As retail based businesses know, IT’S ALL ABOUT LOCATION, LOCATION, LOCATION. The location of your store determines how much revenue a store can drive, how competition impacts your income, and maximizing your store for optimal yield.
Retail businesses use location analytics to decide on their existing clients, where they live, and who they look like; from there, it’s about determining the geographical pockets of people who look like their customers. This way, businesses ensure that as they continue to open new stores, they are surrounded by future potential clients whose look-a-likes have previously purchased their offering.
You can take this further and layer in a competitive location analysis by using the methodology above on identified competitors. This gives a business owner a sense of the optimal areas. To open new stores and how their competition will impact revenue. In addition, this also shows businesses where there are deserts of no competitive players to your offering.
Taking this to the final step. If enterprises use both third party sources from the above and first party transaction data, it is even possible to predict the future revenues from each new location. This allows owners to pick potential sites based on revenue opportunities or competitive pressures. Vado Analytics, can your business open its next store. Need help? Shoot us a note!