Any astute business person realizes that in order to be successful they need to know their customers. Successful businesses are good at targeting their customers’ needs and providing them. It is an important and necessary component of any business plan to optimize their products and services in the best light. It has often been said that location makes all the difference. For example, you wouldn’t put a pizza parlor in a remote area unless your demographic specifically points to pizza lovers in that area.
Retail site selection can be a science in that you are dealing with statistics and forecasts that may or may not pan out for you. A good understanding of your audience can help. Statistical data from census and geographic reports are considered demographic in nature. Geographic information is essential when you have a business that depends on the terrain or weather patterns.
Mapping it Out-Territories
When you start to research the area where you plan to have your business, you can use demographic data such as school and business information to scope out potential customers and competition. Sales territory mapping software is available to help you figure out where your potential customers are, what competition you have in the territory and focus in on what you need to do to win customers.
You may also use demographic data trends to understand what types of businesses have worked in the past and what may work in the future.
The Perfect Location-Trigger Points
Demographic data can help you focus in on trigger points that drive customers to your business. These trigger points are: customer expectations, customer needs, traffic and stability. You can use demographic data to get an overview of customer expectations. Customer needs will avail themselves when you study existing marketing reports. Traffic is a bit more elusive to uncover but can be done. It will require at times a physical presence in the area and notes from area businesses.
An important factor which some businesses ignore to their peril is the stability factor. In depth demographic data analysis should show you trends in consumer purchases and how businesses have fared in the area you plan to grow your business. If businesses in the area are stable then it’s likely that your business will be stable.
It’s all in the Economics-Targeting Audiences
Probably the most important aspect of whether or not to settle into a location is the economy. You need to know whether your target audience will be able to buy your products and services. You need to understand their economic status so you can target the right products and services to the right people. Demographic data can help you determine whether your business will fail from lack of customers or succeed because you have targeted the right audience for your product and service.
Retail site selection does depend on a number of factors. Knowing your target audience through demographic data will help your business grow with the whole community.