When it comes to retail stores, leading brands know that the golden rule is ‘location, location, location’. With the retail industry facing a decline, how can you determine the best location to maximise footfall into your store?
In the increasingly competitive digital space, it’s not enough to only run digital marketing campaigns and built-up personas. To fully optimise your business operations and improve margins, you’d need to draw insights from your customers’ digital footprints.
To grow our clients’ businesses across multiple key industries, we started asking specific questions about their customers and the factors that would affect their brand loyalty.
We investigated these personas by decoding their digital footprints and capturing their digital behaviours, location preferences, and other factors that could lead to their buyer’s journey. One of the striking points we discovered was, how the importance of store accessibility differs from one industry to another when it comes to acquiring customers.
Understanding the catchment area and mobility of your audience could also help chart future locations of your retail stores.
For example, grocery stores would have a much better return on investment (ROI) by focusing efforts on a 5km radius, as compared to a 15km radius that costs 9x more for only an additional 15% footfall. Hence, increasing the radius of the catchment area to attract more customers would lead to lower ROI as the same investment is not going to yield better returns.
This information is especially useful for both out-of-home (OOH) and digital marketing strategists, to better plan and allocate their marketing budget by geographically targeting areas where they should advertise.
Knowing that proximity does not play an important role as branding, and ‘appetite’ in increasing footfall, food and beverage operators could increase brand presence by improving customer experience. However, digital marketing campaigns, menu pricing, store ambience, and food presentation should also be customised to fit the palate of targeted customers.
Likewise, in the fitness industry, gym owners could then place more emphasis on locational convenience to optimise footfall just by understanding the mobility of gym-goers.
Analysing the purchasing power of potential customers of certain areas is also vital for making better pricing decisions. The use of a location planner tool that encompasses all these factors would be the best aid in the site selection process. Similarly, other retail businesses could also draw powerful business insights from the mobility of their customers.
These insights were drawn from the ADA Retail Business Insights Dashboard (Retail BID), a suite of solutions that provides actionable insights for retailers to compare their market share, customer behaviour, and footfall against their competitors by a geographic area.
The dashboard allows retailers to zoom in to specific areas to track changes in trends, consumer demographics, and personas to ensure the best targeting for marketing and sales strategies. The dashboard includes data from automotive, mall, and petrol stations.