Wondering if eSite’s spatial analytics can help you meet your business goals? Consider the challenges our clients faced before incorporating location intelligence into their company’s data analysis.
Some opted for seemingly ideal store locations only to realize the surrounding markets wouldn’t support them. Others wasted valuable hours evaluating sites that would never work for their brand. And many were devoting money to advertising and marketing campaigns that returned few tangible results.
As you can see from their success stories, all that changed with spatial analytics.
Without a spatial component, analysis of your company’s data will always be limited. But incorporate location intelligence into your most important business decisions, and you’ll discover a new world of customer insights. Since 1998, eSite has been empowering companies like yours to make more money, minimize risk and improve operations.
Retail and Restaurants
CLIENT: Leading national electronics retailer
BACKGROUND: The company was relying on an outdated system for GIS mapping
CHALLENGE: Hours (and hours and hours) of staff time dedicated to manual map creation
SOLUTION: A custom mapping solution to automate the process and free up employees for other, more pressing tasks
RESULT: 90% increase in productivity
CUSTOM MAPPING TOOL LEADS TO IMMEDIATE 90% INCREASE IN PRODUCTIVITY
Before eSite came along, one of America’s largest electronics retailers was devoting hundreds of employee hours to map creation every month. The lack of an automated system meant every single map had to be individually created. Even the company’s fastest users could generate no more than 4 or 5 maps in an hour. That all changed when eSite built a system with custom map styling, trade area definition logic and reporting. Now, the company can easily generate as many as 75 maps per hour and run batches of 500 or more overnight. They just click “Go” in the custom eSite Tool™, let it run in the background and move on to other tasks—an advantage that’s reduced the amount of time devoted to map creation by 90%.
Increase Catalog Sales
CLIENT: International retailer of outdoor sports gear
BACKGROUND: A large percentage of target customers make buying decisions based on traditional catalogs
CHALLENGE: No way to accurately target individual customers
SOLUTION: Analyze detailed household-level data to improve the company’s mailing list
RESULT: 10% increase in sales with the first mailing
IMPROVED MAILING LIST GENERATES $16.5 MILLION IN SALES POTENTIAL
One eSite client, an international retailer with more than 60% of profits coming from catalog sales, now stands to make an additional $16.5 million annually after improving its mailing list. The company used eSite’s household-level data to better identify customers most likely to purchase its products and improve its mailing list. After adjusting the list based on this new information, the client experienced a 10% surge in catalog sales with the first mailing.
Attract New Customers
CLIENT: Large national grocery chain
BACKGROUND: The company was looking to remodel its existing stores to attract higher-income shoppers
CHALLENGE: Because each remodel costs the company $5 million or more, transformational stores need to be profitable from the start
SOLUTION: Analyze market conditions to ensure the best locations
RESULT: Within months, overall sales increase 7%
SITE SELECTION ENSURES REMODELED STORES ATTRACT HIGH-INCOME CLIENTELE
A national grocery chain wanted to transform its stores to appeal to a higher-income clientele and needed to know where to locate the refurbished, upscale stores. By modeling the client’s biggest competitor, eSite’s analysts were able to determine that the best sites for attracting affluent customers were right at the company’s current store locations. All that was needed was some rebranding and restructuring—a project the client took on while getting eSite’s feedback on virtually every decision. Within months of opening, the initial test stores were outperforming the rest of the chain and had boosted overall sales by an average of 7%.
Select Profitable Sites
CLIENT: Manufacturer of upscale kitchen accessories
BACKGROUND: After relying on direct sales for decades, it was time to begin building a store network
CHALLENGE: Concern that retail locations could negatively influence the company’s successful direct-to-consumer sales
SOLUTION: Select a test site based on analysis of the market and internal business variables
RESULT: An immediate 10% increase in overall sales in the test store market
TEST STORE IMMEDIATELY BOOSTS OVERALL SALES
For decades, a manufacturer of professional kitchen accessories had relied successfully on direct sales. Wondering how their products would perform at the brick-and-mortar level, executives decided to open test shops. With direct marketing outpacing sales at two initial stores, the company decided it was time for some professional site selection help and turned to eSite’s spatial analysis as a guide for selecting a third trial location. Shortly after opening this additional store, the company experienced a 10% lift in overall sales in that market. Additionally, the store that eSite helped locate is outperforming the other stores by an average of 55%.
Replace Hunches with Certainty
CLIENT: Multi-retail chain of 500+ stores
BACKGROUND: The company relies on eSite for ongoing analysis of new and existing store locations
CHALLENGE: eSite analysts identified a location that “common sense” was telling executives to steer clear of
SOLUTION: The client decided to go with eSite’s scientific recommendation despite hunches
RESULT: A small-town site that continually operates in the top 20% of all stores
CHOOSING SPATIAL ANALYSIS OVER INSTINCT LEADS TO TOP-PERFORMING STORE
One retailer learned first-hand the difference a scientific approach to site selection can make. When eSite’s location analysis suggested a location for a new store in a small northeastern town, the company was reluctant. Executives were skeptical of the site, believing the surrounding market was inconsistent with the brand’s customer base. Once they decided to put their hunches on the backburner and go with eSite’s recommendations, the store saw hundreds of customers in the first week, followed by thousands in the first quarter. Now that one store consistently operates in the top 20 percent of all sites nationwide.
Tap into Full Revenue Potential
CLIENT: International network of independent doctors
BACKGROUND: The growing company was looking to expand its network
CHALLENGE: No reliable method for mapping territories
SOLUTION: Compare existing store locations to true market potential
RESULT: Expansion strategy with millions of dollars in new revenue potential
LOCATION INTELLIGENCE IDENTIFIES MILLIONS IN NEW SALES POTENTIAL
With eSite’s spatial analytics, companies can identify locations that will do most of the selling for them. In fact, it’s not uncommon for our clients to increase market share through promising store locations they never would’ve uncovered on their own. As an example, one client used our data to identify an additional 33 territories with annual sales revenue potential of $396,000. And that’s in just one market—Dallas. The network of medical offices operates in cities across the country, as well as internationally, meaning millions more in true market potential is waiting to be tapped.
Reduce Appointment Cancellations
CLIENT: Network of physicians spread across 20+ states
BACKGROUND: The company relies heavily on a call center for booking first-time appointments
CHALLENGE: Lost revenue due to high number of no-shows
SOLUTION: Develop a system to forecast customer follow-through
RESULT: $1 million saved every month
APPOINTMENT CANCELLATIONS DROP 75% WITH CUSTOM SOLUTION
By relying on a call center to book first-time appointments, one medical company was missing out on a lot of potential revenue due to a high number of no-shows. When the network turned to eSite, our analysts built a system to forecast, with up to 90 percent certainty, the likelihood of customer follow-through. As soon as this customized spatial analysis software was put to use, appointment cancellations went down 75%. Because of this one change—the company didn’t take on any new marketing campaigns or restructuring strategies—this eSite client saves $1 million every month.
CLIENT: International network of independent doctors
BACKGROUND: Each expansion involved evaluating hundreds of potential sites
CHALLENGE: Hundreds of hours and thousands of travel dollars dedicated to site selection strategies based primarily on instinct
SOLUTION: Use spatial analysis to narrow down each list of potential offices
RESULT: Significant decrease in operational expenses
SITE SELECTION STRATEGY SAVES THOUSANDS OF HOURS AND TRAVEL COSTS
For one eSite client, the use of spatial analytics has resulted in a significant decrease in operational expenses. Our data has enabled the company to identify a short list of markets with the greatest potential for the company’s network of medical offices. Rather than evaluating hundreds of sites at a time, employees can now concentrate on selecting from a handful of locations deemed by eSite’s software to have the greatest potential. The narrowed focus is saving the company thousands of dollars in travel and related expenses each month that would otherwise go to assessing locations that don’t match the company’s optimal profiles.
Avoid Legal Disputes
CLIENT: National healthcare network
BACKGROUND: As the network grows, more private doctors are added to each market
CHALLENGE: Individual practices were often in competition for customers
SOLUTION: Map precise territory boundaries for each individual office
RESULT: Lawsuits and dispute resolution cases are virtually eliminated
ACCURATE MAPPING ELIMINATES DISPUTE RESOLUTIONS
One of our clients is a membership-based network of independent physicians. Naturally, the individual practices within this network are often in competition for customers. To help the company prevent practices from disagreeing over access to customers, we mapped precise territory boundaries for each office and removed any overlap. As a result, there is no guesswork when it comes to determining the customers to whom each practice has exclusive rights. This seemingly simple step means our client is saving valuable time and money that would otherwise be going to dispute resolution and, possibly, lawsuits that are often the result of imprecisely mapped borders.
CLIENT: U.S. financial institution with nearly 2,000 branches
BACKGROUND: The bank was facing an unprecedented number of loan defaults
CHALLENGE: No way to accurately assess risk levels associated with new loans
SOLUTION: Analyze market conditions surrounding the location of assets
RESULT: eSite was able to predict, in more than 50 percent of loan requests, when a borrower was likely to default
LOCATIONAL ANALYSIS CAN SAVE LENDERS MILLIONS
When a 2,000-branch financial institution faced an unprecedented number of loan defaults, eSite helped the bank gain a comprehensive understanding of its commercial lending practices. By measuring the “market” risk associated with underwriting a loan—the economic, demographic and psychographic factors of doing business at a specific location—eSite found that, in more than 50% of loan requests, it can accurately predict when a borrower is likely to default. By analyzing these locational influences, the institution is now empowered to prevent hundreds of millions of dollars in charge-offs.