Mastering retail predictive analytics: How the combination of mass mobile and leasing data is reshaping the retail leasing landscape

Retail predictive analytics has come a long way since its inception, with several ground-breaking innovations transforming the industry. From Geographic Information Systems to Household Level Datasets, these advancements have greatly improved the accuracy and precision of customer profiling efforts. However, the latest technology to make waves in the retail world is Massive Mobile Data (MMD).

In simple terms, MMD refers to collecting geographic data from mobile devices. Two primary sources gather this data: mobile phones and location-enabled applications. While mobile phones are a widely used data source, technology and data storage constraints limit their accuracy. On the other hand, location-enabled apps provide higher accuracy, making them a valuable source of MMD.

So, how can MMD benefit retailers and landlords? Let’s take a closer look at some of its applications:

1. Customer distribution data: MMD can help retailers and landlords create highly accurate trade area catchments to understand where their customers are coming from, what time of day they visit, and their routes. This information can help optimise store locations and marketing strategies.

2. Competitive activity: Retailers can use MMD to estimate their competitors’ relative customer traffic and sales volume.

3. Cross-shopping activity: MMD can determine what other competitive or complementary stores or restaurants customers patronise (i.e., what proportion of a shopping centre’s customers within, say, a Woolworths supermarket cross-shop at a specific retailer regularly).

This information is compelling for Landlords and can be combined with retail leasing data and retail lease management practices to inform leasing decisions, such as which tenants to bring into a shopping centre, what rents they pay, and their rental thresholds.

Lessees can use this tool to analyse competitors within shopping centres, estimate customer traffic, and understand their competitors’ rental positions to justify entry into a centre based on rent and sales benchmarks. For example, suppose a competitor pays $2,000/m² net in rent in a shopping centre, and their estimated sales are showing $15,000/m².

In Australia, companies like Leaseinfo combine MMD and leasing data to create game-changing tools for retailers and landlords. It provides a deeper understanding of customer behaviour and market trends, allowing for more strategic decision-making and leading to increased sales and profitability. As the retail industry becomes more competitive, using MMD will become increasingly crucial in staying ahead of the curve and driving success.

Learn more about LeaseInfo by visiting our About Us or Book a Demo to see how it can help you today.

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