Location Intelligence: A must-have Business Tool for Smart Retailers
With the fight for consumers’ dollars getting fiercer by the year, more and more retailers are looking at location data and analytics as transformational business tools that allow them to put the customer at the center of all strategic decisions. In an omnichannel world – where retailers own a wealth of business data and are expected to deliver previously-unthinkable levels of customer experience – a location intelligence platform acts as an aggregator of disparate data streams.
Discerning crucial market trends and gaining a deep understanding of the retail environment becomes much easier when data is plotted on smart maps. Instead of wading through thousands of spreadsheets and looking for hidden patterns between countless columns and statistical charts, retailers can visualize the desired information neatly on maps, down to the postal code or single-store level.
According to a report by market research and consulting firm MarketsandMarkets, the global location analytics market is expected to grow from $10.6 billion in 2019 to $22.8 billion by 2024. In this growth, North America is projected to account for the highest market share, with Canada and the United States being the two major contributors to the overall location analytics market evolution during the forecast period.
Below, we have discussed some of the many ways through which location intelligence empowers smart retailers to innovate, improve their services, boost their competitive edge, and more
Every retailer desires a solid understanding of who is frequenting the stores, demographic profiles of the customers, the distances they are traveling from, etc. Location intelligence tools churn multiple information sets, such as income levels, postal codes, and census data, to provide retailers a sense of consumers’ foot traffic patterns and loyalty levels. Retailers can also use location analytics to create profiles for top customers and understand which demographics are driving maximum revenue. These customer insights can then be used to fuel additional growth.
Marketing Program Development
Ensuring a return on investment (ROI) is a critical factor for any retail marketing program. One of the easiest ways to reduce the cost of marketing, increase the accuracy of retail analytics, and maximize ROI is to use clean and accurate data. Location technology leaders like DMTI Spatial automatically consolidate, cleanse, validate, and geocode address databases to ensure this. Moreover, each record is assigned a Unique Address Identifier (UAID™) for accurate data visualization. With such a precise view of the business, retailers can create highly-targeted marketing campaigns and identify opportunities to upsell and cross-sell.
Further, marketers can use location intelligence tools to create a map of their digital and online engagements to understand where their brand is resonating with customers and how digital engagement is driving in-store footfall.
Retail Site Selection
There are several factors that need to be considered while selecting a new store location. What is the purchasing power of the local population? What kind of demographics are the nearby points of interest (POI) attracting? What is the level of competition in the neighborhood? Is the location easily accessible by customers? Is hassle-free parking available near the store? And so on… A robust location intelligence platform will take multiple variables like these into account using precise, continually updated data and zero down on the perfect location which would optimize the demographics of the surrounding area, minimize the risk of cannibalization, and provide a high digital presence.
Layering multiple information streams onto maps allows retailers to gain a fresh market perspective. Analyzing customer behavior based on buying habits and visualizing trends on a map makes the process of evaluating market expansion both scientific and simpler. Retailers can measure the performance of each postal code, outline underperforming regions, identify high-potential zones, reassign territories, or adjust the allocation of resources – all based on hard data. By assigning postal code boundary data to specific user behaviors like marketing coupon redemption, retailers can also discern how to better refine messaging and reduce customer acquisition costs.
Customer Experience Enhancement
Providing an impeccable and unforgettable customer experience has become essential for any retailer in today’s competitive world. Location intelligence tools allow retailers to meet the ever-increasing expectations of customers by unraveling key insights from consumer behaviors. Further, geo-targeted advertising allows retailers to offer a high level of personalization to both existing and potential customers. By combining a prospect’s real-time location data with contextual data and strategic offers and messaging, retailers can easily convert the intent to purchase into actual sales. Such positive brand experiences and customer-focused initiatives go a long way to build customer loyalty as well.
Truly, it doesn’t matter whether you are a franchise food retailer looking for the perfect neighborhood to open your next delivery outlet or a family-owned business trying to break into a new territory, location intelligence is an invaluable tool that can help you unlock a whole new level of insight from your existing operational and customer data.
When it comes to making informed decisions, improving marketing initiatives, or maintaining a competitive edge in the market, it becomes imperative for any retailer to know who their customers are, understand their aspirations, and deliver what they want, when they want it. Location intelligence promises to do all that and more.
Want to know how your retail organization can leverage the power of location intelligence to tackle some of the biggest business challenges of 2019? Contact us today!