A beauty salon brand wanted to assess its existing stores by pulling out site reports from GeoIQ’s location AI platform RetailIQ. They wanted to check if the site scores in these reports align with how the existing stores are performing—next, benchmark ideal scores to select the next set of locations for their new stores.
The Challenge:
- To benchmark site score and location factors ideal for their new store locations.
- Identify locations where shoppers are coming from to streamline their marketing efforts.
The Outcome:
Gained a comprehensive understanding of the performance metrics of existing salons, enabling the identification of potential high-performing locations. This analysis facilitated informed decision-making for new salon openings. All this while ensuring that selected sites aligned with successful benchmarks and key metrics of the existing stores critical to the success of a new store.
About the client:
A premium salon chain known for its high-quality grooming services, offering a wide range of hair, skin, and beauty treatments. The brand is recognized for its professional approach, personalized care, and commitment to customer satisfaction. The brand wanted a data-backed approach to further its expansion and marketing efforts.
Methodology:
Step 1:
Generate site reports for existing salon locations to assess and analyze the key parameters critical to their business.
Step 2:
Once the reports are generated and key parameters are identified, benchmark them against existing stores to compare performance and identify high performers among new locations.
Step 3:
Generate site reports for potential locations to open new salons and shortlist those that meet the established benchmarks.
Sample insights from a site report:
An overall site overview and score highlight footfall, spend quotient, the growth trend, the presence of competing and complementing brands, and the size of the total addressable market. Each of these is elaborated further in the report.
Further, the report provides an overview of the catchment potential at varying walk-time, drive-time, or catchment radius. It highlights the total addressable market based on household income, the trade area, and the presence of competing and complementing brands along with crowd pullers to provide a market overview.
The site report also provides the hourly, daily, and weekly footfall trends to help plan staffing and resource requirements. Also, to identify areas with higher footfalls in general with the help of a street-level footfall heatmap.
The brand can identify what percentage of its customers are coming from which location. This will help streamline its marketing and promotions only in those areas and significantly improve ROI. For a salon in Bandra, the customers are coming from the following locations/ pin codes
Conclusion:
By leveraging GeoIQ’s RetailIQ platform, the salon brand successfully validated site scores for their existing locations and established benchmarks for future store expansions. The data-driven approach not only helped in identifying ideal new locations but also allowed the brand to streamline its marketing efforts by targeting areas with high customer density. This strategic insight ensures better resource allocation and higher ROI for their future salons.