5 ways supermarkets can use location intelligence
While supermarkets may have reported strong growth in the context of the Covid-19 landscape, it’s worth considering that despite robust recent performance, the UK’s retail market continues to face significant challenges in 2021. Many of these challenges can be overcome using location intelligence.
Let’s consider some of the ways LI for supermarkets can be used to give stores an advantage:
1) Supermarket location planning
It’s no secret that the advent of online shopping has meant that customers are now more reluctant to have to travel to an out-of-town location simply to pick up groceries. There’s also an increasing tendency for shoppers to make purchases ‘on the go’ – today’s active lifestyles mean that individuals are more likely to pick up the ingredients for an evening meal after a busy day at the office or a trip to the gym, as opposed to planning a weekly shop.
As the behaviour of grocery shoppers becomes ever more complex, and the nature of shopping trips ever more fluid, it is more important than ever for supermarkets to track and respond to the location of their customers.
With location intelligence, organisations can track the total number of customers within the catchment area of a store. They can also ascertain how regularly they’re inclined to take a visit to a store, and whether there are any competing stores in the same area.
This data can then help an organisation to decide which of their branches have the greatest scope for profitability and growth. It can also be used to pinpoint potential new locations for future stores.
2) Logistics improvements
To remain competitive, supermarkets need to be able to offer home delivery. LI can be used to help reduce the costs and times of deliveries by helping to plan more efficient delivery routes and identify prime warehouse/fulfilment locations.
3) Customer experience improvement
Imagine being able to analyse the flow of each individual customer through your stores, and now think of how this information could benefit you. This isn’t a pipe dream, it’s the reality of location intelligence for supermarkets. With this data, you’ll be in a better position to optimise the placement of products around the store, figure out how many parking spaces you’ll need, and consider whether extras like an in-store café could be of benefit to the business.
4) Utilising customer loyalty
If your store runs a loyalty card scheme, you’ll already have access to detailed customer purchasing habits. LI allows you to harness this information to make sales forecasts and stock control predictions for each individual branch. This way, you’ll optimise your shelf space, drive those sales home even further and be more efficient in your fulfilment operations.
LI helps you to gain actionable insights into the demographics and behaviours of your customers. With this data, you can develop bespoke marketing messages for key customer groups based on their preferences, location and more. For example, you could use push notifications to highlight specific offers based not just on the proximity of a customer to your store, but on their personal preferences as a shopper.
These sorts of real-time customer insights are crucial to the success of supermarkets in 2021. We’re well into the century of the self, and this means customers expect tailored marketing that matches their needs and wants. Location intelligence is the only guaranteed way to achieve this – and perhaps it’s time your retail organisation got on board.
Request a 10-minute demonstration of Periscope® to see just how much this powerful platform can do for your supermarket. Knowing where your customers are and how they are behaving will be critical to your future success.