Rush Hour Retail: How Geolocation Impacts Customer Experience During the Holidays

The holiday shopping season is retailers’ peak period.

“Holiday shopping puts tremendous pressure on eCommerce platforms,” Radar CEO and Co-founder Nick Patrick told PYMNTS.

In the chaotic countdown to the holidays, it’s not just Santa’s sleigh that needs to run on time. Customers are armed with wish lists, demanding schedules and a relentless drive for convenience, and they’re in no mood for delays.

Enter geolocation technology, the unsung hero ensuring holiday shopping is smooth, fast and — dare we say — enjoyable.

“Customers are in a rush, and they expect fast, reliable experiences,” Patrick said. “Geolocation tools enable features like buy online pickup in-store (BOPIS), curbside pickups and precise delivery address validation, all of which are pivotal during this time of year.”

Still, the critical holiday shopping window, which can account for up to 30% to 40% of annual sales for many retailers, also brings unique challenges, including the rising cost of the geolocation services that underpin a seamless customer experience. These tools, which power store locators, address auto-complete features and address validation, are indispensable for retailers aiming to deliver seamless customer experiences.

“Geolocation is at the heart of delivering the right message or feature at the right time,” Patrick said.

When a customer places an online order for in-store pickup, geolocation technology kicks in, notifying the store the moment the shopper is en route. By the time they arrive, their order is packed, ready and waiting. This level of precision not only shaves minutes off the experience but also ensures that inventory is managed efficiently — a must during the holiday rush.

Yet as demand spikes during the holiday rush, so do the associated costs.

Geolocation Costs a Key Concern for Retailers

Radar’s data underscores the scale of the holiday challenge. The company’s API traffic increases by 5% to 10% during this period, driven by retail and non-retail verticals like payments, gaming and logistics.

Traditional map providers often employ unpredictable and potentially high pay-as-you-go pricing, Patrick said.

“We hear from customers spending six to seven figures annually on maps and geolocation services,” he said, noting that Radar “aims to be a more cost-effective solution. We try to be somewhere between 50% to 90% less expensive than alternative maps providers.”

In the age of instant gratification, retail is no longer just about selling products; it’s about delivering seamless, efficient and highly personalized experiences. At the center of this transformation is the savvy application of geolocation technology, a tool once seen as futuristic but now indispensable for retailers navigating today’s competitive landscape.

Geolocation isn’t just about knowing where customers are; it’s about knowing what they need when they’re there. Retailers use location data to push personalized offers, notify customers about store-specific promotions, and even tailor product recommendations based on regional preferences.

For example, Patrick said Radar’s technology enables in-store modes that activate tailored features — like personalized promotions — when a customer walks into a store. Retailers like Dick’s Sporting Goods and Jo-Ann Stores have implemented innovative solutions like in-store-only free shipping coupons, which help retain customers even when items are out of stock.

Turning Data Into Competitive Gold

Looking ahead, Patrick said he predicts a surge in interest in indoor location and micro-geofencing technologies. Radar’s latest developments include ultra-wideband-powered indoor positioning solutions with sub-meter accuracy, surpassing the capabilities of traditional Bluetooth beacons.

These technologies promise to revolutionize the in-store experience by enabling turn-by-turn navigation and hyper-personalized promotions based on a shopper’s exact location within a store.

At the store level, geolocation helps allocate staff more efficiently by predicting foot traffic patterns and peak shopping hours. These operational efficiencies translate into better service and lower costs, an advantage in today’s margin-conscious retail environment.

For retailers, the takeaway is clear. Geolocation technology is no longer a back-end tool but a strategic asset.

“It’s all about helping customers get in, get out, and get it right faster, smoother and more reliably than ever before,” Patrick said.