SiteZeus is tasked with identifying the ideal trade areas and a total potential unit count for your brand nationally.
Goal and Framework
In order to identify the ideal markets for your brand, SiteZeus conducts an analysis on existing locations and similar brands based on a selected targeted demographic and geosocial customer profile.
A score ranging from 0-100 is developed that balances the demographic profile with the targeted customer behaviors exhibited through social media.
A whitespace algorithm is then used to identify how many sites can fit into a market with ideal spacing applied based on urbanicity. Priority is placed on the highest scoring opportunities.
Customizing Parameters
When running a Demographic Whitespace, parameters will need to be defined to meet your brand's needs.
Select Market Definitions
SiteZeus splits trade areas into market types based on daytime population (number of people in an area during normal business hours, including residents and commuters) to account for urbanicity differences.
Example definitions:
- Skyscraper Urban - 0.25 mile (250,000 or more people)
- Hyper Urban - 0.50 mile (80,000 - 250,000 people)
- Urban - 1 mile (25,000 - 80,000 people)
- Heavy Suburban / Light Urban - 2 mile (15,000 - 25,000 people)
- Suburban - 3 mile (4,000 - 15,000 people)
- Exurban - 5 mile (1,000 - 4,000 people)
- Rural - 10 mile (1,000 or less people)
Select Seed Points
Data will be pulled on thousands of existing Seed sites to use for scoring. To identify how your brand could score when building nearby these Seed sites in the future. SiteZeus can pull data on businesses in a variety of verticals. Your team should select a variety of businesses/verticals (with a total typically over 50k points) to maximize coverage. The below verticals are examples of past used Seed verticals:
|
Auto |
Grocery |
|
Beauty |
Gym |
|
Casual Dining |
Home Improvement |
|
Coffee QSR |
Hotel |
|
Dessert Shop |
Miscellaneous |
|
Dollar Store |
Pharmacy |
|
Education |
QSR |
|
Entertainment |
Retail |
|
Fast Casual |
Shopping |
|
Gas |
Wholesale Club |
Select Proxy Brands and Benchmarking
To identify a median benchmark value for the various market types under study, we benchmark against all the sites in your brand’s current portfolio that may be regionally focused/of a small sample size, and add other similar competing concepts which allows for more markets to be studied based on the selected demographic criteria.
This ensures, that once applied nationally the demographic criteria benchmarks are not skewed towards any one ideal market/urbanicity.
Example benchmarks:
|
Demographic Variable |
Hyper Urban |
Urban |
Suburban |
|
Age 21-44 |
115,697 |
126,490 |
54,379 |
|
Income 75k+ |
59,843 |
62,019 |
32,840 |
|
White Collar |
108,149 |
112,822 |
57,690 |
|
Bachelor’s Degree |
66,801 |
51,986 |
29,394 |
|
Daytime Population |
408,015 |
392,010 |
183,269 |
Select Demographic Criteria
The demographic portion of the whitespace score is calculated based on the specific demographic variables that your team selects. These are often based on a correlation analysis compared to existing revenue in combination with your management team’s recommendations. Once selected these demographic data points are then benchmarked against the Proxy median values for each market type. Each variable selected must also be assigned a weight. With the final weighted distribution summing to 100%.
Most often these variables are from one of the following categories:
- Age Range
- Income Bracket
- Home Value
- Population Type
- Points of Interest
- Occupation
- Education
Example selection:
- 20% - Age 25-44
- 20% - Income 75K+
- 20% - White Collar
- 20% - Bachelor's Degree
- 20% - Daytime Population
Select Geosocial Segments
SiteZeus will develop a score using the geosocial segments that are correlated with existing unit performance, identified as top segments based on the customer segmentation analysis, or the segments recommended by your management team.
SiteZeus conducts a customer segmentation analysis to identify which geosocial groups most frequently visited the existing sites by combining the mobile data pattern of customers coming to existing sites with the behavioral segment presence of conversations occurring on social media.
For more information on these segments click here: https://taxonomy.spatial.ai/
Example Geosocial Segment selection:
- Trendy Eats
- Deal Seekers
- Coffee Connoisseur
- Yoga Advocates
- Girl Squad
- LGBTQ Culture
Demographic Whitespace Results
The results are separated into tiers based on their total score.
- Tier 1 - 80 and Above
- Tier 2 - 70 to 80
- Tier 3 - 50 to 70
- Tier 4 - Below 50
They will be imported into your team's project as Layer Sites.
The pins will be named in the following format:
Urbanicity | Geosocial Score | Demographic Score | Seed point brand
Example: SU | G: 34.2 | D: 47.12 | Starbucks Coffee
Analysis on Future Potential
To analyze future potential sites in SiteZeus, it is recommended to favorite the same variables used in your Demographic Whitespace.
To favorite variables for Quick Demographics in the Analyze panel select the heart icon.
To favorite variables for reporting, select the lighting bolt icon from the Heatmap or Synergy Grid.
When doing analysis select the same trade area as the defined urbanicities used in the Whitespace and compare the values to the benchmarks provided.
If your team has purchased a Scorecard[insert link to Scorecard article], it will allow for any future potential sites to be scored using the same criteria as the scored Seed points from a Whitespace.