Trade area modeling, a trusted practice in the retail and restaurant business for site selection and sales forecasting, is in the early stages of a major revolution. It’s not the models themselves that are changing — it’s the underlying data.
The next step in the evolution of trade area modeling is real-world mobile data, which allows businesses to analyze customers’ actual behavior, instead of making educated assumptions based on past actions or proxies.
- Mobile technology is powering trade area modeling methods that are more accurate, more scalable, and less manual
- Trade area and site characteristics affect more than 50% of a retail location’s revenue
- Better understand in-store behavior and what happens once a customer leaves with the marriage of beacon technology and mobile data