Geocoding consists of identifying the geographic coordinates, longitude and latitude associated with a postal address.
Geographic coordinates allow each address to be located on a digital map via a Geographic Information System (GIS). Geocoding is one of the techniques of geolocation or georeferencing.
Once geocoded, it is possible to carry out several data processing operations, calculate distances, travel times between the customer and his place of purchase, automate interventions at points of contact with customers, prospects, individuals, business, etc.
One of the important advantages of geocoding is that it can be used to enrich the customer database. When using the latitude and longitude associated with the mailing address, the matching quality is significantly greater than that obtained using the postal code only. For example, in the case of a consumer, one can infer one's income, schooling, family profile, consumer expenditure with greater precision, etc.
Inverse geocoding is the opposite operation of finding the corresponding (or nearest) address to spatial coordinates. For more information, please visit: Wikipedia.