Not only GPS tracker has become the most crucial among people for basic necessities, but also for the business to gain real-time location data to perpetuate the customer experience.
Businesses are adding and using the geographical data with the business data and mapping them accordingly, extracting the additional insights about sales, logistics, and supply chain.
Most importantly, Location analytics gives you the visualization of the flow of goods, sales, and supplies with depth and distance. Most of the information produced across industries today already using in evaluating the product’s shipping route, point of origin, and point of sale are already used to some degree to categorize and segment data.
Location analytics integrates the geographical data on assets, infrastructure, transportation, and the environment with data on an organization’s operations.
In nutshell, location analytics can be defined as the ability to gain insights from location data. The location data of users includes a city, country, or GPS location.
When companies in the retail industry insert this data within the big data dashboards and data science models, it allows companies to discover new trends and insights.
Use cases of location analytics in retail include:
Retailers use location analytics to select the profitable sites for new stores narrowing the search based on terms such as proximity to competitors, factors affecting retail store location, drive time, and demographics of potential customers.
Factors governing the selection of location:
Easily Connectivity :
Stores must be accessible to the majority of the populace and must be connected to different transit modes.
Availability of parking with ease and comfort is the most crucial factor for any selection process because if the customers find it hassle to find parking, it would discourage them from visiting the store.
Identifying and managing the selection of location will cut-off the operating costs.
Presence of Competitors:
Understanding the market share available in selecting the location for not getting drowned by excessive competitors.
First, a large variety of predictive variables can capture the various demographics data such as
- Total data of the total population by zip code, gender & Occupancy status.
- Economic Factors like sales figure & House price index
- Understand latent factors that drive sales
- Demand forecasts at a product/segment level
Location Intelligence Marketing:
By analyzing the geo-specific data, you cannot only make your marketing initiatives successful but also it can help in reaching out right people at the right times in the right place.
Location marketing Intelligence is the process where geospatial data relationships are used to determine your marketing processes. This is facilitated by geotagging. Geotagging data can be combined with customer, store, or local demographic data. It can then be easily Identified by Integrating it into a map. This location data gives the visualization to new areas to target, reach out to potential customers, or improve individual existing customer value by providing more personalized service.
For instance, the food retailer looking to gain a greater share of young professionals aged 25-35. it can get the overall demographics according to the required information. The retailer had to purchase social media-based paid advertising to reach out to potential customers in relevant areas.
It creates a positive shopping experience by boosting the efficiency for all the areas of operations: tracking the wait time in checkout lines to spot gaps in staffing or point-of-sale processes and technology or keeping tabs on inventory delivery trucks to ensure the most efficient routes.
With the development of visualization and the IoT(Internet of Things), location analytics has become crucial to business for improving the contextual accuracy of marketing, sales, and customer service apps and platforms.
Map-based visualization which includes a dashboard of maps, and navigation through map interfaces are the three highest priority features enterprises look for today. Layered visualizations, multi-layer support, and custom region definition are the additional most important features.
Location Analytics Benefits:
There are several uplifts of using Location Analytics, whether it’s setting up a new business or refurbish an existing one. It can forecast the performance of existing stores as well as new stores. It can also help in identifying the locations according to the conditions with high market potential.
Location analytics creates a market area profile that minimizes your risks of failure. Location analytics can guide you through integrating your business into the needs and shopping habits of an area, can give you a competitive advantage, and as a result cutting the costly mistakes.