Liza owns a chain of stores across London. She’s just finished her review with all the individual store heads. The sales were looking good overall. However, Dane, the store manager at the Oxford Street market said he reached the maximum potential and might not grow any further. The team decided to put in additional marketing spend to attract more customers. While Liza approved the spend, there were a few questions troubling her regarding her decision.
- How do I know what is the maximum potential for a given store?
- Am I unnecessarily spending more marketing money on a maxed-out store?
- How do I decide which store gets what percentage of marketing budget?
- If there is more potential, how do I attract more customers?
- How can I ensure my marketing money has more returns?
Liza is not the only one having these questions in mind. There are several factors that drive the potential of a store. Sales in each outlet are driven by micro-market dynamics which would be dependent on multiple factors such as demographic, customer preferences, and competition. Stores are tagged to be of a certain potential based on inquiries and sales. This could be different or not aligned to actual market potential. Additionally, there is heavy dependence on Store Managers on attracting footfall and sales conversion. In most cases, it is difficult to influence the footfall centrally.So what is the way out?
Exponentia.ai provides a clinical, sophisticated and analytics-driven approach to answer all the questions and give even more insights to grow the store faster and of course outclass the competition.Catchment Area Analysis – Know the potential
So, the question here is what is the potential of Oxford Street Market? It is beyond counting the sales and footfalls or seeing the trend over the past several quarters. Exponentia.ai analyses the micro and macro market dynamics to define the potential. Broadly, here are the finer points we study:
- Macro market trends to understand the spending capacity of individuals
- Number and type of stores that exist in the same region to ascertain the business that is happening in that area
- Demographics and the customer preferences to know the spending potential
- Store specifics, such as footfall and sales trends
Catchment Analytics – Our Analytics Engine analyses all these points and determines the true potential of a given store. Not just that, the analysis also helps the store manager to define the catchment area to execute appropriate marketing promotions. The catchment area is the radius from the point where the store exists. This forms the place where the majority of the buyers reside.What can I do with this information?
These insights can help you take the right decisions that can improve your operational and marketing efficiencies. Eventually, grow more and grow faster. Here are some of the decisions you can take:
- Understand the true sales potential of a store
- Divert budgets and staff from low potential to high-potential stores
- Optimize your marketing spend in high-potential stores with effective below the line marketing activities
- Analyse the visitor data and create persona based messaging to improve the footfalls and in-store conversions
- Maximize the returns on your marketing and campaign spend
Read “Grow Your Retail Store Sales” to know more about how to increase the footfall and in-store conversions.