JS Cardinal, Director of Data Solutions, ADA
(4 min read)
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.
What We Found:-
- Less than 40% of shoppers are willing to travel more than 5km for their groceries; and 50% are only willing to travel up to 3km
- Fitness enthusiasts may not like going the distance after all; fitness centres that are within 5km of their office are preferred by more than 50% of gym goers
- When it comes to running domestic chores – like filling up their cars – most people prefer convenience over brand accessibility; nearly half are regulars at the local petrol station within 5km of their office
- For big financial decisions like purchasing a car at the dealership or making financial investments at the bank, 80% are willing to travel up to 11km as brand trust play a key role
- Food and beverage businesses could capture groups as far as 16km, especially in Malaysia, where food culture is paramount
- Birds of a feather flock together – this is especially true for country club members who travel more than 20km to socialise and unwind
What does this mean to your industry and business?
Building your digital marketing strategy is now easier with these data points.
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.
The ADA difference
Through ADA’s business intelligence tools and capabilities, you will be able to know exactly who your customers and potential customers are. We’re able to go beyond their demographics to which apps they use, what time they shop, which areas they frequent, and how they get around and much more.
We can also help provide insights through the Geographic Information System (GIS) to help you tap into new and returning customers. It lets you gain insight from geo-location data to know where your customers live, how far they are willing to travel, to gaps in your competitors’ market space that you can fill.
Attain actionable insights from footfall analytics to find out peak times for specific stores, differentiate regular and seasonal customers, and even drill down to which type of customers come in at what time. Deep diving into data is crucial to the customer experience as it provides a greater understanding of average time spent, conversion rates, and if they are actually willing to walk into your store.
If you are confused on where you can get started, ADA has the capability to integrate data with Xact, our Data Management Platform (DMP) that carries over 280 million consumer data sets across Asia.
By combining our business iInsights tools and marketing dashboards, you are able to make sense of all that data and understand consumer behaviour to reach out to them through our Acquisitions model, where advertisers only pay for every successful acquisition of customer and ADA bears ALL the media risk.