Study: Location data could improve back-to-school campaigns
Retailers have a new secret weapon to understand the offline shopping journey — one that could spur spending this back-to-school season.
To date, 86% of retailers already use anonymous location-based data in current marketing efforts. With the back-to-school season looming, location intelligence can help brick-and-mortar retailers strategize and execute more efficient, better performing market campaigns that drive in-store visits, according to “Navigating Location Intelligence: Critical Impacts for Retail Marketers,” a study from location intelligence company, Cuebiq.
According to data, 78% of retailers consider themselves “very aware” of the potential uses of location patterns in mapping the offline consumer journey in order to garner actionable insights on consumer behavior, intent and brand affinity. Meanwhile, 81% of retailers said that location data was “very important” in improving their marketing performance.
Most companies use this data to get more detailed information on customer behavior, and the desire to better analyze attribution (both mentioned by 50% of retailers). Eager to leverage this information, 92% of retail marketers plan to increase their use of location data over the next two years, the study reported.
A key driver of location data is understanding which other brands/retailers their customers frequent (66%), as well as competitive intelligence (56%). Other applications for location data included planning social media ad campaigns (72% highly likely), planning digital ad campaigns (68% highly likely), measuring whether promotions resulted in visits to a store (73% highly likely), and pushing coupons or offers based on proximity to a store (67% highly likely).
Retailers are more likely to use customer level point-of-sale data than the other categories surveyed (66% vs. 55%). Retailers are also more likely to describe themselves as having access to a wide variety of indicators about where people spend time in the physical world (79%), the study said.
“Retailers face a pressing need to understand the nuances of customer behavior, preferences and intent, much more so than other brands,” said Antonio Tomarchio, CEO of Cuebiq. “As we get closer to the back-to-school season, the use of location data can aid in customer engagement and retention, as well as enable retailers to build stronger partnerships with suppliers by helping them understand who’s buying their product and where they can best reach those consumers.”