Big Data can provide unrivalled insight into commercial property performance. This enables national and international brands to plan ahead and maximise potential profitability.
How to gain commercial property performance insight with Big Data
Here’s an introduction to how you can use Big Data to analyse commercial property performance:
Customer behaviour analysis
The most important metrics for analysing commercial property performance centre around customer behaviour and sales data.
At its most basic, sales data can tell you:
- How much of each product or service you’re selling
- When products are most likely to be sold
- What the average value-per-transaction is
Combine this with loyalty card and customer account data to work out the ratio of new visitors vs. returning customers. This should tell you how well your property is positioned to take advantage of passing footfall as well as how many loyal customers are based in that particular area.
You can also analyse response rates from marketing campaigns to find out how many customers react, what percentage have to be incentivised to travel further and which products/services are most desirable within a particular area.
Transport network optimisation
Your property’s proximity to public and major logistical transport networks can also define the potency of its performance.
Use data relating to the following points to decide whether the property is effectively located:
- Is it easy for customers to travel to and, if not, what is the cost of incentivising them to travel further?
- How does the location affect buyer behaviour? Are customers purchasing a few items on the way back from work, or driving out to do a ‘big shop’ at weekends?
- Are there any local transport infrastructure development plans? If so, how is this predicted to affect customers?
- If products are dispatched via post or services delivered externally, what is the cost of transportation?
In addition, gather data on the distance from your nearest stock depot, the total journey time and how stock delivery at the property fits in with your wider distribution network.
If additional logistical costs impact too greatly on overall profitability, it might be time to consider a new location.
Commercial property improvements
By combining sales data with logistical and property-related data, you can gain insight into whether service improvement or expansion within a particular is likely to be profitable.
If the data suggests you might be able to reach out to additional customers within an area, check whether the potential profits could be outweighed by the cost of redevelopment or expansion.
Also, factor in any costs associated with keeping the property as it is and whether the change might add overall value to the property in the long-term.
Big Data analysis should be fast and effective
With so much data now easily accessible, analysis and insights can take a significant amount of time and investment to orchestrate.
But, with specialist location intelligence software like Periscope®, you can speed up the process exponentially by overlaying over 200 datasets simultaneously and visualising your insights on a specially developed version of Google Maps.
Discover how Periscope® uses Big Data to give you the level of in-depth insight you need to optimise commercial property performance.