New Look at Geolocation Helps Physical Stores Compete in a Digital World

Customer expectations are perpetually evolving — meaning the experiences they are offered should, too.

Innovation is the key to staying ahead, especially within the digitally transformed retail landscape. Against that backdrop, geolocation technology, once a novelty, has now become a powerful tool for enhancing customer experiences in retail.

This isn’t the geolocation of a decade ago; it’s a sophisticated science that merges the digital and physical worlds, offering unprecedented precision and personalization.

Unlike traditional geofencing, which triggers notifications within a mile radius, today’s technology can pinpoint locations “down to the store or even parking lot level,” Radar CEO and co-founder Nick Patrick told PYMNTS.

“Location can be a really important tool to deliver seamless and personalized, right place, right time customer experiences,” Patrick said, noting that “a lot of the apps we use, the app experience doesn’t change based on where we are in the world.”

But as retailers and businesses embrace innovative geolocation solutions, that homogenous commerce experience is set to be transformed.

Geolocation Innovations: Transforming the Retail Customer Experience

Radar, a geolocation technology company, has positioned itself as an all-in-one location platform. According to Patrick, Radar combines a geofencing platform for building location-aware app experiences and a maps platform for creating store locators and address autocomplete features. The dual approach allows retailers and eCommerce companies to enhance the customer journey at multiple touchpoints.

For instance, when a customer enters a particular retail store, that retailer’s own app can transition to a “store mode,” welcoming them and displaying relevant information such as loyalty points or scan-and-pay options, Patrick said. This creates a tailored experience that differs from what the customer sees at home.

“The technology’s ability to offer region-specific or store-specific offers enhances personalization,” he said. “From the business’s perspective, that improves conversion rates, it improves app engagement, it improves customer retention.”

One of the more underrated benefits of geolocation technology is the wealth of data it generates.

Read also: Radar CEO Sees Geolocation Driving Future of Digital-Physical Commerce

The data can be invaluable for retailers’ marketing efforts, enabling them to deliver precise, location-based offers and messages. However, as Patrick noted, consumers are increasingly discerning about sharing their location data. They demand value in exchange for their data and prefer transparent and thoughtful data collection practices.

To address this, Radar focuses on delivering valuable user experiences that justify location data collection. For example, in curbside pickup scenarios, location tracking is only active for a short period, ensuring the order is ready precisely when the customer arrives.

This not only enhances service quality but also respects the customer’s privacy by minimizing data collection and ensuring that location data is used responsibly, aligning with consumers’ expectations for privacy and transparency, Patrick said.

“There’s a lot you can do with just ‘when-in-use’ permissions when the app is open,” he said.

The Future of Location-Driven Customer Experiences

While retail is a primary focus, geolocation technology has applications across various industries. In sports gaming, for instance, location verification ensures compliance with state regulations for apps like FanDuel and DraftKings. The same technology can prevent location spoofing in logistics and retail, Patrick said, adding that this ensures offers and services are correctly targeted.

Looking ahead, he highlighted that two trends stand out in the realm of geolocation technology: vendor consolidation and micro-geofencing. Retailers are increasingly seeking to streamline their tech stacks, reduce costs and simplify operations. All-in-one platforms, like Radar’s, address this need by offering comprehensive location services that can replace multiple tools.

Micro-geofencing represents another frontier. The technology goes beyond detecting if a customer is in a store; it can determine their exact location within the store. This capability could revolutionize in-store navigation, helping customers find specific products and even providing turn-by-turn directions.

Ultimately, geolocation technology is evolving to become a vital component of a comprehensive customer experience strategy. By integrating sophisticated location-based features into their apps and services, retailers can provide personalized, seamless and efficient experiences that delight customers and drive business value.

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