Esri - Harness The Power Of Your Assets

Harness The Power

Unlocking New Growth Opportunities

Customer behaviors changed dramatically during the pandemic, causing customer-facing businesses to take a hard look at their processes, business models, and their ability to be responsive and resilient in the face of the uncertainty.

One clear lesson is that new customer acquisition and opening new locations are no longer a sure path to growth. Instead, retailers, grocers, consumer goods companies and other businesses that serve consumers need to drive more revenue from their existing footprints and customer bases.

Business-to-consumer (B2C) innovation leaders are adding geographic mapping to their existing CRM data to uncover previously hidden revenue opportunities among their loyal customers.

Follow these three steps to unlock the competitive advantage in geographic data:

Pinpoint opportunities to create differentiated marketing campaigns and experiences.

Identify your best (and most profitable customers.)

Localize inventory to improve fulfillment and store experiences.

Identify your best (and most profitable) customers.

The tenuous nature of consumer loyalty was never clearer than during the pandemic, when consumers quickly abandoned favored brands.

of consumers tried a new shopping habit during COVID-19, including:

• Different retailers/stores/websites

75%

But with the pandemic easing, 51% of U.S. consumers plan to splurge or treat themselves, with differences across generational and economic lines:

Who plans to splurge?

38%

of <$50K

51%

of $50K-$100K

67%

of >$100K

Pinpoint opportunities to create differentiated marketing campaigns and experiences.

As your customers increase their use of digital channels and applications, they create more detailed digital thumbprints that evolve over time. These data points help you understand their behaviors, preferences and needs in context, and in turn, help you uncover new opportunities for differentiation and growth.

Many consumer behaviors and preferences directly correlate with where they are in the world — and how close they are to your brand, stores and/or products. By adding location context to consumer behaviors, geographic data allows companies to hyper-localize marketing and engagement strategies:

differentiation and growth.

hyper-localize marketing and engagement strategies:

Create sales/deals/pricing strategies that resonate most effectively

Develop more tailored messaging and creative

Allocate marketing budget more effectively

Consumers want messaging based on where they are.

For example, while driving, car drivers in the U.S./UK want to be able to:

When you look at consumer patterns and behaviors at a hyper-local level, you can also better assess how specific segments — such as your most loyal customers in a key geographic area — are engaging with these channels and services, so you can improve over time. Key insights include:

What do they like?

What do they share?

What’s the overall return on these activities?

Where / how can we invest to maximize reach and impact?

What content and services are driving tangible action? (Clicks, cart activity and purchases)

“Segmenting target audiences by location with regional and spatially granular data has never been more critical.”

Global Web Index, 2021

Create more relevant marketing campaigns

Step one in crafting a new approach to growth is to find an efficient and effective way to capture this surge in discretionary spending and the new habits that will follow. You can renew and deepen customer loyalty by better understanding the patterns and nuances in individual customer behavior.

Adding geographic context to this data can help you uncover location-specific trends and dig deeper into the psychographics of consumers.

What traits characterize locations where our most loyal customers live?

Lynne Schneider, Research Director for Data as a Service, IDC

What behavior trends and similarities do loyal customers share?

Do loyal customers’ behaviors on mobile change when they are near our locations?

Lots of clues can be found right in your CRM:

Combining geographic and psychographic data enables you to ask questions such as:

TO DERIVE GREATER VALUE FROM THE DATA WE HAD

Longevity of the relationship (purchase history)

Using geographic data, you can examine trends and similarities in loyal customer behaviors across:

Product purchases

Localize inventory to improve fulfillment and store experiences.

The pandemic wreaked havoc on supply chains, as once-predictable demand fluctuated wildly in the wake of lockdowns and a shift in consumption habits. Location data can be invaluable in gaining hyper-localized views of demand patterns on a granular level, tailored to the specific needs of your business and customers. Fast-Moving Consumer Goods sellers in particular are focused on optimizing inventory using location analytics. The differing priorities various B2C vertical industries place on the use of location data illustrates both the wide scope of geographic data benefits and the need to tailor application to each business’ specific needs.

Top three opportunities from implementing location analytics

Vertical markets see location data differently.

59%

of gen z

68%

of millennials

48%

of gen x

Location data reveals new ways to create business value.

Businesses that thrive in this new world will be those that drive value through local, precise, hyper-targeted decision-making. Creating this value can lead to new, sustainable growth drivers. In a fluid, mobile-fueled marketplace, location data becomes an essential element to put consumer data in context and uncover new opportunities that drive value from loyal customers and locations.

Learn how Esri can help you uncover the geographic insights you need to create uncover previously hidden revenue opportunities among your loyal customers.

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Businesses are still adapting to shifting consumer needs and determining how they can best plan for the future. Resource allocation and fulfillment plans and strategies are largely influenced by consumers’ geographic location.

Allocating Resources

Allocating inventory

Retailers and brands must collaborate closely to ensure that the most in-demand products are either in-stock in certain stores or can be quickly shipped to locations.

Location is more than home addresses: It’s where consumers regularly travel, their preferred shipping locations, what stores they tend to shop versus get curbside pickup, how their mobile behaviors differ from desktop and more. Without intelligent geographic insight, companies are missing a key context clue that will help them drive fulfillment efficiency and profitability.

Geographic data and spatial analytics can help you dig deeper into how location impacts consumers’ product demands and needs, brand preferences, colors, patterns and more. For example, if the most loyal consumers in the Southeast region show a strong preference for blue polka dot patterns vs. the Northwest, that helps position inventory correctly for fast, efficient fulfillment.

Winners highly value location data.

Those who place high value on combining geographic and demographic data for better business decisions:

80%

53%

by income

By Generation

The average order value and basket size

The diversity of products purchased

Channels used to purchase

Channel usage

Spending behaviors

Time

OF YOUR ASSETS

Why Geographic Data Is Your Key To

Localize inventory to improve fulfillment and store experiences.

Pinpoint opportunities to create differentiated marketing campaigns and experiences.

Identify your best (and most profitable) customers.

43%

Find nearby restaurants or shops

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

38%

27%

A faster, more efficient supply chain

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

47%

27%

62%

Enhancing customer loyalty

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

31%

45%

27%

Taking advantage of new selling opportunities

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

44%

33%

27%

Optimizing return on inventory investment

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

Advocates & influencers

Loyal customers

Most frequent customers

Highest spenders

Who are your best customers?

Hover to meet them.

41%

Get more information about something heard on the radio

51%

Order food/ drink ahead

38%

Buy groceries or household items

• Different brands

• New shopping methods, including digital

By Generation

by income

of others

of winners

59%

of gen z

68%

of millennials

48%

of gen x

By Generation

by income

By Generation

by income

TRANSACTIONS TAKE PLACE AND USING THAT CONTEXT

and traditional GIS analytics. It is about realizing

“Location data is not just for verifying addresses

PREVIOUSLY USED TO PLAN AND ANALYZE ACTIVITY.”

the spatial context in which interactions and

CRM data enriched with information about location — where your loyal customers live, where they shop, where they are when they choose delivery versus a store visit, and so on — can help identify new pockets of profit opportunity and create a cycle of personalization to segmentation and back again. This helps shape initiatives to increase perceived value to loyal customers and seek lookalike customers through:

of consumers who began shopping in closer neighborhood stores during the pandemic plan to continue doing so after COVID-19.

of multi-location brands say executing locally at scale is very challenging.

77%

…and much more!

Marketing

Engagement

Product recommendations

Store and distribution locations

Inventory allocations

Refined trade and service area identifications

79%

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

44%

33%

27%

Optimizing return on inventory investment

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

Allocating Resources

Allocating inventory

Bringing together demand signals from across channels and combining those with geographic and customer data provides deeper insights to help plan the business.

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

38%

27%

A faster, more efficient supply chain

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

47%

27%

62%

Enhancing customer loyalty

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

31%

45%

27%

Taking advantage of new selling opportunities

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

44%

33%

27%

Optimizing return on inventory investment

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

A faster, more efficient supply chain

Enhancing customer loyalty

Taking advantage of new selling opportunities

Optimizing return on inventory investment

44%

33%

27%

Optimizing return on inventory investment

General Merchandise

Fashion, Specialty, Brand

Fast-Moving Consumer Goods

James McCormick, Principal Analyst, Forrester

“Although many firms have yet to appreciate the true value of location intelligence to contextually understand customer engagement, some do — and are already gaining competitive advantages with it.”

Harness The Power

OF YOUR ASSETS

Unlocking New Growth Opportunities

Why Geographic Data Is Your Key To

by income

By Generation

“Location data is not just for verifying addresses

“LOCATION DATA IS NOT JUST FOR VERIFYING ADDRESSESAND TRADITIONAL GIS ANALYTICS. IT IS ABOUT REALIZINGTHE SPATIAL CONTEXT IN WHICH INTERACTIONS ANDTRANSACTIONS TAKE PLACE AND USING THAT CONTEXTTO DERIVE GREATER VALUE FROM THE DATA WE HADPREVIOUSLY USED TO PLAN AND ANALYZE ACTIVITY.”

HADPREVIOUSLY USED TO PLAN AND ANALYZE ACTIVITY.”

hyper-localize marketing and engagement strategies:

gaining competitive

Allocating Resources

Allocating inventory

Retailers and brands must collaborate closely to ensure that the most in-demand products are either in-stock in certain stores or can be quickly shipped to locations.

differentiation and growth.