Merge mobile geolocation data with footfall counts to gain a holistic view

A significant trend in this evolution is the integration of geolocation data. But what does this integration involve? What opportunities does it offer, and what are its limitations? We sat down with retail expert Mark King to explore all the details. 

Geolocation data defined

"Geolocation data is aggregated and anonymised but pinpoints the mass of data, transforming our grasp of consumer behaviours. It’s derived from devices like smartphones and GPS-enabled cars, revealing not just locations but the narratives behind consumer behaviour. From store check-ins to social media tags, it provides a comprehensive view of consumer activities. Utilising GPS, we can accurately determine locations, offering insights into movement patterns. This data, essential for understanding physical and digital interactions, is crucial for applications needing precise location details. It's widely used in smartphones and other devices, providing not only coordinates but also context like operational hours and available services."

The value of geolocation data for retailers

"Retailers can derive immense value from geolocation data. It's like having a bird's eye view of your customer base, understanding not just where they shop, where they come from, their preferred mobility and  their lifestyle choices, and even their spending power. This information is critical in segmenting customers, tailoring marketing efforts, and ultimately enhancing the shopping experience to meet their specific needs and preferences. Geolocation data empowers retailers with actionable insights, enabling them to map out customer journeys, assess the effectiveness of their store locations, and even predict the success of promotional activities. It's about getting a holistic view of the market dynamics, understanding the competitive landscape, and making informed decisions that drive growth and customer satisfaction."

The limitations of geolocation data alone

"Geolocation data's primary role is to provide insights into customer behaviour rather than serve as a mere footfall counter. PFM-Intelligence are uniquely placed to validate this data and blend it within their own data sets, providing solid robust movement data unparalleled in the industry. This nuanced approach that focuses on qualitative insights into consumer origins and habits, with quantitative footfall counting is seen as a happy marriage other providers are unable to provide.”

Integrating geolocation data with footfall analytics

"So, while many present geolocation as a standalone solution, we believe its true power lies in integrating it with footfall counting data, creating a holistic approach. Footfall data provides a solid quantitative measure of the number of people entering a location. However, this can be limiting, especially during periods of declining foot traffic when there are fewer visitors to count. 

By integrating geolocation insights, we gain a comprehensive understanding of visitor origins, behaviours, and preferences. PFM-Intelligence have created a suite of reports that clearly define the data in a simple end user format, instead of just receiving a spreadsheet with information about the customers. This integrated solution provides actionable insights to leverage the data effectively. It's not just about knowing where most customers come from; it's about making connections and identifying untapped potential for hyper-located marketing.”

Insights into untapped potential 

“Geolocation data provides valuable insights into the untapped potential within primary, secondary, and tertiary catchment areas. The primary area typically encompasses the nearest and most densely populated region, representing the core customer base. In contrast, secondary and tertiary zones cover areas further away with varying visitation frequencies, offering opportunities for growth.

Understanding the customer distribution and growth possibilities across these catchment areas is crucial. It allows shopping centres and retailers to identify core support areas and areas with untapped potential, primarily found in the secondary and tertiary zones. To determine these locations accurately, blending distance analysis with population insights is essential. This involves assessing the distances customers travel and correlating them with population density to effectively categorise catchment areas.

This segmentation not only reveals the core customer base but also uncovers untapped markets with growth potential. By analysing both the current customer base and the potential market, shopping centres and retailers can gain a comprehensive understanding of their support base and growth opportunities. This insight enables hyper-located marketing efforts to maximise outreach and market penetration.”

One dashboard to rule them all

Consolidating all this data into one dashboard offers a clear view of primary, secondary, and tertiary locations, along with market penetration rates and consumer demographics. The dashboard provides insights into consumer spending habits, translated into personas for better understanding. It includes key metrics like income, household averages, and penetration rates per area. You can easily visualise target regions and explore correlated postcodes to refine your marketing strategy. This approach helps you identify your ideal customer and spot areas with untapped market potential, guiding targeted marketing efforts.”

Hyper-located marketing

“These insights are incredibly powerful for ‘hyper-located marketing’, both digitally and physically. For example, you can pinpoint secondary location areas with less than 30% penetration and income demographics that match your target audience. Then, you can deploy personalised offers, traditional print media, targeted social media campaigns and hyper-located digital media to engage with potential customers effectively. This approach ensures that marketing efforts are finely tuned to meet the needs and preferences of the local audience, maximising their impact.”