Let Big Data Choose Your Perfect Location

I have a theory about people who succeed: they cheat. And I’m in favor of it.I saw you recoil from that word a little, so I’ll say it more delicately: they’re quick to embrace an unfair advantage.Exceptional marketing gives a business an unfair advantage. Businesspeople who embrace this advantage are usually the ones who succeed.Here’s why I call it “an unfair advantage”: marketing doesn’t improve the product or the service you provide but it can make a customer choose you anyway, even when your competitor is offering a better value.Your competitor’s problem is that he doesn’t know how to win attention and create a memorable impression. He’s expecting his product to speak for itself.Products rarely do that.A strong location gives your business a second unfair advantage.Choosing a location is one of the most important marketing decisions you’ll ever make. A strong location wins attention and creates a memorable impression. A weak location doesn’t do that.Jeffrey and Bryan Eisenberg spent the past 12 months leading a team of programmers in the development of an online tool that helps you choose the ideal spot for your business. All you have to do is type in an address and the system will instantly evaluate more than 15,000 different metrics for that location, including demographics, psychographics, social signals, traffic patterns, search traffic, area competition and beneficial anchors.The blind tests they ran produced mind-boggling results.The first test involved a restaurant chain who provided the address and sales volume of their strongest location along with the address and sales volume of their weakest location. The IdealSpot software then accurately predicted precisely how all the other locations in the restaurant chain would rank. When Bryan pointed at the results page and said, “the location at this address should do 85% of the volume of the leading store,” the COO looked at his records and said, “that store does exactly 85% of the volume of our leading store. How could you possibly know that?”The brothers did the same thing for several other chains of stores and in every instance, the IdealSpot software accurately predicted what the owners of those stores already knew and were able to confirm.Remember those 15,000 metrics the software is pulling down from Big Data? One of them is “pet ownership,” so it really shouldn’t surprise you that the IdealSpot system was able to accurately predict the performance of every location in a chain of pet supply stores.Technology provides an unfair advantage. Whether or not you choose to embrace that advantage when choosing a location is up to you.When I wrote The Wizard of Ads trilogy more than a decade ago, I included a chapter called, “How to Calculate an Ad Budget.” My formula is unique in that it considers your cost of occupancy (rent) as part of the cost of marketing. Entrepreneur magazine published our formula in February 2004 and it created quite a stir. In my 35 years of experience I’ve never had reason to back away from my statement, “Expensive rent is the cheapest advertising your money can buy.”Make sure you get the most for your money.The IdealSpot website went live just last week. The company is still in its infancy. You’re one of the very first people on earth to know about this new technology.My suggestion is that you take a look at IdealSpot.com and then bookmark the website in your browser. The odds are high that you’re going to bump into someone who really needs to know about this.Choosing a location is a big decision.My advice? Embrace the unfair advantage.Roy H. Williams