How the decline of product/price made location intelligence for supermarkets even more valuable

Location intelligence for supermarkets is more important than it’s ever been. 

With supermarket chains facing pressures and challenges from a variety of different sources, this software can really make the difference when it comes to maintaining profitability. 

Here, we’ll investigate why price and product are waning as key profitability metrics and look at how location intelligence for supermarkets can help your brand go further. 

Why product/price don’t matter like they once did 

The retail landscape has changed fundamentally over the past few decades. 

There was a time when the key factors that typically swayed customer purchasing decisions were simply the quality of products and the price they retailed at. 

However, a combination of globalisation and the advent of the digital age have made it harder to compete on these metrics. Social media and online reviews have also given customers scope to record and review the quality of their experiences with supermarkets. 

Due to these factors, customer experience has now overtaken price/product as the defining force that determines profitability and competitive advantage. Steve Cannon, CEO of Mercedes Benz USA, even went so far as to state that “customer experience is the new marketing”. 

According to recent research: 

  • 88% of customers would purchase from companies with exemplary customer service over those with the most recent/innovative products 
  • 69% of customers switch brands as a result of real or perceived poor service, compared to just 13% who switched due to product quality 
  • 86% of customers are willing to pay more in order to receive a better standard or service, but only 1% currently feel that brands are meeting their expectations on a consistent basis 

This final statistic indicates that there is still plenty of scope for brands to optimise their customer service in order to gain a competitive advantage. 

Use location intelligence for supermarkets to improve your customer experience 

Location intelligence software will give you a vast range of options for enhancing customer experience at your supermarket. Here are just a few examples: 

  • Make sure the branch type (e.g. convenience store vs superstore) and products you choose for specific locations reflect local needs 
  • Select central, convenient locations that make it quicker and easier for customers to visit your store 
  • Decide which facilities (e.g. parking or on-site cafe) each of your supermarkets should have in order to optimise profitability while streamlining costs 
  • Choose brand messages and colour schemes that make customers feel welcome and encourage them to purchase using social media sentiment analysis 
  • Redefine your store layouts to make shopping a more convenient experience by analysing customer flow using indoor location intelligence 
  • Reduce delivery times and costs by using location intelligence to define your distribution centre locations and delivery routes 

With price/product declining in terms of importance and customers crying out for better experiences, there has never been a better time to get started with location intelligence for supermarkets. 

Optimise your supermarket services and achieve a new level of profitability; sign up for a free Periscope® demo today.