Did You Know There is a Scientifc Way to Find the Optimal Branch Location?
Identifying a location that will perform well for a new branch is a very complex problem. Extensive field studies and surveys are among the most common strategies, but even high costs and time expenditure aside, the conclusions of the analysis are prone to biases and errors.
Gravitational models can provide unbiased and analytical solutions to location selection in a matter of seconds. The approach presented in this whitepaper is applicable to any site around the world and can be used to predict KPIs for potential new branch locations.
Here's What You Will Learn
Step-by-Step Explanation of the Analysis Pipeline
Predict Branch KPIs like Visitor Numbers/Turnover
Leverage Customer Data and Store Attractiveness
Improve the Model with Your Own Proprietary Data
Eliminate the Guesswork of Branch Network Expansion.
Location assessments need to account for diverse factors like suitability of the area, amenities and competitor activity in order to predict how successful a given location will be and to create the most value. Retail companies can use gravitational models to answer questions like:
How to define a successful location for my branch network from an objective point of view?
How to predict location performance like sales revenue and number of visitors?
How to correctly account for competition and cannibalization?