2020 has been the year of surprises and unknowns. Seven months ago, no one thought that the world would shut down; no one could have pictured the new masked shopping experience without saying, “No way, that would never happen here!” Many industries were affected by the global lockdown, but few more so than the retail industry. Retail budgeting is becoming a top priority for many leading brands. As the country slowly reopens and tests the waters of this new normal, how can leaders in the retail space know where to spend their hard-earned dollars, and when?
By using location data! Location intelligence is more than just a data tool to understand trends. It’s become essential in this new climate to help retailers budget more efficiently, especially when so many things are still unknown.
Know who is shopping and when
Last year, it was easy to look up the previous years’ data and make a relatively safe prediction for your foot traffic expectations on any given day.
That was last year. This year, using 2019’s models won’t work due to the rapid shift in consumer shopping behavior. Considering all of the changes afoot post-lockdown, predicting what consumer behaviors will look like in 2020 seems impossible.
By using cleansed and verified datasets based on mobile location data, location-based intelligence is the most reliable key to predicting who is shopping and when, and the best times to send ads to those shoppers. This gives you an edge over your competition while making the most of your ad spend.
Meet supply and demand
Imagine you are a retailer on Miami Beach that sells scuba diving gear. Every year since you opened your doors, you have been able to predict that July is a heavy diving month as more tourists are in town.
You base your inventory on 2019 models, place an order with your supplier, and buy more tanks than goggles for the inevitable tourist rush. Fast forward a month. You have a surplus of diving tanks but sold out of goggles within a couple of days, losing business to your competitor across the street who utilizes a location intelligence tool to meet supply and demand.
With the right location intelligence solution in place, you can use actionable data to understand where demand is coming from and adjust your inventory accordingly. Our Miami Beach dive shop would have been able to predict that people are looking for solo water activities, not dive tours, and could have ordered accordingly.
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A spotlight on resources
Because last year’s data won’t be sufficient for this year’s climate, many retailers are going to experience resource issues when it comes to ad spend, and with most marketing budgets reduced, how can you make the most of your budget?
Gravy Audiences can provide a well-rounded picture of who your current buyer personas are. From where they shop, to what hobbies or interests they fall into, and you can adjust your ads to a more targeted audience.
Location intelligence will give you insight into who is shopping for your products and when helping you deliver targeted ads that convert instead of spending unnecessary dollars on people who are not interested in what you are offering.
Location intelligence is essential for retail budgeting
Using location intelligence for retail budgeting isn’t just recommended; it’s essential. Now more than ever, actionable data and targeted ads can be the difference between a business that succeeds during these times and one that stays afloat.
If you are in retail and are interested in using data-driven decisions to flourish in this new economy, we can help you overcome challenges like budgeting. We turn location data into location intelligence, helping you create better customer experiences while saving marketing spend. Schedule your free consultation with our location experts for personalized insights into how you can use location intelligence to help your retail business thrive.