A business’s success depends on many factors, but its location plays a significant role. Choosing where to locate your business requires specific considerations, such as attracting and retaining customers and employees, increasing productivity, and more.
Setting up your business in the right place and creating brand awareness will make your business successful and enhance your customers’ experience. Check out this value-added quick video summarizing the benefits of using location data in your business analytics. Don’t miss it!
Take Walmart, a successful multinational retail company whose global location strategy includes stores located in or near urban areas and consumer population clusters. Walmart is incentivized to keep its stores close to each other as it can economize on shopping.
Therefore, Walmart successfully avails materials and goods to its employees and targets customers through strategic warehouse locations.
Also, Walmart believed having quite a few stores would facilitate delivery logistics. Hence, Walmart waited to reach the prime locations until it could build its store network to reach the customers. This made Walmart the favorite of many consumers.
So the real question is – Does location strategy help a business grow and mark its success by capturing people’s minds? Let’s find out.
What is a location strategy, and why is it important?
A business location strategy is a well-defined plan for identifying and choosing the exact location for starting a business to fulfill its objectives and requirements. It helps in market segmentation, customer analysis, localizing, and branding.
Therefore, selecting the right business location helps determine the product offering, market demand, service setup, etc.
Maximizing potential market share, reducing costs and risks, identifying corporate requirements, and consulting with stakeholders to become comfortable with location analysis are key objectives.
Let’s dive into several ways to improve your business’s location strategy.
Tips to improve a business’s global location strategy
Your business’s location is crucial for enhancing its productivity and success. A few variables can help you choose your business location.
1. Discover the best location: There always arises a need for products that may not be readily available to the customers. Therefore, it is wise to open your outlet where there is a necessity and significant demand for your product or services.
Locating your brand close to or far from your competitor may not help your business. Similarly, locating your business in the middle of nowhere is not advisable, as it can hurt your marketing demand.
Therefore, if your brand’s presence is not too close but within your competitor’s store’s radius, it would improve your marketing strategy, product demand, and customer traffic.
2. Get real-time data: When you lack a specific location’s necessary datasets, such as population, type of people, natural resources, and more, the process becomes complicated and uneasy.
Determining the exact business location becomes smooth and easy only when you have valid data points for the specific area. Accurate location datasets help understand customers’ requirements and adopt necessary steps to fulfill those needs, improving customer satisfaction.
The global location strategy helps monitor competitors and analyze market demand to decide on and fix the brand location, improving performance in the long run.
3. Plan ahead: All entrepreneurs aim for not just immediate success but life-long success. Many years of investments and capital are required for any business to be sustainable.
Planning your business for the next 10-20 years would help you reduce operating costs and avoid unexpected resource shortages and price shocks.
A clear idea of a specific business location can protect you from risks such as natural hazards, security threats, and acquiring government properties.
With business location analysis, you can invest wisely in expansion strategies, attain more customers, and sustain your business indefinitely.
4. Improve your customer experience: A happy and satisfied customer is always an asset to any brand. This develops an emotional connection between the brand and the customer, enhancing the business’s functioning.
Identifying, tracking, and targeting the right customers with the right location strategy enhances your customer experience throughout the journey. This way, you get real-time insights on the customers to extend your brand’s preferential status.
Also, providing seasonal discount coupons and rewards for the number of purchases and visits would improve customer engagement and foot traffic. This customization would fuel your business’s success.
Work on your business’s location strategy with POI Data.
LocationsXYZ, our location data solution, can empower your global location strategy with valid point-of-interest datasets. We cover a wide range of data points, such as amenities, company names, people, and more, to provide detailed information and target a particular location’s right audience.
We help you get real-time data by enabling periodic refresh in frequencies of 30-60-90 days to keep your location database accurate and fresh all the time.
Our solution also allows you to stay informed about competitor stores within your geographical boundary, strategize your store establishment decisions, and attract customers to your store with promotional messages.
It helps you build sustainable expansion strategies across lucrative locations considering competitor store location data, demographic data, or other relevant points of interest datasets.
If you are interested, request a demo here and get to know us more.
