Location intelligence 

The problem

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It is difficult to assess property performance and management at different locations because different locations can be expected to perform differently because of different demographic structure their catchment areas

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My client required a tool to effectively neutralise the impact of location so that 'true' performance could be assessed

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In addition, there was a requirement for an easy to use guide to aid with locating new property acquisition

 

Step 1 Understand the demographic revenue drivers 

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Revenue for each venue was provided and modelled against all available demographics for their catchment

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Several additional factors were developed, including a competition score which took into account the number of competing venues in the catchment

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The revenue drivers were combined into a compound demographic score that strongly predicted revenue

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The compound revenue driver score was unique to the problem it was designed to solve. It contained several factors that were unexpected by management. It is important to note that household income was not the strongest factor.

 

 

Step 2 Location adjusted expected revenue

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Actual revenues were compared with expected revenues, calculated for every location 

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This provided an invaluable guide to head office in deciding whether a property was performing better or worse than expected for the location

Step 3 Location acquisition guide

 

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All postcodes in Australia were listed with the expected revenue from each

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This provided an invaluable guide for acquisition and divestment of property

 

 

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