Location Analytics as the name
suggests is a term related to location. It is also called as location
intelligence. Location Analytics can be defined as a term which has the ability
to gain business insight from the business data based on the location. There
are multiple types of business insights and also there are multiple ways to
gain business insight.
As we know that there are many
international retail firms are using many traditional tactics to know the
behavior of their customer so that they can serve them a better experience and
indirectly they are increasing their customer base. In this Location Analytics
is the newest tool in the market which is very much improved and advanced and
not bonded by any location, with the use of this tool one can remotely track
the behavior of their customer and can act along to provide them better service.
So location analytics has become an essential tool for understanding online
customer behaviors.
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Regardless of its success worldwide there are relatively very few companies with large physical venues employ advanced analytics solutions that helps them to track customer behaviors. As a result most of the companies we can say are flying blind when it comes to understanding their customers in the digital world.
There are many business venue
owners from retail to airports to
education to amusement parks are trying their hands on this by applying
insights gathered from location analytics to all aspects of their businesses
including:
1) Design:
After analyzing traffic flows
in their stores, a big box retailer realized that there are some problems with
the shoe department as there is problem for customer to access the goods as it
was stacked by the merchandise and due to it customer access is limited. After analyzing
the merchandise were relocated to increase accessibility of the customer and
the next week there was a positive effect, sales was increased by double
digits.
2) Marketing:
A restaurant chain wanted to
understand that whether or not sponsoring to a local music awards had a positive
impact on customer visits in their restaurant. They have captured the data and they
have found that among the 15,000 visitors of the festival entrances 1300
visitors have also been visited in their restaurant in last month so they
concluded that the festival resulted in 1300 net new visitors.
3) Operations:
A retail grocery store chain
makes the use of location analytics to know the customer wait times in various
departments. This data not only hold managers accountable for wait times but also
it gave additional insight for staffing needs for each department throughout
the day
4) Strategy:
A regional clothing chain was
concerned about opening an outlet store would directly affect customers from
its main stores. They have analyzed their each store they have discovered that
less than 2% of their main store customer visitors visited their outlet and the
most impressing thing it found that the outlet gave them access to an entirely
new customer base with small impact to existing store sales.
Location Analytics can also be
used in other markets. Consumer goods and retail market has the highest share
in the overall market. Location analytics, other than consumer goods and retail
sector, has a wide investment in healthcare and life science, banking and
insurance, government, defense and aerospace, utilities, and real estate
verticals, manufacturing, travel and hospitality, transportation and logistics,
telecommunication and IT, public sector and energy media and entertainment.
Market Report:
Location Analytics Market is
expected to grow from $6.83 billion in 2014 to $11.84 billion by 2019, at a
Compound Annual Growth Rate of 11.6% from 2014 to 2019. Asia Pacific and Middle East regions
are growing rapidly with the respected CAGRs of 17.1% and 14.4%, respectively from 2014 to
2019.
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