Location data is integral to improving the customer experience, but most firms aren’t leveraging location data enterprise-wide, and face many challenges fleshing out the potential that location technology offers, according to a new report by Forrester commissioned by location technology company Radar.
The report found that location data improved CX (customer experience) and customer loyalty and led to higher customer satisfaction. It also found that better CX means creating hybrid digital/physical experiences that are more personalized.
But brands need to demonstrate to customers the value of sharing location data. Nearly half of respondents reported permissions prompting as “challenging” or “very challenging.”
Forrester surveyed 213 customer experience leaders at regional and national restaurant brands in July and found that:
Improving CX and increasing revenue are top priorities. Improving the customer experience is the top priority, with nearly nine out of 10 respondents reporting it as a critical or high priority for their companies.
Companies are prioritizing increasing customer lifetime value (79%) and the average order value (78%). To achieve this, more than three-quarters of respondents’ companies are accelerating their shift to digital business (77%).
Companies are also transforming CX using location data to integrate digital and physical experiences. More specifically, companies are focused on providing location-aware experiences (68%) and integrating digital and physical experiences (67%). These hybrid experiences include more seamless order-ahead-and-pickup experiences (62%) as well as creating hybrid in-store experiences.
Their progress, however, is slower than some would guess. Only 19% of respondents report their companies use location technology enterprise-wide.
But the good news is that companies are aware of their shortfalls. Some 55% of respondents said they will face “lost revenue” if they don’t use location technology more effectively than today.
“It’s possible for all businesses to build the future of location now. It’s also imperative,” said Radar CEO Nick Patrick.”Failing to invest in location infrastructure — or failing to maximize their current investment in location — costs businesses both in terms of lost revenue and wasted spend.