The coronavirus pandemic presents both a tremendous challenge and a significant opportunity for retailers. Consumer behavior changed dramatically in 2020 and continues to change as the pandemic evolves. As workplaces go remote, consumer traveling patterns are undergoing a fundamental shift. Retailers can take advantage of this opportunity by acting quickly to retain their existing customers and to reach the newcomers. Good location data is critical for this opportunity.
But what’s considered ‘good’ data?
With the explosion of the Internet of Things (IoT) devices, social media platforms, and other digital services, the total amount of data being produced on a daily basis is nearly infinite. Given the explosion of data, it’s even more important for organizations to maintain an effective data management protocol to ensure data integrity: data that is reliable, accurate, and can be trusted.
Data integrity is built on four key elements: enterprise-wide data integration, data quality, location intelligence, and data enrichment. By investing in these four core areas, businesses can be assured trust in the data they’re using for critical business decisions.
While all four elements are equally important when it comes to the full picture of data integrity, retailers can and should place significant focus on location intelligence in this rapidly shifting environment.
Also read: The value of location intelligence for retailers
Knowing your audience through location intelligence
Location intelligence can help retailers determine not only where to open a new location, but what products they should carry at that location as well.
For example, by utilizing location data such as dynamic map visualizations, a retailer can map out traffic patterns, demographic data, competitive pressures, and other geographic data to better inform site selection for a new store. Through this information, a retailer can weed out locations that don’t see a high volume of foot traffic or alternatively hone in on one with more accessible parking options. Either way, location intelligence gives a retailer the confidence in selecting the most optimal site for their new store, something that is crucial to its success as brick-and-mortar stores struggle to recover from the pandemic.
Once a site is selected, retailers can use data to make sure they’re stocking their shelves with products best suited to their clientele. For example, a major chain can use location intelligence related to weather patterns to anticipate when a major winter storm will hit a part of the country and send an additional inventory of road salt, shovels, sleds, etc. to that location. This will not only result in a boost in sales for those store locations as shoppers rush out to stock up on those items, but will build trust in the community that the retailer is the go-to resource for items of the sort. Again, something that is critical for a store’s success as many turn to online buying for quickly needed items.
Location intelligence can also be used outside of weather-related events. The correct data can inform a retailer of who makes up their community. Is it primarily stay-at-home moms looking for children’s items? College kids looking for discounts on school supplies? Perhaps a community is largely from a specific ethnic group and is shopping for food products? Stores, even big-box retailers, aren’t a one-size-fits-all and must tailor their focus to what the community they support needs. The right data can empower retailers to make those decisions and better serve their shoppers, and in turn drive loyalty and sales.
Also read: Relevance of Point of Interest data in businesses today
Reaching your audience through location data
When it comes to driving sales for a business, targeted advertising serves as an effective marketing strategy for those within the retail sector, and location intelligence can add another layer to the targeting.
Take for example a fitness equipment store located near a popular gym. The gym can use location data to target those frequenting the gym with a promo code for their store. This targets: 1) people who are already coming geographically near your store location via the gym and 2) people who are likely in the market for fitness gear. The proximity and accessibility factor is key here as brick-and-mortar stores compete with the convenience of online delivery.
Geographically targeted advertising can also be seen through the use of digital billboards located along major highways. Let’s say there’s a popular sporting event taking place one weekend, a local sports store could purchase a digital display ad promoting discounted fan gear in the days leading up to the event. By doing so, the retailer would be able to not only increase the odds of foot traffic to its storefront but garner more brand recognition as well and potentially drive last-minute sales.
It’s clear that location intelligence, and data as a whole, can help inform better business decisions for retailers. While digitization, the ongoing surge in e-commerce, and demand for better customer experiences will challenge retailers for years to come, location data will continue to serve as an important tool to help retailers reach their audiences whether it be online or in-person.
