A key performance indicator for nearly every business lies in growth and long-term success. While this goal is not new, it’s more complex to achieve than initially believed. Put into perspective, over $510 billion in real estate sales occurred within North America in 2018 — but closing in on those sale numbers is a difficult conundrum.
With a clear goal in mind, here are three ways commercial real estate data helps retailers expand:
1. UNDERSTANDING THE TARGET MARKET
When determining how and where a business should grow, the most important factor in the process is not finding the right real estate – rather, it’s finding the right customers.
The most successful real estate data development projects match offered services and products to consumer needs. Thorough research identifies ideal customers based on demographic factors such as income or marital status. However, demographic data often does not reflect the preferences and interests of prospective buyers. Two families who reside in the same neighborhood and bring home the same income are likely to have different spending priorities.
With detailed customer data, it is possible to develop a customized profile that identifies ideal customers, with insight into where they live and how to find similar customers to them. Based on that profile, a predictive model can be built to show developers exactly how many core customers live in a specific area. By predicting what each customer will be worth to the retail store or restaurant, this profile can forecast the revenue that a new location will generate – allowing retailers to analyze any location that is under consideration.
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2. SELECTING THE IDEAL SITE
Location is often considered the most important element to the success of a commercial property. Design and construction of commercial real estate is a very difficult task, and mistakes are quite costly. In order to make expansion profitable, retailers need to take into account many factors. Real estate data helps these clients choose the optimal location for the space.
Considerations must include the needs of the retail business, such as parking, storage space, display windows, and deliveries. The wrong fixation could greatly impact the business’ success. Incorporating location intelligence to the site selection process provides retailers with high-quality, relevant, and actionable insights.
3. ANALYZING THE COMPETITIVE MARKET
A thorough understanding of a retailer’s competition, especially the habits and interests of their customers can provide them with valuable insights for a dynamic competitive advantage. Additionally, 96% of business executives agree that competitive intelligence is critical to business success.
Understanding the moves competitors are making can help retailers identify threats to their own business. The competition could be making a move to acquire some of their own customers, with a persuasive marketing campaign or new product offerings. Early identification of threats can be applied to forecasting and strategic planning, helping to counteract the competition’s overall strategy.
Location intelligence can help a retailer choose the best location using a variety of analyses that are often unavailable within other types of data, thus increasing the likelihood of success at the new location — and improving sales, revenue, and ROI.
Location Intelligence for Real Estate
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