For successful branch expansion strategies and site selection plans, evaluating your business model according to the potential market needs is crucial. Location and foot traffic analytics is the most effective way to achieve this.
In this article you will learn about:
- What is location intelligence?
- The role of location data in developing a successful business expansion strategy
- 5 Benefits of using location intelligence for your branch location strategy
- How to use Location intelligence for expansion strategies
- In conclusion
What is location intelligence?
Location Intelligence (LI) is an advanced data analytics technique. It uses geographic information to uncover patterns, trends, and relationships in data. This technique harnesses the power of geography to gain insights from data. By combining spatial data with other business data, Location Intelligence provides valuable insights that can drive better decision-making.
At its core, LI involves three main components: data collection, data analysis, and data visualization. These components work together to enable businesses to understand complex relationships between different data points.
We recommend you reading our complete guide: How Does Location Intelligence Work & Why Do You Need It?
The role of location data in developing a successful business expansion strategy
Location data bring businesses a competitive advantage for business branch expansion strategies. Why? This data type helps visualize how local market dynamics have changed over time.
Data analysis also reveals new opportunities and insights in real-time. These may not be evident through traditional or “one-dimensional” data sources.
Location analytics provides insights into whether a business will have the expected results in a given area. Mapping key area demographics can help pinpoint locations with a high chance of having a need for your products or services. This can be a useful tool when expanding your business.
Also, you can reduce the likelihood of failure by using location analytics to establish a market area profile. Location data insights can help you identify the best alignment between your offer and your target market’s needs in each area. This analysis can give you a competitive edge and help you avoid costly mistakes.
This guide will be very useful for you: Location Intelligence Software: How to choose the best one?
5 Benefits of using location intelligence for your branch location strategy
Location intelligence can help you determine the best growth strategy beyond your existing market. Using location data in your market research gives you access to valuable qualitative and quantitative information. This data can provide you with a broader context about a given area.
Location intelligence enables businesses to make informed decisions when selecting new branch locations. It uses data insights to identify areas with the highest potential for success. This leads to more strategic expansion and reduces risks associated with new branch openings.
Enhanced customer targeting
Location intelligence allows businesses to tailor their offerings and marketing strategies to fulfill the needs of their target audience. To do this, businesses need to understand the demographics, preferences, and behaviors of potential customers in certain areas.
This results in better customer engagement and increased sales.
Improved competitive advantage
Location intelligence helps businesses analyze their competitive landscape. This helps them identify market gaps and underserved areas. Establishing a strong presence in these regions before competitors gives businesses a competitive advantage.
This proactive approach can lead to a more significant market share and a more substantial brand reputation.
We analyzed the mobility and foot traffic between Walgreens and a CVS pharmacy. Do you want to know what we found? Read the case study
Location intelligence helps to balance real estate costs with potential foot traffic and visibility. This ensures businesses select locations that offer the best return on investment.
The result is a reduction of unnecessary expenses while maximizing revenue potential.
Streamlined workforce management
Location intelligence provides insights into local labor markets. Location data helps businesses understand if talent is available and suitable for their new branches.
This guarantees that a skilled workforce is in place to support the growth and success of the expanded business.
How to use Location intelligence for expansion strategies
Location intelligence can be a powerful tool for businesses looking to expand. This includes B2B & B2C companies, retail stores, bank branches, and other financial institutions.
Using location data, you can strategically select locations that:
- Maximize profitability
- Improve customer reach
- Offer long-term growth
These can be accomplished by analyzing data points and considering various factors:
Identify your target market
Use demographics, consumer preferences, purchasing behaviors, and market research to define your ideal customer. Location intelligence helps you find areas with high concentrations of potential customers, focusing your expansion efforts on the most promising regions.
Assess the competitive landscape, identifying competitors’ locations and market share. Discover unmet demands or market gaps to determine new branch opportunities in local and international markets.
Estimate ease of access to potential branch locations, factoring in transportation infrastructure, traffic patterns, and parking availability. Easily accessible sites for customers and employees contribute to successful branches.
Optimize real estate costs
Identify areas with optimal property prices, rental rates, and local regulations using location intelligence. Balancing costs with high foot traffic and visibility ensures a strong return on investment, helping you reduce costs and increase sales.
Assess the local workforce
Analyze the local labor market to guarantee the availability of skilled and reliable employees. Location intelligence offers insights into education levels, skill sets, and average wages, informing your staffing decisions.
Mantain track new branch performance with key performance indicators (KPIs) and established benchmarks. Identify underperforming branches and factors contributing to their performance to make data-driven decisions about improvements or closures.
Integrating your marketing strategy, including social media, with location intelligence enables you to enter new markets, target small businesses, and fuel international expansion.
By harnessing location intelligence for market expansion, you can offer the right products or services, increasing your appeal to potential customers and ensuring long-term success.
Does location intelligence analytics work for retail expansion strategies?
Short answer: yes! The role and importance of location analytics in a market expansion strategy cannot be overstated.
It provides valuable insights for retail brands looking to grow their presence and increase their market share.
By incorporating location analytics into your retail store expansion strategy, you can:
- Make informed decisions.
- Optimize costs.
- Stay ahead of the competition.
Location data is revolutionizing the way businesses develop their branch expansion strategies.
It can help decision-makers assess market dynamics and identify the best places to set up new locations. This data helps marketing teams create better campaigns. It also enables them to provide a better in-store experience. The result is clear: An increase in customer loyalty and a boost in revenue potential.
Find the perfect locations for your next opening branches. At PREDIK Data-Driven, we have more than 14 years of experience helping the most important companies with their expansion strategies.