How to Leverage Location Intelligence to Increase Online Sales
April 21, 2020
In terms of current consumer trends, online sales show no sign of slowing down. In fact, mobile data traffic is projected to increase by 700% between 2016 and 2021. The introduction of new mobile ad formats, such as click-to-watch video and carousel scroll, have revolutionized the way consumers are fed information. Ultimately, as more consumers take their shopping online and the line between online and brick-and-mortar retailers blurs, retailers can use location intelligence to better understand their preferences.
Here are 4 ways retailers can use location data as they move online to positively impact their bottom line:
Geofencing Allows for Better Online Targeting
Geofencing allows retailers to set up a perimeter around certain locations that will trigger customer interactions when they cross into the space. This tool allows retailers to drive business between in-store locations and online sites. For example, consider an online shoe store. The shoe store can geofence an abundance of stores nationwide to find out which stores people are visiting and for how long. They can then push promotions for online sales to customers who have visited the geofenced stores. With the ability to reach in-store shoe buyers with targeted advertising, the store can refine its overall advertising tactics and grow its online marketplace.
Mobile Purchases Continue to Grow
It is estimated that mobile commerce will reach $284 billion, or 45% of the total U.S. e-commerce market, by 2020. Mobile “wallets” — an app on your mobile device that stores payment information — allow for fast and efficient check-out at an array of retail businesses. Other elements, such as QR codes and mobile fingerprinting technology, help to boost mobile as a point-of-sale device.
Personalization Increases on Mobile Apps
Due to targeted advertising on apps such as music streaming services and social media, personalization based on user preferences continues to expand. For example, Spotify’s “Daily Mix” feature crafts custom playlists based on users’ previous listening patterns. Marketers value consumer data, and consumers will provide them with such data, as long as it results in relevant offers and advertising. Giving users a customized experience will keep them coming back, ultimately investing more time on the app and often become willing to pay more for premium services.
Identify Partnership and Sponsorship Opportunities
By understanding the places and events that your customers frequent, online retailers can also identify promising partnership and sponsorship opportunities. Frequently visited places that are complementary to your business might serve as distribution channels for your products, and even host sponsored events or pop-up shops. Location intelligence can help businesses choose the event that attracts more of your target customers, helping you to maximize any return on investment.
Gravy Analytics and the Shift to Online Sales
As more customer spending takes place online, retailers will need to develop innovative ways to keep consumers interested in their products and services. Gravy’s location data helps reveal where people like to spend their time — providing valuable insights about consumer behaviors that can help all retailers plan for the future. For online retailers in particular, location-informed insights help to connect online activity and offline behavior, further diving into the specifics of the buyer’s journey.
Ready to learn more about how location intelligence positively correlates to successful online sales for your business? Request a consultation, and uncover the power of location data.