Revamping market research methods with Big Data
Written by Rachel Ann Kreis ·
Traditional market research has been made of up tireless hours of surveys, people counting on the street and generic demographic data that does not provide enough information to understand the market dynamics of a territory. On top of being costly, these market research tactics are so time-consuming that it is challenging to find the time for deep analysis. This is not the case anymore with the development of Big Data processing techniques, where strategic insights can be extracted with only a few mouse clicks on the computer.
Are you ready to discover how Big Data has become the driving force behind the metamorphosis of market research? We are going to tell you all about it below:
Integrating Big Data technology into market research methods
Retailers on high street everywhere are well aware that finding an adequate location to set up shop is no longer enough—they need the best spot. To do this, many have turned to expensive consulting firms with large market research teams to pinpoint the most strategic neighbourhoods to open their stores. But what if this was no longer the case?
The need for traditional retailers to start applying data to their strategies has become blatantly apparent over the last decade. Fortunately for them, while the emergence of new technologies has appeared to possibly “threaten” their business models, the evolution of others has equally come to redeem them. One of these technologies is Location Intelligence. Deeply rooted in Big Data, Location Intelligence technology is not only capable of analysing many types of data at once but also making this data geographically relevant. This is what has become a major game-changer in the world of market research as it makes the investigation of a new territory an instantaneous concept. With Location Intelligence, expansion teams and researchers can immediately obtain key information about an area being evaluated such as income levels, footfall traffic, spending habits and much more.
North American pizzería chain, Papa John’s, is one of the forward-thinking franchise chains who has integrated Location Intelligence technology into their expansion strategy. This world-renowned, pizzeria giant just celebrated the opening of their 400th store in the United Kingdom alone. Wondering how they are so successful at attracting and convincing franchisees to invest in their brand? The answer is simple: by supporting them every step of the way, from the site selection phase to operations and maintenance. As John Mott, Development Director at Papa John’s states in an interview last year: “We are constantly focused on ‘raising the bar’ in every aspect of the franchise. To achieve this, we need the best people. We ensure our staff are trained, committed and accountable to ourselves, our customers and partners. As well as a great business model, these are key ingredients for success.”
See how Papa John’s keeps their retail partners happy with special promotions for every store:
400 stores = 400,000 slices of free pizza! We’ve been giving away free pizza nationwide all this week – there might just be a few left with your name on! Get in touch with your local Papa John’s today! ???? pic.twitter.com/J2MBCK0815
— Papa John’s UK (@PapaJohnsUK) 3 de agosto de 2018
Boosting the ROI of retail networks
Up until now, we’ve highlighted how Location Intelligence can help retailers to strategically open new establishments with Big Data insights. Now it’s time to see how it can accelerate the market research process to enhance the performance of an already-existing chain of stores. Location Intelligence is capable of providing crucial information on the unique market contexts of a specific area. This is what allows professionals from the sector to not only optimise the performance of the different stores in the network but also launch targeted marketing campaigns for each point of sale. Let’s see an example:
Imagine that you own a restaurant chain with 10 stores open to the public. Looking at the sales data from the 10 existing establishments, you notice that the restaurant on Oxford street sells extremely high quantities of fish and chips. Through a deeper dive into the data, you also discover that the people who are ordering that particular dish are between 20-25 years old and study in the area. Using Location Intelligence technology, you take a look at the communities of people who live around your other establishments and see that there are high concentrations of more university students fitting the profile who frequent the areas of two of restaurants. You decide to launch a targeted geomarketing campaign and advertise with posters on bus stops right in front of the two other universities. Your posters feature the fish and chips dish and explain that the restaurant is only a “five minute” walk away. Can you picture what happens next? That’s right, you successfully direct the footfall traffic of hungry, university students to your restaurant. While they’ve got full bellies, you’ve got full cash registers, making it a “win-win” scenario.
A well-known tequila brand called Tequila Herradura is a model example of a brand using Location Intelligence to launch segmented marketing campaigns and boost sales. By studying the populations of people surrounding the retail supermarkets where their product was sold, they determined which profiles were more inclined to purchase hard alcohol and launched a push marketing campaign. The consumers matching the profile of their target market received a mobile notification from them encouraging them to visit the supermarket retail store nearby for a discount on their products. And, most importantly, what were the results? The brand reported a 23% increase in visits to the retail supermarkets where the campaign was launched.
The future of market research tactics starts today
As we’ve been able to see throughout the article, Location Intelligence has completely changed the methodology behind market research as we know it. This new way of applying Big Data to business strategy is what is turning the tables for retailers, making high street blossom once again. Not only can it help them to continue growing their businesses confidently in a time of uncertainty but it can also improve their bottom lines.
The time to start making smart moves when it comes to location is now. Ask for a demo and discover how Location Intelligence can power your retail business and change the way you think about market research.