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Location intelligence boosts a German retailer's fuel volume by 20%
A German fuel retailer was exploring data and analytics approaches to help them understand how to get ahead in a highly competitive fuel market. The chain had a particular interest in location intelligence data and how it could be utilized to optimize their fuel pricing strategy and improve their overall performance.
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Client situation
A European fuel retail chain was interested in accessing location-based insights to validate and optimize key competitor assignments and micro markets used for fuel pricing purposes.
Existing competitor pricing configurations were loaded into Kalibrate Location Intelligence (KLI) alongside a variety of third-party datasets including demographic, traffic, connected car, and mass mobile data. Local market assumptions were interrogated using data, and associated pricing rules were redefined. As a result, sites achieved an immediate uplift in sales, by as much as 20%.
The Kalibrate approach
Kalibrate worked in partnership with the client’s fuel pricing team to carry out a micro market analysis of their fuel sites.
Using Kalibrate Location Intelligence, site locations and local competition were mapped, alongside the competitors used as price markers in the client’s pricing strategy. This was compared to mobility data that identifies customer home and work locations, and customer journey points that show where they stopped before and after visiting the client’s sites.
The analysis showed that some competitors the client had chosen to price against had no cross over in trade area or customer base and were therefore not in direct competition with the client’s sites. Alternative competitors were identified that did serve a percentage of the client’s customer base but were not originally included in the pricing strategy. Recommendations were made to adjust the client’s fuel pricing strategy based on the suitability of competitors for use as price markers.