The Best Alternative Dataset for Investors? Location Analytics

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Since modern investing began, one thing has remained constant: data is essential to developing the best investment strategies. Traditionally, professional investors have relied on public company disclosures, such as quarterly earnings reports and other financial statements, to evaluate a company’s performance and make investment decisions.

While a company’s financial metrics like revenue, profit, income, and expenses certainly provide valuable insight when considering an investment opportunity, this data alone may not provide a comprehensive picture of a company’s current or future performance.

Today’s investors are continuously seeking more information about companies beyond quarterly earnings reports. As a result, non-traditional datasets, known as alternative data, are increasingly being used by investors to make better decisions and reduce risk.

Alternative data can be any type of information about a company that can help guide investment strategies (e.g., public sentiment, website traffic, social media metrics, employee count, etc.). So what are the best alternative datasets for investors? Consumer foot traffic data measured through location analytics is a key alternative dataset that every investor should be using.

Foot Traffic Data from Location Analytics Can Guide Investment Decisions

Location analytics provides insight into the places consumers go in the physical world. At our company, Unacast, we leverage mobile location data to measure consumer foot traffic at places of commercial interest, such as restaurants, retailers, hotels, entertainment venues, and more.

Foot traffic data reflects real-world consumer engagement because the places that people choose to go to and spend their time and money demonstrates their interests, preferences, and priorities. As an alternative dataset for professional investors, foot traffic data can highlight changes in consumer behavior, trends, and demand, which can help investors more deeply understand a company’s performance outside of its quarterly earnings results.

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Foot Traffic Data Coupled with Other Alternative Datasets Offers Deeper Insights

Investors can derive even more insight from a company’s consumer foot traffic data by analyzing it alongside other types of data. For example, analysts can examine a brand’s foot traffic beside its quarterly revenue to determine the correlation between the two. If there is a strong correlation, then investors can use the company’s foot traffic data to estimate its potential performance in the future. Investors can leverage this information to guide their investment strategies before the company releases its next earnings report.

With the many types of alternative data available today, there are countless insights that investors can gain by incorporating foot traffic data into their analysis. For instance, if a brand launches a highly anticipated product, an investor could look at figures surrounding the launch, such as the company’s hiring rate and number of credit card transactions, along with foot traffic analytics like volume and dwell time, to get a more complete idea of how well the company prepared for its product launch, how consumers reacted to it, and what this could mean for the company’s future performance.

Better Investment Strategies with Foot Traffic Data

Foot traffic data measured through location analytics gives investors timely insight into changing consumer preferences in a post-pandemic world. By analyzing foot traffic data that reflects true consumer activity, investors can better understand a company’s performance in near real-time. Analysts can also use historical foot traffic data to create forecasts that predict future foot traffic trends and illustrate how any changes in foot traffic may impact future company performance. Through these insights, investors can identify opportunities, mitigate risks, and ultimately gain an edge in the market.

To learn how to use location analytics in your investment strategy, book a meeting with us today.

Frequently Asked Questions

Discover how analyzing real-world movement patterns can reveal valuable trends in customer behavior, optimize business operations, and enhance strategic decision-making.

What is site selection and why is it important?

Site selection is the strategic process by which businesses identify, evaluate, and choose optimal locations for their operations. This process is paramount as the location of a business directly influences factors such as accessibility, visibility, profitability, and market longevity. For retailers, the right site can mean higher customer footfall and increased sales. In real estate, a well-selected site can promise lucrative returns on investment and tenant stability. Financial service firms leverage site selection to position their branches or ATMs in high-demand areas. Essentially, site selection plays a pivotal role in ensuring the success and growth of a business by aligning its physical presence with market opportunities and demands.

How does location intelligence enhance site selection?

Location intelligence refers to the harnessing of geospatial data to derive actionable insights, which can significantly enhance the site selection process. By analyzing data like consumer demographics, foot traffic patterns, competitor locations, trade area data, and more, businesses can make more informed decisions about where to establish or expand their operations. Location intelligence allows for a deeper understanding of market dynamics, revealing hidden opportunities or potential pitfalls. For instance, retailers can identify gaps in the market, real estate professionals can forecast property value trends, and financial service providers can assess areas with high customer demand. Advanced tools, like those offered by Unacast, further refine these insights by leveraging AI and machine learning, enabling more precise and timely decision-making.

What challenges do businesses face in the site selection process?

Unacast provides invaluable support to businesses during the site selection process through its advanced location data and analytics software, all powered and refined by Artificial Intelligence and Machine Learning technologies. The company offers a suite of products designed to deliver accurate, actionable, and comprehensive location intelligence. This data proves crucial for businesses looking to understand consumer behavior, analyze traffic patterns, evaluate competitor locations, and much more. With Unacast’s robust tools, businesses in retail, real estate, and financial services can derive insightful information necessary for making strategic, informed site selection decisions. The platform not only provides reliable data but also ensures it is readily actionable for businesses, whether they are looking to open a new store, invest in property, or expand their financial services to new locations.

What types of location data are crucial for informed site selection?

Demographic data offers insights into the age, income, and lifestyle of people in a particular area, helping businesses understand their potential customer base. Foot traffic data provides information on the number of people visiting a location, which is crucial for retailers to estimate the store's potential popularity and for real estate professionals to assess an area's vibrancy and demand. Geographic Information System (GIS) data helps in visualizing and analyzing geographical details, supporting companies in identifying accessible and strategically located sites. Understanding the proximity to competitors, accessibility, and the socio-economic profile of the surrounding areas is also vital. Unacast’s platform aggregates and analyzes these various data types, providing a holistic view that significantly empowers businesses in their site selection endeavors.

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