Traditional Channel: How to Increase Profitability?

Determining if the highest possible profitability is being obtained at each point of sale and if the establishments with the greatest billing potential are being reached, is part of what can be solved with geomarketing solutions.

Wednesday, April 14, 2021

Through Big Data management techniques, it is possible to collect, validate and analyze large volumes of information for all types of points of sale, such as convenience stores or grocery stores that operate in Central American countries.

Analyzing the pedestrian influx in stores, based on georeferenced information and on the real mobility of consumers to infer the concentration levels of people in places identified as convenience stores, supermarkets or grocery stores, is the first step to measure the commercial potential that it has each of these establishments.

Heat maps that show the pedestrian influx in a given store, the traffic density of the area, the sociodemographic data of the people who visit each point of sale, the time they stay, the frequency with which they visit and what they want to buy, It is information that is currently available to any city in the world and that is used by companies in the retail sector to optimize their operations.

This type of Business Intelligence solutions allow answering questions that are on the order of the day in the minds of managers and sales directors of the traditional channel, the following being the most common:

  • Are we making the most of each one of the points of sale in which we have a presence? 
  • Are we reaching all the establishments we really should be in? 
  • Are we selling everything that we could sell in each of the points of sale where we sell our product? 

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Analyzing the offerings of a supermarket, department store or convenience store and examining what type of consumers frequent those establishments is key to establishing which chains a company's products should be present in to increase their profitability.

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Geomarketing: Real Success Stories

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Making decisions based on models that collect sociodemographic information of the area, characterizing the commercial environment of the possible locations of new stores and including data on the tastes and preferences of potential customers, reduces the risks of investments in the opening of new points of service.

The work teams and "data driven" companies, organizations that are based on the efficient use of data as the axis of all their processes, have found in the Commercial Intelligence and Geomarketing solutions, a possibility to reduce the risks in new investments associated with expansion plans and opening of new stores.