Using Mobility Data to Stay One Step Ahead

This article is brought to you by Arity. 

Retailers are familiar with the pattern: As fuel prices go up or down, consumer behavior changes. As behavior changes, retailers adjust accordingly.

But how can retailers know what sort of adjustments to make and when to make them? That’s where mobility data comes in. Mobility data is an emerging source of consumer-behavior insight that may provide earlier visibility into emerging behavioral trends and adds context to what's happening in stores, according to Anthony Johnson, solutions engineer at Arity, a mobility data and analytics company.

“The amount of lead time varies by industry, geography and behavior being measured, but the strategic value is acting when consumer behavior begins changing, not after revenue is already impacted,” said Johnson.

That context matters because a decline in visits may have different underlying reasons. “If every convenience retailer in a market is seeing fewer trips, the issue may be broader economic pressure,” said Johnson. “But if one location is losing visits while competitors nearby are holding steady, that points to a different kind of problem—and a different response.”

“Sales data, POS reporting and many syndicated retail datasets are inherently lagging. They require a completed purchase before they generate insight. By comparison, mobility data can show declines in trips, stop frequency, visitation patterns and traffic flow as they are developing,” said Johnson.

For example, if mobility data indicates that price-sensitive customers may be visiting less, an operator could launch targeted offers, said Johnson. 

“Mobility data could also show certain days and times when fewer trips happen, helping retailers make more informed staffing and inventory decisions based on expected demand,” he said.

That kind of insight can help retailers manage both sides of the equation: protecting demand with smarter offers and controlling costs by aligning staffing and inventory to real-world traffic patterns.

Mobility data also often shows differences in particular areas, creating an opportunity for multisite retailers, according to Arity.

“A convenience retailer may identify markets where visitation remains resilient and shift promotional spending toward those markets while using defensive offers in areas showing early signs of pullback,” said Johnson.

Johnson said Arity’s retail-focused products like Road Traffic Analytics can help retailers understand site visitation trends, changes in traffic volume, competitive visitation patterns and trade area performance.

That data can provide retailers with context to help understand the difference between location-specific issues and macroeconomic challenges. For example, a retailer could compare visits at its stores to visits at competing locations, according to Johnson. “During periods of rising gas prices, this distinction becomes especially important,” he said. 

When you know what kind of challenge you’re facing, you can adjust your business plan to respond appropriately. “If one retailer is outperforming competitors despite declining mobility, the data may reveal an opportunity to create pricing, promotional or operational strategies that better resonate with consumers,” said Johnson.

This is the second in the two-part article series brought to you by Arity. Read part one to learn more about how mobility data can help retailers understand changing customer behavior in near real time as market conditions evolve.

Consumer Insights