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Retail Business Review | Tuesday, March 15, 2022
With an accountable demographic still preferring to shop at brick-and-mortar shops in this digital era, it is a perfect time for retailers to consider leveraging location intelligence to increase foot traffic. Here are specific methods to use location intelligence in the retail business.
Customer Insights: Retailers can get valuable customer insights by leveraging location intelligence by utilizing the technique of geo enrichment, in which customers’ residential address is converted into crucial insights.
Now, retailers can use modern geographic information systems to create smart maps that identify the locations of the customers, can accumulate information about various customer demographics and their behaviors, and business leaders can effortlessly understand which localities have the highest number of loyal customers.
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Trade Area Analysis: Retailers need to select suitable locations for new stores and define market shares and sales targets. Using trade area analysis, retailers choose locations for stores where target customers reside.
With the support of location intelligence, retailers can gather data over time to measure customer trends and understand whether their customer demographic is growing or shrinking in a particular area.
Competitive Strength Analysis: Business leaders must analyze their competitors’ market share previously setting up new retail stores. Location intelligence can be influenced in this context to measure a competitor’s market share and penetration in a specific geographical location, and retailers can understand the customer loyalty of competitors in that area. Location intelligence gives retailers the frequency of store visits of competitors’ customers or if their customers tend to visit other stores.
Asset Tracking: Retail businesses often require meeting the ever-increasing customer demand. If a store receives a late delivery, productivity and customer experience can be severely affected. Thus, retailers have to continuously track the whereabouts of their delivery staff and manage the supply chain. Asset tracking can be streamlined using location intelligence, and retailers can develop custom location apps installed on smartphones.
Geofence: Retailers can establish virtual geofences for marketing purposes. When customers enter or leave the geofence, retailers can push notifications about ongoing deals, offers, and product discounts using a mobile app and notify customers about the arrival of new products in their store. In addition, these retailers can alarm customers about the products and offers when they are nearby.
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