Spatial Insights, Inc. has developed a proprietary mapping technology that uses customer based point-of-sale (POS) data to accurately define trade areas by modeling the true geographic distribution of customer density or revenue.
The company uses the technology in a new service offering, called CustomTrendTM, which is designed for retailers who want to define trade areas or identify trade area overlap. By accurately defining the geographic extent and characteristics of their trade areas, the CustomTrendTM service helps retailers define the demographics of their customers, quantify trade area cannibalization, and delineate market opportunities.
CustomTrendTM is more effective than mapping customer locations using simple point displays or standard thematic maps that are based on census geography. This is because these techniques do not provide a realistic indication of the trade area, or the true geographic distribution of customer concentration or revenue.
To define demographic profiles or develop site suitability models, demographics and other geographically referenced data can be subset and summarized according to the actual trade area or strength of revenue concentration.