The retail industry is constantly expanding. Total retail sales in the United States are expected to reach 5.94 trillion dollars in 2024, according to Statista, up from roughly 5.47 trillion dollars in 2019. As we reach 2022, location intelligence appears to be indispensable, necessitating its usage in every business, particularly retail.
Over 90% of businesses believe that location information is extremely important. Retail location information serves as a catalyst for a more integrated multi-channel shopping experience. Because of how easy consumers rely on mobile purchasing, mobile location has pushed the applicability for Retail, making it easier for merchants to connect location data with advertising campaigns to show shoppers with practical techniques at the correct moment.
You would like to know who your customers are, what they buy, how often they buy, and where they’re from as a retailer. You need Location Intelligence since more than 80% of your data includes a geographical component (LI). You will be able to map your data based on its location quality.
Here’s when retail location data helps a lot!
Defining Location Intelligence
This is a tool for detecting information from geographical data to solve the issues in a range of businesses. Location intelligence platforms are generally based on geographic information system (GIS) approaches and competency and operational enterprise solutions. Businesses can use the technologies to capture critical sets of data for in-depth geographic analysis, such as Location information, transaction history, and point-of-sale data, as well as other business activities.
The core of location analytics is accurate situational information on people’s whereabouts and movements. From the standpoint of the retail industry, it provides demographic information on neighboring firms, including competitors. LI indicates who resides in a particular area, how much profit they raise, and what kind of residences they have. It combines demographic data with the data to provide a lot of information about the customer base.
Individual and behavioral aspects can also be understood using location intelligence, which integrates psychographic and demographic data. LI can help retailers connect with customers and prospects. It builds a key interaction between a customer who visits your website and a customer who enters your physical store in the context of multichannel shopping.
How Retailers Use Location Intelligence?
1. Determine the Decision of Retailer
Traditional prediction analyses, such as census data, have been employed by retailers in site selection tactics for numerous years. In the past, this may have worked successfully. Nonetheless, given the quickly changing consumer preferences, particularly in the preceding year as a result of the pandemic, it is critical to employ current and regularly updated geographical streams of data. When a shop wants to expand to a new location, there are various ways to leverage location data to improve retail outlet location statistics and impact site selection. Here are a few examples:
- Dynamic Map Representations Can Be Used To Depict The Population And Demographic Characteristics.
- By Overlaying Competitor Sites On Top Of A Project Location, You May Get A Better Understanding Of The Total Impact.
- You Can Do Traffic Analysis On A Particular City To Have A Better Knowledge Of The Neighborhood’s Intricate Traffic Conditions.
2.Gain a Better Understanding of Your Customers’ Characteristics.
Because a single market, or the geographical region whereby a retail firm acquires its clients, is crucial to a retail store’s long-term viability, your retail manager has to make sure that you open outlets in places where your target customers live or frequent.
You can get real-time information and behavioral observations on people who live and travel near-certain retail locations thanks to geolocation technology and data. You’ll discover more about the demographic of your target market’s clients. You also can observe where customers purchase or spend their free time.
Using Data Analytics to have a better understanding of your client base will enable you to give more relevant services and goods that will have a direct influence on your leads. Let’s say that you know that 70% of the population in a given location are under the age of 35.
3. Discover More About Customer Attitudes
You may examine customer behavior and obtain a better knowledge of future customers by using location-based analytics. You could even use it to monitor human actions in specific areas to see whether there is sufficient foot traffic to justify building a store there.
Reduced barriers, convenience, exceptional service, and a greater amount of personalization throughout buying process describe a seamless customer experience. Retailers must produce meaningful knowledge from the big data they have regarding their operations and consumption patterns to fulfill these objectives. When geolocation analytics is combined with the immense quantities of operational and sharing economy platforms that most retailers have, they may be able to attain previously imagined levels of efficiency, profit growth, strategic edge, and customer experience.
Salesforce mapping, for example, is a location-based CRM that links mobile employees to their roles, leading to increased revenue and better customer service. This solution gives concerned members of the team a real-time view of vital customer information based on their location, letting them spend less time preparing and more time developing meaningful, long-term relationships with customers.