Companies are increasingly turning to location analytics to boost their business profits – it is one of the biggest business strategy trends of recent years.
Location analytics involves assessing data and discovering patterns and correlations that allow for business scenarios to be built.
Research by the International Data Corporation shows that companies using data in this way are six per cent more profitable and five per cent more productive than those that do not. These are only a couple of reasons why businesses of all sizes should focus on this new strategy development tactic.
Investing in a franchise gives aspiring professionals the chance to build their own empire on a recognised and already established brand. One of the biggest challenges is to break even and generate positive ROI. The initial investment usually comprises of the franchise fee, supplier fees, furniture and various equipment. Success obviously depends on how much the company understands local custom and the environment in which it operates.
Thus location analytics can be used to create a profitable franchise business. Consider franchising a gym for example; location analytics helps determine the factors that make a franchise a success by analysing customers, the catchment area it covers, the population density of the area, how customers travel to the location etc.
Understanding the potential local customers can help franchises deliver tailored products or services. Also understanding how potential customers live and travel can help franchise owners to make better decision when choosing an area in which to expand.
Comparing and contrasting results with other franchises help establish particular success factors, and a ‘proto-type’ area profile can be built. What remains then is to find an actual location that answers as realistically as possible to this profile.