Data is great for businesses. It gives insights into customer demographics, what products perform best, and staffing needs– to name a few. However, data doesn’t provide the answers to help improve your business’s higher strategic planning to boost sales and mitigate risks.
Companies who solely use weather data find it extraordinarily difficult to utilize because there are so many variables which makes data aggregation problematic. In the past several years, more organizations have looked at weather data to help them understand how the weather will affect or have affected the sales. Unfortunately, so few know what to do with it. In the end, many executives have an excess of weather data, but little understanding of how to improve their bottom line. Here are several reasons why solely using weather data is unsuccessful:
There Are Regional Variances: Temperature is absolute. How temperature feels is relative. For example, it’s the end of summer right now in the Mid-Atlantic region of the United States. If the temperature were to drop to 55⁰ in New York City, that would feel very cold to consumers and they would start buying outerwear and hot chocolate. However, if the temperature were to drop to 55⁰ in Fairbanks, Alaska right now, it wouldn’t have a significant impact on consumer behavior since that is the normal temperature this time of year.
There Are Temporal Variances: To that same end, if there was a high of 55⁰ in Philadelphia in September, consumers would feel very cold and look to purchase sweaters or fire logs. However, if the temperature were to hit 55⁰ in the middle of February, consumers would be reaching for their shorts as it would feel like spring. The temperature may be the same in the same location, but the time of year will create major differences in consumer behavior too.
Businesses that have weather data but have no idea how to translate that data into weather intelligence are encouraged to check out Planalytics’ business forecasting tools. Planalytics provides weather analytics, actionable intelligence companies need to manage weather’s impact on business and improve their bottom line.
Contact us today to learn more about why weather analytics matters.