While location intelligence is a powerful predictive analysis tool for all kinds of industries, it’s particularly useful in the retail industry. Thanks to the evolving digital technology and remote devices, retailers can easily access and use location-based data to assess consumer behavior and market insights and enhance brand loyalty. Location intelligence is especially beneficial for self-service retail stores.
A case study developed by PREDIK Data-Driven explored the correlation between foot traffic analytics and store locations. The study concluded that incorporating location-based data helps self-service retail stores obtain a more nuanced perspective of their niche markets, helping them develop expansion strategies accordingly. Whether you run a self-service chain or follow a different retail model, you need location intelligence for your business. Here’s why.
What is Location Intelligence?
Before we get into the benefits of location intelligence, let’s define what we mean by the term. Location intelligence is a technique used to gather accurate and contextual information about specific areas. It uses customized big data-based research tools to extract and analyze geospatial data, helping businesses gauge geological, historical, and meteorological information about targeted locations.
For the retail industry, location intelligence is a way to collect crucial data related to customer demographics, transaction history, profitability, and other information required for thorough geographic analysis. So, how can location intelligence help your business? Here are a few ways you can benefit from geomarketing analytics.
It Improves Retail Site Selection
One of the biggest advantages of using location intelligence is that it helps retailers choose the right areas for expanding their business. The information uncovered via location-based data helps retailers determine if opening a store in a specific area or neighborhood would be successful in the long run. They can also use the data gathered to assess existing and potential competitor threats, evolving market trends and preferences, and possible markets in surrounding areas.
Additionally, advanced location intelligence technology allows for dynamic map visualizations. This gives retailers greater insights into demographic groups and populations in the targeted and surrounding areas. As a result, retailers can conduct detailed traffic analytics without spending several hours or days at physical locations, streamlining the data collection and analytics processes.
For instance, a retailer can zoom in on a map visualization to determine traffic patterns for a particular area. They can also assess how an existing business offering similar services is performing in that area, helping them decide if opening a new store in the neighborhood is a good idea or not.
It Allows You to Better Understand Customer Demographics & Behaviors
Retail businesses need to have a sound grasp of the geographic locations they operate, including customer demographics. Location intelligence helps them acquire and analyze customer data, ensuring the sustainability of their store locations. It helps them curate customized strategies for each location and also gives them insight into customer trends and preferences for different locations.
For instance, you may observe that holiday sales are more successful at certain locations than others. Alternately, location intelligence can give you insight into what products are in demand at each location. The behavioral insights gained via location intelligence allow businesses to better understand their customer demographics and develop strategies accordingly.
Through location intelligence, retailers can create actionable insights about their business operations. The enormous amount of customer data obtained is ideal for developing strategies for improved revenue growth, customer experience, and operational efficiency.
It Facilitates Targeted Advertising
Finally, location intelligence helps retailers conduct targeted advertising to boost sales and profits. Location technology allows retailers to acquire information about smartphone users’ offline activities at their physical locations to develop marketing campaigns tailored to specific audiences. This allows them to combine data regarding their consumers’ online and offline behavior and develop marketing strategies and ads through geotargeting.
For instance, a pet supply store can use location-based data to curate ads for selected consumers who visit stores in the area. They can offer promotions and discounts to residents or visitors of a particular neighborhood, delivering targeted messages to drive sales and revenue.
Similarly, a retail business can use location-based data to assess the number of potential target audience members who frequently drive past a certain billboard. Based on this information, they can then display ads for their products and services on that billboard.
How Can PREDIK Data-Driven Help Retailers?
PREDIK Data-Driven provides advanced location analytics software and predictive analytics to businesses in the US, serving the retail industry. It helps retailers identify areas of interest and visualize their stores’ mobility patterns and customer demographics to assist them with their marketing, operational, and expansion strategies.
The company uses customized big data-based research tools, including geomarketing analytics software, supply chain mapping software, customer analytics software, predictive analytics tools, and market intelligence software to provide retailers with a vast range of data science and location-based solutions. Additionally, PREDIK Data-Driven also provides its services to the food and beverage, automotive, healthcare, and banking & finance industries.
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The author of this guest post is an experienced data scientist associated with PREDIK Data-Driven who frequently writes about industry trends and market assessments for the retail, automotive, and healthcare sectors.
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