Identifying ideal locations for new outlets is a complex yet essential aspect of a successful expansion strategy.
With the advent of technology and the wealth of data available, franchises now have the power to make data-driven decisions, and its data that holds the key to success.
Expansion is rarely ‘one-size-fits-all’; what works in one location might not necessarily work in another. This is where location-based data steps in as the guiding light. At Serendipity2, we firmly believe that the right location can make or break a franchise’s future.
Understanding the importance of location data
Before diving into the practical applications of location data, it’s essential to grasp why it’s so crucial for franchise expansion – and there are a number of factors that really count:
Site selection
The process begins with selecting potential sites. Franchisors can use location data to create a shortlist of areas that match their target demographics, have suitable foot traffic, and present an opportunity to outperform competitors. By combining various data points, they can prioritise potential locations.
Demographic data
Location data allows you to understand the population in the target area. For instance, it can provide details on age groups, income levels, and cultural diversity, which is vital in tailoring products, services, and marketing strategies to the local population’s preferences.
Footfall patterns
Knowing the flow of foot traffic in a particular area is invaluable and helps determine how many potential customers pass by a location, giving an estimate of the exposure outlets will receive.
Local competition
Identifying competitors in an area is crucial. Location data can help assess the density of similar businesses and how well they’re performing.
Consumer behaviour
Location data can reveal valuable insights into consumer behaviour, such as peak shopping hours, preferred shopping channels, and shopping frequency. This information means operating hours and marketing strategies can be tailored, accordingly.
Data visualisation: The power of marketview
While spreadsheets may be an effective way to store data, they often fall short when it comes to making sense of it all. The real magic happens when you visualise that data, allowing you to detect patterns, see the bigger picture, and make sensible business decisions.
At Serendipity2, we’ve developed MarketView, a data visualisation, analysis, and reporting tool that brings location data to life and empowers franchise businesses to make data-driven decisions. This includes being able to view and analyse data at both macro and micro levels. The advantage of this is that your sales and marketing activities can be implemented in a highly targeted and localised way.
Visualising data also means franchises can dig deep into data to understand what’s working and what needs improvement. From product ranging and pricing to store promotions, merchandising, POS and media planning, as well as understand the geographical distribution of customer data. Maps, heat maps and reports mean everything can be planned an executed with pinpoint accuracy.
Using data to shape your growth journey
It’s no longer sufficient to rely on gut feelings or intuition when selecting locations for new franchise outlets. By harnessing the power of location-based data, franchisors can make informed, data-driven decisions that increase their chances of success.
Here at Serendipity2, we advocate for the use of location data, and importantly in using technology to bridge the gap between raw customer and market data to create actionable insights. With this power at your fingertips, you can expand your franchise confidently, knowing that decisions are backed by data.
In an era where data is abundant, franchisors who fail to tap into this valuable resource may find themselves at a disadvantage. If you’re on an expansion drive, remember that it’s not just about the location; it’s all about identifying the right location, and data should always be your trusted compass on this journey.
Case Studies:
Coca-Cola Europacific Partners: https://serendipity2.com/project/coca-cola-europacific-partners/
Costa Coffee: https://serendipity2.com/project/costa-coffee-market-research/
Glebe Farm Foods: https://serendipity2.com/project/glebe-farm-foods-persona-development/
