As marketers continue to navigate how to reach customers in a post-COVID world, it can be difficult to gain back consumer confidence. Consumers are adjusting to new routines. Many have adjusted their shopping habits as a result of the coronavirus pandemic. More consumers are shopping online, ordering food delivery, and delaying major purchases. According to a Coresight Research survey, 47.4% of consumers plan on keeping these new habits in the long term. So, how do marketers learn what new habits their customers have picked up and stay on top of consumer behavior trends? They’ll need to invest in customer analytics.
What is Customer Analytics?
Customer analytics is the analysis of customer data to make better business decisions. Companies who use customer analytics have seen significant results. A McKinsey survey indicates that customer analytics improves overall company performance including ROI, sales, profit, and KPIs, which allows them to outperform their competition. There are several different types of customer data analysis, such as customer segmentation, engagement, and churn. When choosing which type of customer analysis to conduct, it’s important to consider the company’s customer strategy goals. Customer analytics tools and platforms, like Gravy Navigate, provide marketers with a way to quickly and efficiently analyze customer data.
4 Tips to Get Started with Customer Analytics and Location Intelligence
Before getting started with customer analytics, marketers need to have a customer analytics tool which meets their needs and understand the goal(s) of their analysis. Once determined, then identifying what type of customer data to include is an important next step. Don’t just rely on data collected from customer surveys, censuses, and reviews — these can only provide broad insights and don’t reflect current consumer behavior trends. Location intelligence gives marketers actionable insights into their customers’ interests, habits, and preferences.
Here are four tips on how marketers can use location intelligence for customer analytics:
1. SEGMENT CUSTOMERS BY LOCATION.
Customer segmentation is one of the most effective ways to ensure marketers are reaching the right customers. By dividing customers into segments based on location, marketers can tailor the messaging of their campaigns towards the region, city, or town, known as marketing localization. Marketing localization allows companies to increase their brand awareness and create a better customer experience. Localization isn’t just about adjusting the messaging language; it also includes understanding what products or services appeal to consumers living within a particular location. Take, for example, a resort specializing in outdoor activities that wants to run two separate marketing campaigns: weekend getaway deals for local residents and out-of-state tourists living in the adjacent state. The resort can segment out their data into those two different groups based on location, increasing the chances of reaching potential customers who would be interested in those deals.
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2. PERSONALIZE MESSAGING BASED ON LOCATION.
Location intelligence can also be used to further personalize messaging. Our hypothetical resort, for example, found value in segmenting customers by region, but they also need to consider personalization at the individual level with advanced audience targeting. Do their local customers often visit sports shops or retailers who specialize in camping equipment? Are their customers who live in the adjacent state more likely to go to spas or salons? Based on this information, the resort’s marketing team is able to target their local campaign to consumers who visit local camping or sports shops rather than spas or salons.
3. IDENTIFY TRENDS FROM HISTORICAL AND CURRENT LOCATION DATA.
With consumer behavior changing across the U.S., keeping up with the latest trends is vital. When marketing analysts integrate historical and current location data with customer data in their analytics tool, they are able to correlate foot traffic data with sales or other trends to see changes over time. This insight allows marketers to know how consumer behavior has changed and adapt their products or services to those trends. In the case of the resort, the marketing team can use location data to see how their customer behavior has changed. They might find that their out-of-town customers used to frequently go to salons or spas, but now they are visiting beauty supply stores more often. This can indicate to the resort that their out-of-state customers are now taking their spa days in the comfort of their own homes. They can adjust the campaign messaging to let those customers know that they get a special in-room spa kit as part of their socially distant vacation package.
4. COMPARE BUSINESS LOCATIONS TO OBSERVE DIFFERENCES IN CONSUMER BEHAVIOR.
A customer analysis done with location intelligence allows businesses to compare differences in consumer behavior at their own locations (or even their competition’s locations). Foot traffic can be compared to see which locations are getting the most customers or how long customers spend time at each location. This data can also be used to build out buyer personas based on where the customers go in the real world.
Let’s say the resort has two different locations and is looking to understand where customers go before their stay in order to inform their room services. They might observe that customers who stay at resort A are more likely to go to speciality grocery stores than those who stay at resort B. This allows the marketing team to know that they should consider partnering with the speciality store to provide their guests with contactless grocery delivery.
Benefits of Using Location Intelligence for Customer Analytics
Location intelligence enhances the quality of customer data as foot traffic gives insight into the customer journey and real world behavior. With it, marketers can understand their customers better and gain insights into how they can improve their campaign messaging and customer experience.