What3words's Case Study

Introduction

It's not every day that we encounter a company that completely redefines something as fundamental as locational data. What3words, a London-based private technology company founded in 2013, has done just that. By carving the world into a grid of 3m x 3m squares, each designated with a unique combination of three words, What3words has provided precise, simplified addressing that outperforms traditional methods. But what makes What3words so special? Let's delve into their story, business strategy, and impact.

The Simplicity of Precision

What3words's genius lies in its simplicity. Traditional addresses can be confusing, inconsistent, and often inaccurate, especially in rural or developing areas. GPS coordinates, while precise, are cumbersome and difficult for humans to remember. What3words bridges this gap elegantly. Imagine trying to find 'Penny.Lane.Forever' instead of fumbling through a lengthy string of numbers. This three-word addressing system not only simplifies locational data but also enhances accessibility and reduces errors. According to the company, traditional addressing systems leave 75% of the world poorly addressed or entirely unaddressed (source: What3words). This includes major metropolitan areas where deliveries can go awry due to ambiguities in locating specific entry points. What3words offers a functional and emotional value by providing a sense of belonging and safety through precise, easy-to-remember addresses.

Innovative Business Model

At the heart of What3words’s success is a robust and versatile business model. Our approach focuses on licensing the proprietary three-word algorithm to a broad array of industries and organizations. Key revenue comes from substantial licensing agreements with corporations, automotive companies, emergency services, and government agencies. The integration mechanisms—APIs and SDKs—are designed to fit seamlessly into existing systems. This versatility is invaluable. For example, Mercedes-Benz incorporated What3words into its in-car navigation system, making it simpler for drivers to reach their destinations accurately (source: Mercedes-Benz press release, 2020). Moreover, What3words employs a tiered service model, catering to individual consumers through premium in-app services and subscriptions. For large enterprises, customized solutions are available at scaled pricing, ensuring we meet varying needs effectively.

Market Penetration and Partnerships

Our business thrives on strategic partnerships and market penetration. Collaborations with big names in mapping—Google Maps, Apple Maps, and Here Technologies—demonstrate the broad adaptability of What3words. Each of these integrations enhances the functionality of existing digital maps while offering an easy-to-use alternative for precision. Emergency services also benefit significantly from What3words. For example, the UK's emergency services use our solution to accurately locate and respond to callers without formal addresses. The month following the implementation of our technology saw a reduction in response times by 22%, showcasing both functional and emotional value (source: UK Emergency Services Annual Report, 2022).

Research and Innovation

Our commitment to continuous innovation ensures the value proposition remains strong. Constantly expanding our system's coverage and enhancing the accuracy of our three-word database keeps our technology relevant. We allocate significant resources to R&D, ensuring that new applications for the technology are continually explored. Whether it’s drone deliveries in remote locations or optimizing logistics for global supply chains, the potential applications are boundless. For instance, a partnership with UK-based logistics company DPD resulted in a 20% reduction in failed delivery attempts, showcasing the practical benefits and ROI of adopting What3words (source: DPD Annual Report, 2021).

Customer Relationships and Community Engagement

One cannot underestimate the importance of strong customer relationships. What3words invests in personalized support, comprehensive user tutorials, and a vibrant community forum. Engaging with our user base through social media and newsletters also provides real-time feedback that helps us keep our technology user-centric. In-app notifications and live chat support create a seamless customer experience, making our users—from individual app users to B2B clients—feel supported and heard. Building a community around a technology that simplifies lives not only helps us grow but also fosters a sense of belonging among users.

Economic and Social Impact

The social impact of What3words cannot be overstated. From making remote locations more accessible to providing a reliable addressing system for underdeveloped areas, our technology plays a crucial role in economic and social inclusion. In regions where 75% of the land lacks a formal addressing system, What3words can provide a significant boost in operational efficiency and quality of life (source: United Nations, 2019). Furthermore, the emotional impact is profound. Granting individuals in slums or remote areas a simple, effective address provides a sense of identity and belonging that traditional methods have failed to deliver. The ripple effect extends to emergency response, travel, e-commerce, and daily logistics, simplifying and organizing previously fragmented processes.

Conclusion

What3words provides a compelling case study of how innovative thinking and strategic business execution can disrupt industries and improve lives. Through a simple yet profoundly effective three-word addressing system, we address complex problems in locational data, ensuring precision, accessibility, and efficiency across a multitude of sectors. The unwavering commitment to R&D, strategic partnerships, customer engagement, and social impact positions What3words as a trailblazer set to make the world a more connected and efficient place. As we continue to innovate, the path ahead for What3words is promising, and the broader implications of our technology are poised to leave a lasting impact on global communications and logistics. Through embracing simplicity and precision, we look forward to a more connected world where navigating life is as easy as three simple words.