As back-to-school season looms, the retail sector is at the forefront of using location data to understand the offline consumer journey.
New York, NY (July 16, 2018) – 92% of retail marketers plan to increase their use of location data over the next two years, according to research commissioned by location intelligence company, Cuebiq. The findings, released today, are detailed in the white paper “Navigating Location Intelligence: Critical Impacts for Retail Marketers” based on the proprietary study completed by 451 Research, an information technology research and advisory company.
As retailers seek to increase their marketing impact during back-to-school season, effective and data-driven marketing campaigns are more important than ever. Investments in technology like augmented reality, digital advertisements, interactive displays and location intelligence can help brick and mortar retailers strategize and execute more efficient and better-performing market campaigns to drive in-store visits.
Marketers and CRM managers within the retail sector are at the forefront of using anonymous location data to understand offline consumer behaviors, as 86% of retail respondents already use location-based data in current marketing efforts. They consider themselves ‘very aware’ (78% of respondents) 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.
“Unlike restaurants and car dealers, retailers face a direct assault from Amazon and a host of emerging e-commerce companies,” says Antonio Tomarchio, CEO of Cuebiq. “However, they have an advantage in the physical interactions through which they engage customers in their real – not just digital – lives. The challenge is for brick-and-mortar to utilize their stores as a source of consumer insights, as Amazon has long done on its website.”
The research, conducted in April of 2018 among North American marketers and CRM managers in large companies primarily within four vertical markets (automotive, retail, quick-service restaurants and banking), also found that:
- 81% of retailers stated that the use of location data was “very important” in improving their marketing performance. The most cited answers for the use of such data were the need for more detailed information on customer behavior and the desire to better analyze attribution (both mentioned by 50% of retailers).
- 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%).
- 66% of retail marketers said that understanding which other brands/retailers their customers frequent is a key driver for their use of location data. There is also keen interest among retail marketers for competitive intelligence, as 56% of respondents claimed they would be highly likely to deploy the data for competitive intelligence.
- Other significantly high-scoring 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 face a pressing need to understand the nuances of customer behavior, preferences and intent, much more so than other brands,” says Tomarchio. “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.”
Cuebiq commissioned the study with 451 Research to identify recommendations that will help marketers effectively map the complete customer journey. The report is based on primary research survey data, assessing the market dynamics of a key enterprise technology segment through the lens of the “on the ground” experience and opinions of real practitioners– what they are doing and why they are doing it.
Cuebiq’s proprietary methodology enables anonymous collection of location data and analysis of group consumer offline trends. This data comes from mobile apps to whom we provide location technology to enhance their capability to create location driven features and advertising. The data collected is anonymous with no personally identifiable information, and is only collected if users opt-in. Ultimately, the aggregated data is used to analyze store performance, measure marketing activation effectiveness and help retailers better compete with e-commerce companies.
Cuebiq is GDPR compliant, providing partner apps with a turnkey solution to protect users’ information, as well as systems for improved consent and opt-out management, including a proprietary app that provides users with an additional way to exercise their privacy rights.
A copy of the white paper can be downloaded here.
Cuebiq is a leading location intelligence and consumer insights company leveraging the largest database of accurate and precise location data in the U.S. Its data intelligence platform analyzes anonymous location patterns to allow businesses to glean actionable insights and better understand the offline consumer journey. Cuebiq’s SaaS platform provides clients offline location analytics, real-time campaign optimization and footfall attribution, as well as geo-behavioral audiences for cross-platform ad targeting. Cuebiq is headquartered in New York with offices in San Francisco, Chicago, Italy, and China.
Cuebiq has also been a leader in utilizing data and insights in the service of a variety of causes. Through its “Data for Good” initiative, the company shares its location insights with researchers at top universities and nonprofit organizations to drive innovation for causes such as improving quality of life in underserved communities, natural disaster response, and smart city development.