If you want to succeed in business, you need to know who your customers are and where to find them. That’s why site selection and area analysis are not complete without a clear picture of your target audience. By learning about the people who live and work in different areas, you can choose the best location for your business and tailor your marketing, pricing, and operations to their needs and preferences.
Ticon makes it easy for you to do market research and analysis with data that is designed for effective decision-making. Whether you want to reach students, blue collar workers, shoppers, or any other group, Ticon has you covered. Our new tool helps you understand how your target audience is represented in a particular location of your interest (LOI).
Ticon Target Audience Index (TAI) measures how likely people with certain demographic characteristics, such as age, gender, and income, are to be interested in your service, based on how often they visit similar businesses. This intelligence comes from Ticon analysis of a wide range of data sources, including the US Census Bureau, specialized market research reports, selected datasets, and focused industry studies.
To calculate target audience, we first do a demographic segmentation analysis to find out which groups of people are most attractive for your business to target. Age-sex pyramid visualizes this kind of distribution (Figure 1)
Figure 1. Age-sex pyramid of target audience
Then we look at the income features of local communities that reveal the purchasing power and consumption patterns of the population in the area. For the c-store industry, it is important to consider that personal income matters more than household income distribution (Figure 2).
Figure 2. Personal income chart of target audience
It is worth mentioning that data granularity is extremely important for reliable computing of the target audience. Special case study we conducted in the course of developing this product had clearly shown that the Ticon Hi-Res dataset guarantees adequate information for exact location, while generally available demographics and other data do not allow the discovery of important differences between competitive sites.
Target audience characteristics can vary significantly across industries, influenced by a range of factors such as location, products and services offered, store type, and more. Ticon provides Target Audience analysis for different industries, considering their unique demographic segmentation features and other factors that affect their business.
In our recent case study, we wanted to measure the target audience index for a c-store company in various locations that had some common characteristics, such as low population numbers and more vehicle traffic than foot traffic. Our study included 12 sites, with population numbers from 9,960 to 69,217 people (average of 29,173 people). Out of these sites, eight were business areas, and four were residential and suburban areas, located in different states across the United States, namely Pennsylvania, Florida, Georgia, North Carolina, Virginia, Alabama, Tennessee, and Kentucky. Our comparison demonstrates that, even though the locations were similar, volatility of the target audience index is significant, indicating better or worse opportunities for company growth (Figure 3).
Figure 3. C-store target audience index for various suburban locations
Across various locations, the target audience index for the c-store ranged from 0.47 to 0.67. This indicates that certain areas have almost twice a higher concentration of potential customers compared to others.
Based on the target audience analysis it becomes possible to make smarter decisions about site selection, product offerings, and marketing strategies. By adjusting your business approach to known demographic segmentation and target audience details of a given area, you can better serve the needs of potential customers. Generally, target audience estimation helps you focus on certain areas for site selection, expansion or product placement. Also, you can tailor your marketing messaging and product offerings to the specific preferences and buying behaviors of the target audience in each area.
This tool may be applied not only to the c-stores, but also to many other industries, such as retail, drugstores, and more.
Contact us at info@ticon.co to learn more and receive easy-to-use data-driven market insights.
