Innovating Retail: The Impact of Accurate Location Data

Evolving consumer habits, technological advances, and personal data governance require retailers to reassess their strategy to remain competitive. Geospatial data and technology should be integral in every step of the customer journey, including site selection, online ordering, inventory management, and home delivery.

Mobile ownership is one of the most crucial pillars of a highly digital world. Studies show that most (92 percent) Americans own smartphones in 2023 (https://www.statista.com/topics/2711/us-smartphone-market/). Aside from a significant shift to a digital lifestyle, mobile ownership has forced businesses across various industries to adapt, especially retail.

The rise in mobile ownership is not necessarily alarming for a forward-looking business. It provides retailers with remarkable opportunities to target consumers using geolocation data. Mobile devices have a built-in capacity to provide crucial data about the user's real-time location with dependable accuracy.

Geolocation data, even in its most basic form, is highly valuable. Moreover, it has consistently evolved along with the many technologies that impact the mobile landscape.

Let's examine how accurate location data using geolocation technology can transform the face of any retail business.

Improved Customer Experience

Geolocation software and APIs can improve the customer experience. For example, retailers can use understanding the target audience's preferences to devise appropriate strategies to meet their mobile customers' needs and desires.

Many retailers and restaurants use geolocation to determine when a customer who placed an order is near the store and then ensure their order is ready as soon as they walk in.

Optimized Last-Mile Delivery

Retailers wishing to provide last-mile delivery face several challenges. The most critical is the high risk of packages labeled Undeliverable as Addressed (UAA). That could be due to a misspelled address, relocation, delivery to the wrong address, or an unfindable address. In 2023, the U.S. Postal Service put losses caused by UAA mail at $1.3 billion.

While relying solely on a zip code for delivery was once possible, this is no longer the case. Using an address verification API (https://radar.com/product/address-verification-api) is now, more than ever, a necessity for any retailer. The emergence of major players like Amazon has created new expectations among customers. Retailers must keep up using technology like geocoding that assigns geographic coordinates to a mailing address.

Another issue is consumers' heightened expectations for next-day and on-time delivery. They want it free or cheap, and most like the ability to track their packages. These factors are relevant because most (98 percent) consumers state that delivery significantly impacts their brand loyalty.

Many (84 percent) report that they will not make another purchase from a retailer after one negative delivery experience. Most (87 percent) expect compensation, and over half (52 percent) expect reduced delivery costs when delivery is later than expected.

Perhaps most importantly for retailers, last-mile delivery accounts for the highest (41 percent) of overall supply chain costs, significantly reducing profit margins. Choosing the ideal geospatial solution for last-mile delivery involves assessing how it collects and uses location data, its geocoding accuracy and performance, and address recognition and validation.

The Power of Location Data

Accurate location data is more than just creating maps - it's crucial for bringing fresh ideas into retail and making operations more efficient to keep customers happy. As retailers adapt to the digital era, geolocation technology is a smart way to meet challenges.

By using precise location data, retailers can improve how they deliver products, improving the customer experience and giving them a real edge in the market. It's clear that in this new age of retail, using accurate geolocation data isn't just helpful - it's essential.

Marica 25 G Plovdiv, Bulgaria

ESBO LTD is a specialized internet marketing agency specialized in local SEO advice.

This release was published on openPR.