How wonderful would it be to take the guess work out of trying to determine consumer behaviors; why they are buying, what they’re buying and where they’re are coming from. Luckily you can by applying a few fundamental location data practices. But, to get the full benefits from data-driven analytics, companies first need to be willing to invest in it.
After exploring the retail industry as a whole, here are some key findings to help guide your future location data efforts:
Fact #1:
While 85 percent of customers prefer to shop in a physical store, 79 percent shop online.
Key Takeaways:
People want to support local stores, but if the local stores don’t have what they want at the price point they want, they will go online. Location data can help store front locations see where their buyers are and what the average income in those areas is, giving them the knowledge needed to create effective location-based ads that reach their target audience and bring them in the door.
Fact #2:
Research by American Express found 60 percent of consumers are willing to pay more for a better shopping experience.
Key Takeaways:
By combining location data with existing customer data, such as preferences, past purchases and online behaviors, companies gain a more complete understanding of customer’s wants and needs. From store design to customer relations, this helps stores create an environment that speaks to clients and provides an enjoyable experience.
Fact #3:
90 percent of business managers believe analytics improve sales and 62 percent believe it increases sales by over 20 percent.
Key Takeaways:
By investing in analytics, retailers can identify area-specific spending patterns, key direct-marketing analytics and general insights that help personalize the shopping experience, contributing to increased profits and logistical efficiency. As the old saying goes, “sometimes you need to spend money to make money.”
Fact #4:
Research shows that customers refer your business an average of 16 times after a great shopping experience!
Key Takeaways:
Customers Refer! Create an environment where customers feel an emotional connection by keeping up with the latest trends that correspond with the preferred style of your target audience. In turn, they’ll be more likely to come back, perhaps even with a friend or two.
Fact #5:
95 percent of consumers have taken action as a result of a bad experience, and of those, 85 percent wanted to warn others about that business.
Key Takeaways:
Get feedback from your customers when you sense dissatisfaction and train your staff to do the same. Showcasing an attitude that’s committed to resolving the issue is a sound way to mitigate any quarrels the customer may have. Also, you can look into data-driven programs that collect customer feedback, adding a more analytical approach to your efforts and allowing you to identify which of your employees are creating a desirable environment.
Location Analytics is the way businesses can grow, prosper and find their way out of a dark hole to complete against giant online retailers. 98 percent of IR500 retailers use some form of location analytics as an essential tool for understanding, predicting, enhancing and transforming the customer experience. To compete and stay afloat, smaller retailers need to adjust their strategy and implement a data-driven customer-first approach.
This article was contributed by Jennifer Hamilton-Butler, Geopointe Account Executive.
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