Consumer Behavior
Why location data is critical for consumers and retailers
Brian Cluster, director of industry strategy for CPG & Retail, Stibo Systems, explains why why location data is so important in 2021 and why managing it properly is key for retailers looking to expand.
March 1, 2021 by Brian Cluster — Director of Industry Strategy for CPG & Retail, Stibo Systems
When COVID-19 hit full-force this time last year, in-store shopping became one of the most anxiety-inducing undertakings in our daily lives. The retail world as we once knew it changed significantly and will likely never go back to the way things were pre-pandemic.
Stores introduced or ramped up curbside pickup or buy online pickup in stores. Consumers increasingly ordered necessities like groceries, hand sanitizer and toilet paper online rather than going into stores. In fact, online interactions grew from 42% of engagements in 2019 to 60% last year.
And as consumers started to venture back into brick-and-mortar stores, they expected brands to keep them well-informed, through apps or websites, about things like hours of operation or special shopping times set aside for seniors or vulnerable populations.
As such, it was — and continues to be — critical for retailers to get a better handle on their location data. Doing so can ensure that they can keep customers up to date and also enables them to manage their employees more adeptly. Here's a deeper look at why location data is so important in today's retail environment — and why managing it properly is key for businesses looking to expand.
Why location data is critical for successful business planning
Location data can play an important role in ensuring day-to-day operations run smoothly — a lesson that's been clear throughout the COVID-19 pandemic. Every week, managers create schedules to ensure their grocery store or restaurant has enough workers in each department to keep up with demand. Of course, managers can also encounter unforeseen circumstances: a store must close down for a day to clean because of a COVID outbreak, or several employees call in sick. Better management of location data can help a business reassign employees and make sure they don't lose hours, or that stores are properly staffed.
Looking at the bigger picture, location data can help brands predict whether their product — or even an entire store — will be viable in a certain shopping center or strip mall. Past performance data is critical in this planning process. Analyzing local e-commerce sales, market data, customer feedback and foot traffic can help a retailer decide whether they're making a smart investment based on the rent.
For instance, a shoe store may question whether it's worth opening up right next to a department store. But if they make a good portion of their sales on a type of shoe the department store doesn't offer, such as shoes designed for runners, their shop may be the perfect complement to the department store. Again, understanding location sales data — and the performance of stores set up in similar locations, as well as competitor performance — can help businesses elude bad decisions while excelling in spaces conventional wisdom would tell them to avoid.
Detailed location data draws in consumers
At the end of the day, the more a company shares about its retail locations, the better. But that information, available on its website or app, must be up-to-date and accurate, particularly since COVID-19 has forced so much change.
Location data can enhance the online presence of a business, keep customers informed and enable retailers to better manage their staff. And for businesses that don't have a robust location data management plan, there's no time like the present to invest in one — or to partner with a company well-versed in location data management. Keeping location data up-to-date is important for brands not only planning day-to-day operations, but also planning their next big move.
Whether consumers are ordering online and picking up curbside or masking up and venturing through the doors, accurate location data can make a world of difference in a store's ability to provide an outstanding customer experience — and keep them coming back for more.
Brian Cluster is director of industry strategy for CPG & Retail, Stibo Systems
About Brian Cluster
Brian Cluster is Stibo Systems' Industry Strategy Director, specializing in the Consumer Packaged Goods and Retail industries. He has a strong 20-year track record of collaborating on strategy, building and delivering analytics, and business & digital transformation. At Stibo Systems, Brian is putting his varied industry expertise to good use, providing direction, strategy and relevant insights for our field teams and ·helping driving customer value for master data management solutions.
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