Create Sales Forecasts with the Location Analysis Tool WIGeoLocation

How can location decisions be supported by sound data?

Branch and location networks are only as good as the current environment and market situation allow. As soon as new developments, such as shifts in demand due to competitors, changes in market volume or online commerce, the location network must be reviewed and possibly adjusted.

“In a market environment that is subject to high levels of change, it is crucial to base location decisions and the planning of location networks on solid and up-to-date data. This ensures that investments in new or existing locations remain profitable.”
Andreas Marth, Head of Solutions, WIGeoGIS Vienna

In order to keep location and branch networks fit, they should therefore be subjected to a regular checkup. This is exactly what the location analysis tool WIGeoLocation is designed for. 

It helps to answer questions like these:

• Which locations should you keep?
• Is it time to upgrade individual locations?
• Has anything significant changed in the area surrounding the location (e.g. in terms of population numbers, purchasing power or competition)?
• Can the location network be expanded, and if so, where?

The darker the area on the map, the higher the potential utilization of your own location (★). If a competitor opens a location, the sales potential changes.

How do gravity analyses and the cannibalization effect improve location analyses?

Gravity analyses and the cannibalization effect can basically be used for two purposes:

1. Past or present-related: To explain past and current changes in sales and customer frequency
   
2. Future-related: To predict how a future change in the location network will affect sales or customer behavior

Example of Use:

The sales of a pharmacy decline unexpectedly. Calculating the gravitation and the cannibalization effect in WIGeoLocation can provide an explanation: For example, it might reveal that a new pharmacy in the catchment area is taking sales away from your own business. It can also tell you how much revenue you are losing. The strategic consequence could be, for example, the relocation of the pharmacy, an expansion to make the location more attractive, or a marketing campaign. If relocation is an option, the effects of this step on sales and customer behavior can be predicted in WIGeoLocation using gravity analysis. Scenarios can also be created for different potential locations, so that it becomes clear which location has the most sales potential.

What are the benefits of sales forecasts in WIGeoLocation?

With decades of experience and specific industry know-how, WIGeoGIS is a leader in providing precise sales forecasts and the most accurate predictions of customer frequency with the help of gravity analyses in WIGeoLocation. Together, we configure the software based on your individual business model.

Which factors determine the attractiveness and thus the revenue of a location?

• Customer frequency: How many customers are present in the catchment area of your location?
• Target group: Does your location also attract customers with the right (product-specific) purchasing power?
• Surroundings: How far away are your competitors? How attractive is the area surrounding your location (e.g. restaurants, leisure activities, other shops)?
• Infrastructure: How easy is it to reach your location by public transport, by car, on foot, etc.?
• Product range: Size of the sales area and quality of the assortment

The WIGeoGIS team supports you in selecting parameters for your specific needs, configuring the software and integrating external and internal data.

“We work closely with the client to define which parameters to integrate into the software, as these vary based on the individual needs of the client. For example, the success of a supermarket depends on different factors than that of a furniture retailer or a golf course.”
Andreas Marth, Head of Solutions, WIGeoGIS Vienna

To ensure that your sales forecast is as accurate as possible, real sales data from your existing locations are also included in the model as benchmarks. We guide you on the path to a perfect location analysis and the best location decisions.