If your business has multiple locations, some will perform better than others. Knowing the reason why is critical to how you address the differences. Have you oversaturated a market? Do you need to expand? Is it time to close down a location? Are some locations reaching a different demographic? A MicroMarket analysis can help you answer these questions, so you can make informed decisions.
MicroMarket Analysis
Typically, a customer analysis happens on a nationwide or regional level. This gives you an in-depth view of who your customers are. But sometimes, you need to go deeper to see what’s really going on with your business. A few of our clients had unique challenges they wanted to understand and solve, so we created a process called MicroMarket analysis.
Whether you have 5 or 4,700 locations, this process looks at individual stores and provides a custom modeling report for each one. You can see how a location differs from others nearby as well as how it compares to the nationwide model.
Know Your Market Penetration
If you want to grow your business, the first step is to see what your market penetration is. Market penetration looks at how many customers you have in the surrounding area and how many look-a-like prospects are in the store’s footprint.
A MicroMarket analysis shows if you have saturated the market or if you have room to grow. Results can be overlayed on a map, giving you a visual of where you have the most opportunity. This information is helpful in knowing which neighborhoods you should or shouldn’t target as well as seeing if your store location can support the potential growth.
If you want to open a new location, a MicroMarket report can analyze your high performing locations and identify look-a-like areas that would be ideal for expansion. Do you have a location that’s struggling? This report can see if there’s enough demand in the area to support it. If your ideal customers are too far away, you may need to close or relocate the store.
Understand Who Your Customers Are
The more territory you cover, the more likely it is that your customer base will vary from location to location. When a MicroMarket analysis is run, you receive a customer profile for each location. You can see if your customer demographics change across the country. Do they have more disposable income in the northeast? Are they older in the midwest? Do you reach more singles at one location and families with young children at another?
Knowing who each location is attracting will help you create marketing that resonates with their audience. It will also help you know what items to stock at each store. One store might carry more shovels while another needs more kiddie pools. You don’t have to make those decisions blindly.
Customers like buying from companies that understand them, so use your modeling information to help you cater to your clientele’s needs.
See the Differences
Not all of your stores will look the same. They will have unique challenges for their location and customer base. By understanding their geographical needs as well as who their consumers are, you can make adjustments to help each location thrive.
If you want to see how your locations differ and what you can do to help them, give us a call. We love helping businesses grow by learning more about their customers and reaching better prospects.