Location intelligence: How retailers can leverage location data
Location intelligence, the next step in business intelligence, supports retailers to analyze their points of sale and find the best places to reach target groups. The technology combines all location-related data – from socio-demographic figures to purchasing power groups, from movement data to a store’s KPIs – in one platform to give managers a 360° view of all retail branches.
Location intelligence software allows expansion managers and executives to make location analyses in a matter of minutes:
Big data analytics to generate highly valuable location insights
Planning of retail branches and micro-fulfillment centers, and drive expansion
Complements the expertise of retail managers with data-based analyses
Data-based retail decisions with location intelligence platform TargomoLOOP
Targomo offers retailers an easy-to-use location intelligence platform to combine and analyze all store-related data in a single tool: Targomo’s location optimization platform, or TargomoLOOP. Highly innovative software analyzes and visualizes the catchment areas of retail branches, and shows where there is potential to grow.
The basic version is free of charge, offering retailers a free mapping tool and essential analytics features. The platform is based on years of research and innovation, and allows retailers to answer key questions in retail and e-commerce.
Where do I find my target groups and how many can reach my locations?
The right locations are the places your target groups visits or where they live. Thanks to detailed data about demographics, spending power and consumers, Location Intelligence helps you pinpoint the locations where your target groups are present and how many.
What potential do new and existing locations have?
Knowing how many potential customers can reach a location is crucial to determine whether that site would meet your KPIs. Location intelligence can exactly calculate a location’s catchment area, using customizable travel modes and target groups.
Where are whitespots and how do competitors impact locations?
Advanced location analytics allows retailers to identify white spots where competition is low and market potential high. It can also show how competitors affect the catchment area of a location, and where cannibalization among own network branches could arise.
The New Retail: How TargomoLOOP works
Analyze all retail data at once
AI-powered reachability analysis
Calculation and data visualization
Reports and data downloads
Locations are tied to numerous data variables, such as demographics, purchasing power groups, revenue and local services. Targomo’s platform integrates all these data sets from different sources:
Open source / public data
Highly sophisticated reachability algorithms analyze all types of population data, calculating how many people can reach a specific location and the entire branch network. This analysis of a store’s catchment area can be done for a travel time of up to 120 minutes and four transportation modes:
By public transport
TargomoLOOP not only calculates a branch network’s reach among the population and target groups, but is also capable to visualize data on a map. Data visualization greatly enhances the understanding of the network and eases communication with all stakeholders. It allows retailers to analyze:
Comparison versus competitors’ points of sale
Different scenarios of branch network changes
The best locations based on shortlisting
To ease sharing and further data processing, managers can download location reports and raw data from TargomoLOOP. They can use graphics and tables in presentations or use the data in Excel or other any other database.
5 ways how retailers can benefit from TargomoLOOP's technology
Thanks to innovations in location analytics, businesses can easily combine retail data with locations, generating new insights into where sales are made and why. Here are five reasons why location intelligence platform TargomoLOOP is essential for every shop owner and retail manager.
1 – Shortlist the best locations with data
When it comes to shortlisting real estate offers, objective and data-based criteria are essential. Location intelligence software allows users to define customized location requirements, according to which real estate sites are ranked. What's even better, users can do this quickly and easily with a few clicks.
2 – Run through scenarios before committing investments
Location intelligence lets managers run through scenarios, allowing them to see the impact of new locations on existing branches. This will help minimize the risk of failed investments and increase the likelihood of success from day one.
3 – Localize assortment and marketing campaigns
Thanks to detailed data sets about potential target groups, retailers can truly act local. Depending on neighborhood characteristics and demographics, they can optimize the product range and adapt marketing campaigns to suit local tastes.
4 – Get results quickly, make fast decisions
The term location intelligence has been around for over 20 years, so the analytical possibilities are not entirely new. What is new is the speed with which results are available. Waiting days or weeks for a location analysis is a thing of the past: Modern systems deliver results in seconds or minutes.
5 – Save time with easy, intuitive software
Whereas some complex geographic information systems (GIS) are only for geo experts, modern location intelligence software focuses on user-friendliness. Everyone can learn it in no time and gain insights fast, saving retailers precious time and removing the need for lengthy studies. Last but not least, location intelligence software is available in the cloud – say goodbye to tedious installations and updates.
Discover where retailers apply location intelligence
Every business with one or several locations, whether in classic retail shopping or food service such as restaurants or bakeries, can use location intelligence and make data-based decisions. The analysis of demographics and catchment areas will help with site selection, network planning, and geomarketing.
Network Planning & Expansion
Find the best sales area for your business. Identify white spots, anticipate competitor impact and avoid cannibalization. Discover correlations between location variables and business KPIs to replicate success.
Plan micro-fulfillment centers with precision: Micro-fulfillment centers are becoming increasingly important as part of the quick commerce concept. Retailers establish small storage facilities within cities – also referred to as dark stores – granting them very close access to consumers and faster delivery at a low cost.
Improve your business decisions regarding location planning, sales management and location-based marketing activities such as out-of-home campaigns or events. Meet your target groups precisely and tailor your messages to their needs.
“Thanks to Targomo, we are able to evaluate new real estate offers within a few minutes.”
CEO, leading German retailer in the food and beverages industry
Can I use location intelligence in retail banking?
Yes, location intelligence can be used to analyze bank branches, just like any other B2C location. Using a variety of data, bank managers can examine the potential of neighborhoods to set up new branches. They can also look at areas where fewer banks are needed, without hurting service levels and customer satisfaction.
How does location intelligence support in finding and planning locations?
Location intelligence software is able to analyze large sets of data, from movement data tospending power and points of interest. Itcan calculate the catchment area for any locationand visualize it on a map. This gives companies the power to pinpoint the places or delivery zoneswhere they can best reach their customers. They can establish an optimal branch network that balances between the needs of customers and cost effectiveness. Based on customized criteria for target groups, managers can quickly shortlist the most promising locations.
How can location intelligence help reach my sales KPIs?
Location intelligence looks at the location and its surroundings, taking a 360-degree view of a branch. This will help to find the best places to reach target groups and support sales. Businesses can also use the analysis for assortment optimization and highly localized marketing campaigns, helping each branch to thrive in its specific business area.
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