Spatial Insights, Inc. President Donald B. Segal has submitted an article to The Journal of Database Marketing describing a radical new technique to the use of customer-level point-of-sale data.

“Retail Trade Area Analysis: Concepts and New Approaches” first reviews the traditional approaches, such as radial studies, and discusses their shortfalls. Mr. Segal writes, “[Radial studies] assumes that the trade area is circular, and is centered on the store location. The technique does not account for logistical barriers that may cross through the circular area, serving to restrict access.” The article goes on to describes disadvantages of using gravity models and drive time analyses.

TrendMap alleviates the drawbacks of the traditional retail analysis approaches by modeling trade areas directly from data collected at transaction time, either by credit card transactions, ‘courtesy card’ programs, in-stores surveys or other by means. The article reads, “TrendMap uses a unique radial filter-based algorithm that evaluates either the density of points, the sum or average attribute value calculated from all points” that fall within a user-specified radius.

“Retail trade area analysis” was published in the sixth volume, third edition of The Journal of Database Marketing.