People tend to consider many factors when selecting a place where they can shop. But, the distance between the store and their home is often considered an important factor when it comes to making a purchase. Gravity Models is one such concept that suggests that people’s buying behavior depends largely on the proximity of the store, how attractive the store is, where it is located, how many people visit the store, and not to mention, how attractive the competitor’s store is.
Based on these factors, a retail store owner can take many steps to expand their business and grow exponentially in the target market. In fact, most startups and companies that are setting up their businesses in a new region consider gravity models, understand the market condition, and then decide if they should select a particular location for starting their business.
Use Gravity Models for Growing Your Customer Base
What is the first thing you consider when starting a store? Well, no matter the size of the company, the first thing that goes into deciding how and where you should open a store is how many people will visit and patronize the store. You don’t just want people to know your brand and visit your store occasionally. But, if you are investing hundreds of thousands of dollars in a project, you will want exceptional returns.
In this case, you want your audience to become your regular customers who not only visit your store frequently but support it in many ways. That’s where the gravity models can help. Gravity models is based on the idea that the attractiveness of a local retail store depends on its size and distance. So, you need to figure out these two essential factors before you go ahead with the gravity models.
Use GIS Software for Gravity Models
You can use the GIS software to measure distance and show this information on the map. It is important to take some time to run the gravity model for the retail store that you plan on starting so that you can have a clear picture of how your store is likely to perform and what kind of audience will it attract. It is equally important to analyze the distance of the store from public places and where a vast majority of your audience comes from. The closer the store is to your target audience, the more attention it gets. Most people have linked the attractiveness of a store to its size and proximity.
With these variables, it is easier for businesses to predict consumer behavior and the chances of the customers visiting your store. For instance, the distance between your store and your customers’ location tells you how convenient it is for them to pay a visit to your brick-and-mortar store. It also depends on your competitor’s location. If they are closer to your target customers and have a large store, they will most likely attract the attention of your audience.