Retail Location Selection & Market Potential through Predictive Analytics
Increased competition and shrinking profit margins in the retail industry have necessitated a demand for sophisticated predictive analytics.
Organizations want to know what they can expect from a new or existing location over the long term, and what strategic investment is required to maintain a profitable market share.
Market Potential Analysis is used to forecast the potential sales for a location within a given trade area.
The forecast is based on the analysis of critical information, such as historic purchasing behavior, current market conditions, local demographics, consumer expenditures and competitive activity.
Retail Predictive Analytics can deliver a clear picture of who the ideal customers are and can show where to find more just like them.
Applying this technology help predict new opportunities, anticipate needs and proactively engage customers and prospects in winning CRM strategies that increase traffic, improve loyalty and drive sales.
Retail Predictive Analytics can determine:
Where to lease / buy property
What products to carry
What segments to target
How to position different brands in the marketplace
How a location will fare in the face of competitive threats
Which areas to target with offers / advertising
Applying Retail Predictive Analytics to comprehensive supply side data delivers valuable business intelligence retailers and location analysts can leverage to manage the business of capturing and holding profitable customers and ultimately growing market share.
Utilizing Retail Predictive Analytics, retailers can optimize location selection based on:
Employing Retail Predictive Analytics Retailers can:
Analyze the profitability of existing locations and predict the success of new locations and marketing mix scenarios.
Build comprehensive customer segmentation systems for effective consumer targeting, marketing communications and branding.
Analyze competitive activity, cannibalization and distribution channels
Deliver data-driven demographic, expenditure and behavioral analytics to refine product mix and pricing strategies.
Profile markets to maximize the effectiveness of media purchases, direct-mail response and cooperative as well as internet strategies.
Deliver customer segments and profiles retail marketers can understand and quickly leverage.
Join Retail Business Academy & Prosper