For investors, every startup, every company that they consider for their portfolios is a potential risk and one that could either result in large gains or large losses. This is why data is crucial for investors and the more detailed that data is, the better the analytics will be in the end. Alternative data gives investors the visibility they need that isn’t coming from conventional data sources like financial statements and SEC filings. 

Alternative data helps investors mitigate risk, but what if we told you that an extra layer data could be added to help investors determine whether the company they are looking to invest in is worth the money and the potential risk? Location intelligence is that golden ticket. When combined with alternative data, they become powerhouse tools that give investors direct visibility and evidence to back their decision. Keep reading for our top three benefits of using alternative data analysis with location intelligence.

Sentiment analytics is often used to determine how a consumer base feels about a brand. This form of alternative data is very useful for investors because it gives them direct visibility into the overall customer experience. When sentiment analytics is combined with location intelligence, investors not only see the sentiment of the consumer, but also the audience that makes up a brand’s particular customer base. 

For example, let’s say that you are an investor who is taking a closer look at a retail brand that sells men’s shoes. You notice that customers generally feel good about this brand based on how their target market talks about the product via social media and product reviews. Using location intelligence to gauge the audience profile, you immediately notice that while they are heavily targeting middle-aged men who live close to their retail locations, their ads are not reaching the people who actually wrote about them online: millennials. 

As an investor, this immediately tells you that this retailer isn’t doing enough to engage what could be their largest audience; their marketing has been loose and slightly lazy, only targeting those that are in the direct vicinity of the brick-and-mortar stores. You rethink your investment because you realize that they’ve completely ignored an audience that would have made them the most money.

Imagine being able to know the ratio of customers who visited a brand’s brick-and-mortar locations who actually converted into paying customers. Would that make a difference in whether or not you decide to invest in them? For example, you might come across a luxury brand that has a storefront and generates a lot of foot traffic but does not see very many in-store sales. This indicates that the brand’s customers are more interested in looking at an expensive product than actually buying it. 

What does this tell you about that brand? Perhaps they aren’t doing enough to entice their visitors to convert, or maybe they don’t carry enough stock of the product that’s attracting customers. Another possibility is the in-store shopping experience. If a customer sees something they like online but want to try it on and purchase in-store, but the salesperson is not very good at customer service, the odds of that customer converting are slim to none. When location intelligence meets transaction data, then you have the actionable answers that you need to help you make the best investment decision possible.

One form of alternative data that is commonly utilized is web traffic. When coupled with in-store foot traffic data, this gives investors a 360-degree view of how well the brand they are looking into is attracting traffic to both their physical and digital doors. With this insight, investors can safely and accurately gauge what the future may hold for their prospective investment. 

We know how hard it can be to find high-quality foot traffic data that provides actionable insights. That’s why we use location intelligence to help brands get a true visual on not only how many customers are coming to their doors, but also what trends may be on the horizon based on their audience’s shopping behaviors and audience. 

For more information on how we can help you determine if an investment is the right decision for you and your company, contact us to speak with a location intelligence expert today.