What is the definition of georeferencing?

Georeferencing is the process of matching any visual or spatial dataset—such as satellite photos, aerial images, maps, or architectural plans—to a precise, real-world geographic location using coordinates. Essentially, it links data to an exact point on the Earth’s surface, turning a simple picture into an accurate, data-linked asset.

How does georeferencing benefit businesses like e-commerce and logistics?

For businesses, georeferencing is crucial for creating accurate location intelligence. It enables optimized deliveries by confirming a precise delivery point, reduces failed shipments, and allows for more efficient route planning. It also improves customer verification (KYC compliance), smooths internal operations by cleaning CRM data, and supports better strategic decisions based on accurate geographic analysis.

What are the key steps involved in the technical process of georeferencing?

The automated process, typically done by a GIS or mapping software, involves four steps: 1) Selecting a map or image and a Spatial Reference System (SRS), like WGS84 (used by GPS); 2) Identifying control points, which are known, real-world reference points (like street intersections) present in the image; 3) Applying the geographic coordinates to these control points to align the image; and 4) Reviewing the alignment accuracy using metrics like Root Mean Square Error (RMSE).

What is the relationship between Georeferencing, Geocoding, and Address Verification?

Georeferencing is the broad concept of assigning coordinates to any spatial data. Geocoding is a specific type of georeferencing that applies to address data, converting a human-readable address (like '123 Main St') into precise latitude and longitude coordinates. Address Verification solutions use geocoding to enrich addresses, providing an extra layer of confidence that an address is not only real but has a precise spatial location.

How does Loqate integrate georeferencing into its address products?

Loqate uses geocoding as an automatic feature within its address verification workflows. When an address is verified via the Loqate API, it can simultaneously return the precise latitude and longitude coordinates of that address. This feature does not require specialized GIS knowledge and can also be used for reverse geocoding—converting GPS coordinates back into a human-readable street address for tracking or delivery confirmation.

Glossary

Georeferencing

A complete guide to georeferencing

Google Earth is an incredible tool for exploring the world, but visual snapshots alone can’t answer one critical question: where on Earth are we?

For most people, this may not matter much, but for businesses like yours, precise, data-linked locations are crucial for operations, logistics, and informed decision-making.

Thankfully, and as it often does, technology comes to the rescue. Thanks to georeferencing, the process of linking images and data to precise locations on the planet, you can turn a simple view from above into an exact point on the map.

It’s what allows researchers, planners, and explorers alike to match every pixel to its real-world position. And it’s also what allows businesses to prevent missed deliveries and the cascade of operational challenges that can follow, turning location data into a reliable, actionable asset.

Definition of georeferencing

Georeferencing is the process of matching location data to real-world geographic coordinates. Location data includes images, satellite photos, aerial photos (from drones), maps, or even architectural plans - essentially any visual dataset that can be accurately placed at a specific point on the Earth’s surface.

Many industries rely on georeferenced data for planning and decision-making. Some of the most obvious sectors include urban planning and engineering, where professionals plan infrastructure projects and must ensure that the location of their building lines up with real-world coordinates, as well as government agencies responsible for land surveying, census mapping, and environmental monitoring.

But outside of these critical scenarios, there’s a whole realm of use cases for which georeferencing is incredibly beneficial. Businesses that rely on sending items to customers, such as online retailers or utility companies, must verify the accuracy of their address data to avoid missed or incorrect deliveries.

In short, here are some key use cases for georeferenced data:

Logistics and couriers: ensuring parcels and shipments reach their intended destinations efficiently.

Telecoms and utilities: managing infrastructure and service points across vast areas.

Emergency services and public sector: planning routes, allocating resources, and mapping assets.

Retail and real estate: analyzing locations for new stores, branches, or property development.

Environmental and scientific research: tracking changes, mapping sites, and analysing spatial data.

Ecommerce: verifying addresses to reduce failed deliveries and improve customer experience.

How georeferencing software works: Step-by-Step process

Georeferencing is an automated process usually done by a Geographic Information System (GIS) or mapping software.

It’s important to note that most companies don’t buy standalone georeferencing software. Instead, they use platforms that embed georeferencing capabilities, such as address-verification solutions, location intelligence tools, or mapping APIs. These platforms are typically user-friendly and don’t require specialist GIS knowledge.

For example, Loqate can automatically do georeferencing as part of its address verification process, so you don’t actually have to follow any of these steps. Still, understanding the process can be helpful:

Step 1 - Selecting the map or image and reference system

First, you need the map or image you want to georeference, and then, you need a Spatial Reference System (SRS) that defines how locations are measured and represented on Earth.

There are a few different types of systems available, but Geographic Coordinate Systems (GCS) are the most widely used globally, as they serve as the standard for GPS, Google Maps, and most mapping applications.

GCS uses latitude and longitude to locate points on a spherical model of the Earth, and they are commonly based on datums, which define the size and shape of the Earth for mapping purposes. There are also a few different datums available, but, again, only a few are actually used. These are two of the most popular:

WGS84 (World Geodetic System 1984) - the standard for GPS and Google Earth.

NAD83 (North American Datum 1983) - widely used in North America.

Step 2 - Identifying control points

Once you load the image and confirm a reference system, the software identifies control points - known reference points that are present in both the image and a real-world map (like street intersections or landmarks).

Step 3- Applying coordinates

The software then assigns coordinates to each control point and transforms the image to align it with real-world coordinates. Simples!

Step 4 - Reviewing

Lastly, the software assesses how accurately the image matches the coordinates, often using Root Mean Square Error (RMSE) as a measure of alignment accuracy. If the margin of error is too high, the software may prompt adjustments or automatically redo the process.

What are the benefits of georeferenced data?

The advantages of georeferenced data vary by industry and use case, but several benefits are shared across sectors:

1. Optimized deliveries

Address verification solutions, such as Loqate, utilize georeferencing to enhance their accuracy, providing an extra layer of certainty that your customer address data is accurate and valid. Accurate address data helps you avoid delayed or missed deliveries and the consequences that follow: extra costs, refunds, resending, wasted resources, and loss of customer trust.

Additionally, it enhances reporting and accountability: companies can track exactly where packages were delivered, simplifying follow-ups, audits, and customer service inquiries. And it’s not just about avoiding risk. By using georeferenced data, businesses can plan more efficient routes, saving time, fuel, and costs while improving service reliability.

2.Smoother internal operations

By verifying that every customer location is real and accurately formatted within a spatial reference system, businesses can dramatically reduce errors in CRM databases, order management, and customer communications.

This means fewer time-consuming corrections, less risk of failed shipments due to incorrect information, and more reliable reporting. Teams can spend less time fixing mistakes and more time focusing on delivering seamless customer experiences, improving overall operational productivity and customer satisfaction.

3. Accurate customer verification

In the first half of 2025, financial institutions in the US reported a 168% spike in detected money laundering accounts. For financial institutions like banks, insurance companies, and lending firms, accurate customer verification is paramount to mitigate the risk of fraudulent activity.

It’s not just the right thing to protect customers and the firm’s own reputation, but a legal requirement under Know Your Customer (KYC) rules. Leveraging verified, georeferenced address data can add an extra layer of confidence, helping firms stay compliant and detect fraudulent activity more effectively.

4. Better Analysis and Decision-Making

Georeferenced address data gives organizations location intelligence: a clear, accurate view of where their customers, clients, or stakeholders are located. By leveraging georeferenced data, organizations make smarter operational and strategic decisions, reduce wasted resources, and improve service reliability.

For example, utilities companies can plan service coverage and maintenance schedules more efficiently, insurance firms can assess regional risk exposure and allocate resources for claims handling, and banks can identify patterns in client distribution to optimize branch networks or marketing efforts.

How Loqate uses georeferencing to improve location accuracy

Loqate is a complete address verification software solution you can embed directly into your systems via an API. It can standardize and validate addresses in real-time (as users type) or correct existing datasets (or both, of course, depending on your needs). As a truly global solution, it covers over 240 countries and territories worldwide, including remote locations.

But more than offering worldwide coverage, it’s incredibly accurate and reliable, thanks to advanced features like geocoding. Geocoding can be considered a type of georeferencing that applies specifically to address data (not images or maps). As part of our offering, you can embed this feature into our validation workflows, and automatically get the latitude and longitude of each customer address.

All you need to do is specify geocoding as part of your API request - no additional GIS tools or technical expertise are required. You can even opt for reverse geocoding, where Loqate automatically converts geographic coordinates into a human-readable address. This can be useful, for example, to map device locations to known addresses or confirm whether a delivery actually occurred using GPS data.

Gain complete confidence in your address data, power smoother operations, and make smarter decisions, with Loqate Verify - grab a 45-day free trial and give us a test run today!

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