The simple truth: Relying solely on mobile data for revenue forecasting could be a costly mistake

When it comes to forecasting new sites’ revenue potential, mobile data stands out as a crucial tool for real estate professionals. However, some site selection solutions rely solely on visit counts for projecting sales, an approach that can lead to misguided conclusions and have detrimental effects on a brand’s success. Making decisions on where to expand with a heavy emphasis on mobile data can overlook other crucial factors and result in over-projecting revenue. For the most accurate revenue forecasting, you need a comprehensive approach that combines all essential metrics for evaluating potential sites.

Why mobile data shouldn’t be the sole predictor of revenue

Simply relying on mobile data to determine revenue potential can be deceptive. The relationship between visitor count and sales is often not as straightforward as it seems. After comparing two different locations of the same brand with similar visit counts, we found a difference of over 500% in sales. Similarly, two locations with similar sales figures experienced a 400% difference in visit counts. This clearly demonstrates that there are various factors beyond mobile data that influence revenue generation and how using it as the primary indicator can be the cause for costly site selection mistakes.

Another reason why you should not rely exclusively on visit counts when assessing a site’s potential is that this metric may not always be accessible or aligned with your brand. For example, when considering undeveloped land for a new site construction, historical mobile data may not be accessible for accurate revenue forecasting. Similarly, if a previous tenant of an existing structure had a business unrelated to your brand, assuming similar visit counts would be misguided.

In combination with mobile data, brands should consider a number of other variables to accurately predict revenue potential. Factors such as site characteristics, demographics, traffic counts, nearby co-tenants, and competitors play a pivotal role in providing a comprehensive understanding of a site’s viability and revenue-generating capabilities.

Effective market planning uses of mobile data

While mobile data isn’t the sole indicator of revenue forecasting, it serves as a valuable tool for other analyses. Having access to visit counts has proven to be successful in identifying top customers, determining accurate trade areas of sites, and evaluating the potential impact of opening new stores in proximity to existing ones.

Customer segmentation

By using mobile data for customer segmentation, your business can identify the types of individuals who visit your locations the most. Categorize and target specific customer groups based on their location, behavior, preferences, and demographics to create tailored marketing strategies and offerings.

Identifying trade areas

Tracking visit counts also excels in identifying your sites’ true trade areas. By visualizing the distance traveled by your customers, you can accurately define the geographic boundaries within which a site draws the majority of its customers. This analysis helps brands understand the reach of their locations, identify areas of high customer concentration, and optimize marketing efforts to maximize foot traffic and sales within their trade areas.

Impact analytics

Impact analysis is another critical piece to every market planning strategy where mobile data proves invaluable. By understanding the paths customers take to your locations, A.I. and machine learning can accurately predict how much traffic a potential new store would cannibalize from your nearby existing locations. The results of this study can help your real estate team make informed decisions regarding store placements, expansions, and clustering strategies, ensuring that each new site enhances the brand’s overall profitability and market reach.

Your comprehensive solution for enhanced revenue forecasting

At SiteZeus, we offer a cutting-edge location intelligence software that empowers businesses to leverage mobile data alongside other essential tools for precise revenue forecasting. Our platform equips brands with the ability to analyze site attributes, understand customer demographics, assess competition, and predict revenue with accuracy. By incorporating visit counts into our comprehensive solution, SiteZeus ensures that businesses can make strategic decisions backed by robust insights, leading to optimized site selection and revenue growth.