Use Of Location Data For Better Customer Service



location dataThis is the environment where companies are facing intense competition in the industry. The only way to succeed here is to have competitive advantage. For this, companies must find out ways to gain competitive advantage. There are various areas where companies can work and polish the services. It can use various data to enhance customer experience and location data is one amongst them.

Location data, as the name suggests, is the data which belongs to location of the customer. It can be in two terms which are as follows:

  1. Geographical location
  2. Location data of the store

Location data enables the company to do target marketing.

Geographical Location

Data of geographical location of the customer is major factor which can enable company to enhance customer experience. With the use of data of geographical positioning of the customer, company can work on designing the product and services. This data will help the company in analyzing various things like:

  • Lifestyle of customer: With the lifestyle data, company can find out how a customer prefers to live; what all he needs to live life smoothly. This can help company in deciding what to produce and how much to produce.
  • Spending capacity: This helps to know the range of the product/services. Suppose, a customer to whom company is targeting resides in interiors of the country where earnings are not much. Then customer should not be targeted for high end products/services as he will not be able to afford that. For example, company like Apple considering this area as potential market, and produce quantity accordingly, then this is definitely going to fail. All the efforts of the company to promote the product in such area will be wastage. And people will also be dissatisfied as this will just waste their time.
  • Likes and dislikes: This is yet another factor. For example – Apparel company producing and promoting one piece dress in backward area where people are traditional and orthodox; and do not prefer modern dresses. Customer or say potential customer will not be happy and will have bad experience.
  • Availability of basic amenities: suppose Company is promoting TV, AC, etc., in the particular area, but there no continuous supply of electricity in that area. Then this will definitely irritate the customers.

Not allocating products/services as per the requirements of the customers of that area will hurt the sentiments of the customers. Also, it will make them feel that they are not important as the products are not as per their requirements; company is just creating the need of what is already produced. This will bring poor experience to customers.


geographical locationLocation data of the store

This is another important factor for enhancing customer experience. It was not that important in earlier days, where small shops used to be there. Customer just used to go there and ask whatever he required; shopkeeper used to provide that to customer. But, with the change in customer attitude and buying preferences, tradition is changing from small shops to big departmental stores and online shopping.

In big departmental stores, customer can go, move around and select the items needed to purchase. He can pick the necessary items to purchase, and get the billing done. This has enhanced the experience of the customer as he can take his own time to select the items. This has put up the customer at ease. But, to actually facilitate the customer, it is required that items are placed systematically and as per category.

For placing the merchandise in proper manner, store operators must have the location data. This will not only help in arranging the items systematically, but will also help in optimum utilization of space. Location data will enable the company to find out how they shop. This will help in further improving customer experience in the following ways:

  • Properly arranged merchandise, as per segments, will enable the customer to find the items easily. Like – clothing at one area, grocery at one side and in that also proper allocation can be done like fruits and vegetables, beverages, cosmetics, etc.
  • This will save the time of customer, as he will not require searching the items across the store and feel convenient at while shopping.
  • Even if customer will not be able to find something by his own, he take help from employees of the store. They will be able to quickly track the location from system and can help customer immediately.
  • By using location data, store operator can send information to customers about their most sought after product. This will help them with a knowledge management system of what new thing has come up. In turn, he will feel that he is important and get a personalized experience.
  • With the help of location data, company is in the position to know preferred products for a particular customer. It can send information based alerts to customers regarding significant changes in the related product. Companies can provide personalized offers and discounts to customers and can inform them through sms, email, etc. (beacon marketing).

The concept of using location data is increasing gradually. If this data is put to use meticulously, it can help companies in meeting ever-evolving needs of the customers and augment the customer experience.