Fuel your retail growth with in-store location intelligence
26. November 2018
The ongoing digitisation and widespread adoption of online shopping are informing how businesses make best use of their offline channels. Imagine brick-and-mortar stores being able to gather the same insights about customer behaviour that retailers gain from online shopping. This type of actionable data can empower retailers to create the optimum customer experience in their stores, while making a positive impact on revenue and boosting long-term growth strategy. The concept of delivering customers the right product in the right place has taken on a whole new dimension.
The missing piece of the strategy puzzle
Collecting data about customers, including assessing behavior, has always been a part of the systematic analysis employed by businesses. Now the top players on the market are incorporating location intelligence into their strategic decision making to maximise in-store sales to complement their offline efforts. More and more stores are employing entrance and beam sensors, utilising purchase history and offering loyalty cards to enhance the customer experience.
Questions that have so far only been answered based on guesswork or simply going with a “gut feeling” can now be easily resolved thanks to location data. Finding a location for a new store, evaluating your branch network, identifying the purchasing potential of an area or being aware of competitor presence have all become much easier. And while location data is often employed to leverage the presence of retailers across the market as a whole, it is now also being used to improve the in-store customer experience.
How your business can directly benefit from in-store location intelligence
Getting the customer into your store is the first success. But what’s even more important is the experience the customer has of your store. If you understand how customers interact with your store and the purchasing journey they go on, you can gain relevant insights which will help you to better organise your store layout and help you choose the right “mix” of products.
Let’s look at some of the ways location intelligence can benefit your in-store activities:
- Drives the conversion rate in your stores – one of the most important things is to understand why a customer doesn’t make a purchase in your store. Having the right insights about the internal movements of customers will help you to improve access routes through aisles, rearrange goods on shelves and adjust the number of cashiers to meet customer flow, etc.
- Optimises store staffing – if you can analyse the trends in the number of incoming customers visiting your store, the number of transactions over a certain time period and the average times between entry and purchase you can create accurate staffing schedules, leading to optimised labour costs.
- Helps you choose the right marketing mix – knowing your customers not only helps you choose the right mix to meet current needs and trends, but also gives you more info about how to personalise the promotions and in-store recommendations you are able to offer your customers.
- Lets you adapt spatially – if you can predict the movement of customers through a shopping centre, for instance, you can better plan the layout of your facility and manage staff movement, such as cleaning and security services.
As a complement to your other business intelligence data, intuitive location intelligence software can open up new opportunities for growth. But data on its own is not enough. Knowing what to do with it is what counts. To really benefit from location analytics you need to first analyse and then act. The right location intelligence solution enables you to make use of a host of features, allowing you to define reports, work with logical data structures and visualise metrics using heat maps.
Right now this technology is being exploited by big business, but the trend has been set and even the smallest business are now coming on stream. Learn more here and see why you should be part of the ever-growing number of businesses availing of location intelligence.