential versus captured data. The Placer.ai data then automated top performing zipcodes to align with the Segment G audience for a targeted mailing. Using the data, and targeting the audience we could study a specific audience to see if there is a recorded lift in the audience as a result of the marketing.
However, this all began to unravel when the identified target audience of Segment G and zipcodes were shared with the mail house to create a ‘Segmented Audience Mailing’ of 8,000.
The data did not align. The provided zipcodes from Placer.ai recommended to reach Segment G amounted to a couple hundred addresses. Ultimately the mail house and Cass would review neighboring areas and there were several back and forth revisions to locate additional areas and meet the qualifying demographics.
This small mailing of 8,000 resulted in hours of setup to complete, realigned the targeted zipcode, and required an addition of 17 zipcodes! Finally, the metrics aligned and tracking would now include 18 areas for review within with Placer.ai FY22.
Feedback
After the mailing was complete, Cass inquired with Placer.ai about the discrepancy. Many excuses were given and ultimately the ‘blame’ was placed on the mail house as Placer.ai stated that USPS has an outdated system and that the Placer.ai metrics were far more reliable.
“USPS has an outdated system”
– Placer.ai
This was a bizarre response to the Tourism Board as well as Cass as the data resulted in a staggering difference. The Board discussed how addresses are registered to all legal documents, mortgages, leases, rentals, auto purchases, and more… And, for the USPS to face the blame for an outdated system seemed like a far cry from the truth of the matter.
Results
The targeted mailing was finalized and mailed to the refined 8,000 ‘Segmented Audience Target’ in early-January. The audience primarily consisted of single, non-married, residents age 31-35 years, with income over $83K individual or $114K per household, and up to two people per residence, with a focus on condominiums and apartment housing.
Through the end 2022 there were 134,534 visits to the geo-fenced areas of the County from the’ Segmented Audience’ as reported by Placer.ai. This included the updated zipcodes to reflect towns such as Arvada, Aurora, Commerce City, Castle Rock, Littleton, Denver, Golden, and Morrison.
When extracting the targeted zipcode visits, there were just under 62,000, just below half of the annual visitation to the County.
Understanding the Metrics
To understand the data, Cass would like to revisit 2019 survey data as it relates to visitation within local municipalities. This data was collected in-person with a third party, and over several weeks at a variety of locations. Regardless, out of all surveys collected, 15% recalled seeing advertising that prompted their visit. Guests also stated that total spend was approximately $50 per day.
Using this visitor intercept data, Cass created a sample hypothesis for the short ROI of the 2022 Visitor Guide mailing of 14,000 copies. She calculated 15% of the return visitation from targeted zipcodes and multiplied the 15% by $50 per visitor.
Looking at the 2022 data from the four municipalities, she was able to see a total of 61,805 visits:
Idaho Springs: 32,265 visits
Empire: 3,640 visits
Georgetown: 22,687 visits
Silver Plume: 3,213 visits
Extracting 15% (9,270)
Creating an Impact Hypothesis:
9,270 visitors at $50 per day average spend = $463,500 Economic Benefit
The results, a worthwhile project that boosts the local economy!
Just as this hypothesis is an evaluation, so is the data we are able to access in Placer.ai.
The data is simply another way to examine visitor behavior, to identify trends, and to create strategic marketing plans. Just as the data can be used for benefit, it can also be misinterpreted and result in havoc. This is true as the data results to specific industries, visitor journey, and even leakage reports.
Keep Your Eyes Open
Placer.ai is not the only data software available. There are other platforms and consortiums available. Some offer specific data sets as it applies to Destination Marketing Organizations. Some better align key metrics and visitor demographics.
Remember, data has the ability to go above and beyond the result of niche market studies and accumulative theories. Data can bend the limitation of wifi technology and geolocation audiences. Data has the ability to provide solid, transactional evidence, define priority markets, and identify value, spending trends, and meaningful ROI. But data is only one ingredient in defining marketing strategy, return, and audience.
While technology continues to advance, Placer.ai is a good tool. Just be sure to keep your eyes open and realize that Placer.ai is just like other data sets.
No select data source is completely wholesome, and data should never be used against tourism agencies or business owners, especially by elected officials.
This article is written as a personal perspective by Cassandra Patton and is not affiliated directly with Placer.ai or Experian Mosaic, or any other affiliate mentioned above. This is simply an informative perspective and is not intended to affirm or deny the use of Placer.ai or Experian Mosaic, or any other data AI platform.
