{"id":3828,"date":"2014-11-12T08:19:30","date_gmt":"2014-11-12T16:19:30","guid":{"rendered":"http:\/\/www.esri.com\/about\/newsroom\/insider\/?p=3828"},"modified":"2014-11-12T08:19:30","modified_gmt":"2014-11-12T16:19:30","slug":"from-bricks-to-clicks-how-location-intelligence-is-changing-retail","status":"publish","type":"insider","link":"https:\/\/www.esri.com\/about\/newsroom\/insider\/from-bricks-to-clicks-how-location-intelligence-is-changing-retail","title":{"rendered":"From Bricks to Clicks: How Location Intelligence is Changing Retail"},"content":{"rendered":"<p><strong><em>Location analytics helps retailers breathe new life into old strategies.  <\/em><\/strong><br \/>\nOnline shopping is well understood. We don\u2019t only know how many people visit an online retail site. We also know that changing the size of a picture by a few pixels will generate more sales. We can even see if online shopping carts have been abandoned, what items people have viewed, and how long visitors have stayed on a page to calculate their interest in buying a product.<br \/>\nBut when it comes to knowing how many people shop at a physical store, traditionally we scratch our heads. We\u2019ve been trying to figure out those details for more than a hundred years. And don\u2019t get me started on \u201cdark shoppers\u201d\u2014customers that visit a store but don\u2019t purchase. Unlike online shoppers, \u201cdark shoppers\u201d don\u2019t leave an activity trail. There\u2019s been a lot of talk about how in-store beacons will change this, but the jury\u2019s out on how shoppers will respond.<!--more--><br \/>\nAs smartphones and tablets become a more integral part of the shopping experience, the boundary between online and offline shopping is becoming increasingly blurred. This is where geography and <a href=\"http:\/\/www.esri.com\/software\/location-analytics\">location analytics<\/a> can help. Geography brings together and allows us to analyze different data using location indicators, from the ping of an <a href=\"http:\/\/en.wikipedia.org\/wiki\/IBeacon\">iBeacon<\/a>, to a barcode scan, to where a coupon is used, to tracking anonymous shoppers in stores and malls.<br \/>\n<strong><em><br \/>\n<\/em>Do Stores Still Matter?<\/strong><br \/>\nWe are far removed from the traditional shopping world of taking purchases home from the store. But stores still matter. While many people start their shopping experience on their mobile device, according to a recent study, more that 85% of all customers still visit stores. Many times, the deal is sealed by a customer picking up and trying a product at a physical store.<br \/>\nBut consumers want the flexibility to get products anywhere, at any place and any time. Customers now have products shipped to their offices. They shop on the Internet and then collect their merchandise in-store.  They don\u2019t think twice about using pop-ups and kiosks.<br \/>\nTime frames for pickup and delivery are changing, too.  Shopping windows are extended outside of traditional store hours. In our modern, always on, mobile-first, digitally connected world, being successful at retail is hard. Very hard.<br \/>\n<figure style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/70784209\/Picture1.jpg\" alt=\"\" width=\"600\" height=\"472\" \/><figcaption class=\"wp-caption-text\">Optimizing store networks and synthesizing data can help store owners concentrate on changing formats.<\/figcaption><\/figure>\nThis blurring line between bricks and clicks means that store formats are changing. Larger stores are becoming hubs to smaller stores. They are repositories for online purchase returns, virtual warehouses, places to consult an associate for expert advice, and a venue for customers to spend time looking for one-of-a-kind items (because they have their regular, routine purchases delivered).<br \/>\nBut just as fast as today\u2019s store format and technology are changing, so is our ability to connect across business units and functions. By using location analytics we can make decisions based on insight and consensus by using geography.<br \/>\n<strong><em><br \/>\n<\/em>Honing in on 21<sup>st<\/sup> Century Data<\/strong><br \/>\nToday, every 21<sup>st<\/sup> century data set contains location information.  And with <a href=\"http:\/\/www.esri.com\/software\/location-analytics\">location analytics<\/a>, we are empowered with tools and techniques to exploit it. What does this mean?  Locating stores near a particular demographic is no longer the most important rule of site location. It\u2019s no longer a negative for 95% of your customers to live more than ten miles away from your stores. If you can connect with them, they will buy.<br \/>\n<figure style=\"width: 599px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/dl.dropboxusercontent.com\/u\/70784209\/Picture2.jpg\" alt=\"\" width=\"599\" height=\"529\" \/><figcaption class=\"wp-caption-text\">Shoppers are changing the way they think of physical and digital and stores are responding with innovative solutions.<\/figcaption><\/figure>\nWith Location Analytics, you can create a unified concept that includes store layouts, demographics, planograms and 3D visualizations within your <a href=\"http:\/\/en.wikipedia.org\/wiki\/Business_intelligence\">BI<\/a> and <a href=\"http:\/\/en.wikipedia.org\/wiki\/Customer_relationship_management\">CRM<\/a> platforms. Don\u2019t use fiction and anecdotes. Base your decisions on facts and validated insights\u2014customer profiles based on behaviors, true travel zones and real spheres of influence, all the way down to understanding who passes in front of your door, when, and how many. You can even analyze which direction customers go when they enter a store, including their dwell times in front of product displays and end-caps.<br \/>\nAs the multi-channel becomes more important, data complexity and size is only going to increase.  It is paramount that successful retailers get on board.<\/p>\n<p align=\"center\">&#8212;&#8211;<\/p>\n<p>Use location to create a \u201cdigital sandwich\u201d of layers containing insight, patterns of behavior and key facts. Discover new strategies. Breathe new life into old ones.  Try Esri <a href=\"http:\/\/www.esri.com\/software\/location-analytics\">location analytics<\/a> on for size.<\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","castos_file_data":"","podmotor_file_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[275862],"tags":[275882,241,276092,281,1161],"class_list":["post-3828","insider","type-insider","status-publish","format-standard","hentry","category-industry-focus","tag-business","tag-gis","tag-location-analytics","tag-location-intelligence","tag-retail"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>From Bricks to Clicks: How Location Intelligence is Changing Retail<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/insider\/from-bricks-to-clicks-how-location-intelligence-is-changing-retail\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From Bricks to Clicks: How Location Intelligence is Changing Retail\" \/>\n<meta property=\"og:description\" content=\"Location analytics helps retailers breathe new life into old strategies. 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