A heat map creates a geographical representation of information, highlighting the data’s density according to different colors or rubrics. These details can outline on a map key (the legend). Typically, the higher-density areas show warm colors like red, with lower-density regions highlighted as cooler colors. A heat map helps sales team representatives quickly understand key datasets and information, developing actionable insights after review.
What Can Heat Maps Tell Us?
There are a few different details a heat map can highlight for companies. The first is showcasing any clusters of customers, particularly as an overview. Various departments can visually see the customer dataset according to density, getting a complete overview of the marketplace. This may highlight any top-performing areas or sales regions that require additional support.
You’ll also be able to redefine distribution networks according to customer density. For example, knowing where to place each center to improve accessibility is paramount for future growth. Ideally, specific locations are accessible to as many customers as possible. Having a heat map will highlight whether new locations will service maximum levels or if a different site might perform better.
Finally, marketing departments can use heat mapping capabilities to identify targeted areas for advertising. If a local company is considering a new advertising campaign, identifying different areas that hold higher levels of customers should prove beneficial in successfully marketing products. This allows effective use of a budget and resources through careful planning and execution of the campaign.
Understanding the Heat Map Generator
If your company uses a third-party mapping software like Maptive, heat maps can be of significant value to your organization. The heat map organizes your data by activity levels, turning information tables into a visual component. It helps a company understand how the data is formulated geographically, according to a specific region, city, or other vital components.
The heat map helps businesses visually understand where dense customer sections are located while simultaneously highlighting top-performing sales representatives. In addition, the team can review variables across multiple ZIP codes, offering an easy-to-understand map of your current sales performance.
The Hot Spot Heat Map
One of the heat maps you can establish is the hot spot heat map. This option occurs when set boundaries or regions aren’t relevant to your organization. Hot spot heat maps are ideal when evaluating high and low activity areas or identifying where clusters are occurring. For example, a customer location map can identify different areas where customers reside, represented as warm colors for high density and cool colors for low density.
The Regional Heat Map
Regional heat maps are also known as choropleth maps. These maps use different shades or colors to represent other metrics within a map. For example, the color scale might indicate the sales volume for each state with different hues representing a value range. Regional heat maps might also compare numbers within a given boundary.
This representation can help you develop a big-picture overview for market performance, uncover sales patterns within a particular location (for example, specific product or service trends among specific customer demographics). Additionally, sales teams can identify high-and low-performing sales areas.
Analysis can also determine sudden habit or purchasing changes, whether once-reliable clients stop buying or services seem to dwindle among specific ZIP codes. Identifying areas needing further investigation can offer rebranding or new marketing approaches for these targeted areas, particularly with previous customers.
Finally, evaluation of competitors within your sales demographics can also integrate into heat maps. You’ll be able to review the influence of direct competitors on your company’s sales density.
How to Determine Which Heat Map to Use
Knowing which heat map to use depends on why you’d like to compare the data. The two main options for heat maps are the hot spot heat map and the regional heat map. Knowing when to use each variety can bring different results.
The regional heat map works well for anyone wanting to compare different areas with similar data. This might include a ZIP code analysis or statewide comparison. If you’re looking to evaluate the density in a specified area, the hot spot heat map is better suited.