In a report recently published by Cisco, 4 “R”s were identified as being key to success in the retail market: the Right product, the Right place, the Right time and the Right price. So how can sales mapping software impact on the 4 “R”s?
The Right product
Would you sell snow boots in Australia? “Of course not!” non-Aussie’s may be prompted to declare. But while you may have a fixed vision of Australia as being a place of constant sweltering heat, think again. Australia does get snow. You can even take to the slopes in Australian ski resorts! Fully understanding the geography of your marketplace helps determine what products you stock and the level of your marketing spend.
The Right place
Not all retail ventures are going to be successful. When a new outlet is planned, you have to be sure that the location you choose will attract the greatest number of customers. How to do that and achieve the best ROI? Blend sales mapping data with relevant demographic datasets. These can be age, income, distance from proposed location, etc. Altenatively, use territory mapping to discover if there is a market for your products and how big that market is. Sales potential is optimized, risk is reduced.
The Right Time
As with every business, timing is everything. Sales mapping empowers quicker decisions. When you can visualize current inventories and distances between suppliers & retail outlets, you know which are the best two to connect with each other. You don’t guess, or figure out distances on a spreadsheet. Therefore, when there are unexpected market changes (often prompted by social media campaigns) and a particular product is suddenly in vogue in a particular region – you are fully prepared to deal with the upsurge in sales activity.
The Right Price
When it comes to pricing, the key location influence is how far a customer is willing to travel to get the best price possible for a product. That means it’s crucial that your pricing takes into account other retail outlets that sell similar items to your own. Create a sales map showing the nearest challengers (and how close they are to your customer base). Then respond appropriately by reducing prices or with a localized marketing campaign that highlights benefits that make your store the more attractive proposition (better customer service, family-friendly facilities, etc).
Want to find out more about retail and sales mapping? Try eSpatial mapping software. Use the full version, free of charge, for 7 days, and get reports and insight that could completely change your business – forever.