Are you ready to conquer a new market? Before taking the leap, it's crucial to assess the market's unique characteristics to ensure a successful entry. Two vital factors that businesses must consider are the local traffic patterns and your target audience at the exact location of interest.
Failing to identify your target audience accurately is one of the most significant risks of entering a new market. Without knowing your customers, you'll miss the mark when tailoring your marketing efforts or creating products and services that meet their needs. This could be detrimental to your business, causing you to waste resources, lose revenue, and miss out on valuable growth opportunities. So, do your homework and get ready to rock that new market!
Therefore, the accuracy and reliability of target audience estimation plays a crucial role in the process of optimal site selection. Companies need to have access to reliable location data that allows them to precisely identify the share of their target audience within a specific area. However, obtaining such data can be challenging, particularly if the business is relying on commonly available demographic data, which may not reveal crucial differences between competitive sites.
Thus, at Ticon, we conducted a study to establish the proper nomenclature and quality of the source data for identifying the target audience.
In an earlier blog, we discussed how Ticon conducts analysis to determine the share of the target audience within a specific area. Ticon Target Audience Index (TAI) measures how likely people with specific demographic features, such as age, gender, and income, are to be interested in a particular service. This valuable insight is derived from Ticon's comprehensive analysis of diverse data sources, including the US Census Bureau, specialized market research reports, selected datasets, and focused industry studies.
A recent case study we conducted while developing our Target Audience Index clearly demonstrated that in order to get adequate information for precise location analysis, the availability of hi-res dataset is critically important. In contrast, commonly available demographics and other data may not reveal crucial differences between competitive sites. In other words, the use of low-resolution data results in mistakes in decision-making.
To illustrate this point, consider the image below (Figure 1), which depicts the contrast between regular and high-resolution demographic data collected for the same area. If we look at the data for some age groups, we see almost the same values. However, for other age groups, there is a twofold difference.
Figure 1. Contrast between regular and high-resolution data
Relying on incomplete or inaccurate data to determine the demographics of their target audience within a particular area may result in target audience estimation errors (Figure 2). This often leads to businesses misidentifying their potential customers and making costly mistakes about their market entry strategy.
Figure 2. Target audience estimation error that is avoided by the use of Hi-Res data
The same effect will be noticed for other parameters, like income and income distribution.
In today's competitive business landscape, companies demand advanced customer insights to make informed decisions about where to open new locations and how to optimize existing ones. Retailers rely on transaction counts as a fundamental measure of store performance. However, accurately assessing whether transaction volume is too high, too low, or optimal requires insight into actual visitor numbers.
This is where Ticon Target Audience product can provide value, as it adds an enhanced level of granularity that retailers previously struggled to see, to keep companies away from making costly mistakes. Now, by leveraging both technologies, Ticon Traffic Data and Target Audience Index, companies can identify high-traffic areas with a high concentration of their target audience, better understand customer behavior and optimize their store performance in a data-driven manner, allowing them to strategically locate their business and maximize their potential customer base.
Thus, integration of this product into retail operations presents an opportunity for increased efficiency and profitability, as it provides previously unattainable insights into customer behavior and store performance. In addition to convenience stores, this technology may be applied to many other industries, such as retail, drugstores, financial services, and more.
Contact us at info@ticon.co to learn more and receive easy-to-use data-driven market insights.
