If your organization is experiencing continued success and growth, you’re on the inevitable track to start discussing site selection.
It’s a necessary process, affecting companies in every industry. And, if your leadership team makes an educated decision, adding a new site or store can further increase your return. But where do you start? How do you know where a new store will succeed? Where do you begin to decide on the smallest decisions, like how big a store should be?
Location analytics makes the process simple and intuitive. A great location analytics tool takes out the option of going with your gut, allowing you to completely understand the site selection process.
If you don’t have a location analytics tool that allows you to visualize data, then you might start looking to a government website to find demographic information. If you’re a children’s clothing store, chances are you’re looking for a location saturated with young families and good schools. And you might be able to find this information by do your own digging, but the information will most likely be a couple of years out of date.
So how can a good location analytics tool help you with site selection? We’ve broken it down into three things you must know when choosing a site. And the research is made easy with the right location analytics tool.
1. Finding Your Ideal Customer
We’ve talked about old demographics on government websites. It’s not something to invest your trust in when there are demographers surveying and updating demographics every day. A great location analytics tool will have those current and frequent updates.
You should be able to see the age of your customer, their income, and the size of their family. You can see precisely where your ideal customers live and place your location nearby. If your advanced mapping tool has a clustering function, you can group regions, cities, and neighbors by specific demographics. Then you can drill down even further to see exactly where your ideal customer lives.
2. Drive Time
However, drive time always factors in when you’re making a decision about where to place a new site. The distance someone will travel for a product diminishes as the price decreases. For example, a customer will drive much farther for a new car than a new pair of jeans.
So now that you know where your customers are, you have to think about your product. Do you need to place it in a strip mall near several family oriented neighborhoods? Or are you building a car dealership that you can build between a couple of big cities?
With location analytics, you can calculate the distance and drive time for your ideal customer. If your using an advanced mapping solution with a measuring tool, your task of finding drive time is made even easier. Taking it a step further, you can analyze your other locations to see how far your customers are willing to drive for your product or service.
3. Find Your Competitors
Being able to see where your competitors thrive is invaluable when choosing a new site. You can plot points, taking note of where your competitors are and deciding if you want to be close.
Maybe you want to target another neighborhood or city, or maybe you want to take some of their business by opening a new store across the street. Whatever the scenario, you can use location analytics to consider every possibility and make the most informed decision.
Have more questions about how location analytics can help with site selection? Let us know.