The Local Traders Program is an initiative being run by Neighbourlytics to provide local traders with access to vital lifestyle data across their community. Find out more about the program by checking out the Local Trader's Program FAQs or download the brochure here.
What is a 'trade area'
A trade area is the geographic zone from which your main street location gets its customers on any given month. This is essentially the home location of your potential customers.
How is a 'trade area' calculated?
Although trade areas are a staple of retail planning, there is no consistent method of defining your trade area. Here are some examples of the different methods:
1. By neighbourhood visitation - where are visitors to the neighbourhood coming from?
By understanding where visitors to a main street are already coming from, you can understand who your potential customers are. These are the people that are already visiting the location regularly, and are therefore great target customers for your business.
How to get this information: Our visitation tools utilise mobile phone movement data to plot where visitors come from month by month.
>> Check out our Visitation tool for any Australian location to see the home location of visitors to your neighbourhood
2. By accessibility - who can access your location within a specified walking or driving distance?
While visitation data can show who DOES come to your location, accessibility analysis will show who COULD come regularly. By plotting the walking and/or driving catchment of your store, you can see where your 'local' customers can come from within a short walk or drive. And it can be surprising!
How to get this information: Utilising an accessibility tool, you can plot the walking or driving 'isochrone'- essentially the area that is able to be reached within a specific time, by car, or on foot.
>> Check out our Accessibility tool for any Australian location to see your 10 minute walking and driving catchments
3. By customer mapping - where do your current customers live?
Mapping the home location of your actual customers is a classic way to map out a trade area. This provides insight into where your existing customers live, however use this data with caution: as it only reveals who you already have patronage from, and won't help you learn about your potential customers.
How to get this information: This information is typically connected to your payment systems, customer shipping information, or you may be able to access it by asking your customers.
Why is understanding my 'trade area' valuable?
Understanding your trade area helps you focus marketing efforts, inform your offer and find the best store location. Here are three ideas for things you can do with trade area data:
- Optimised Social Media Advertising: By mapping their trade area, traders can target their social media ads more effectively. For instance, if a bookstore sees a high concentration of potential customers in a specific neighbourhood, they can run localised ads promoting upcoming author events to that area.
- Store Layout and Inventory: Mapping helps traders understand where their customers are coming from, which can influence store layout and inventory choices. If a boutique finds most of its customers are from nearby areas, it might prioritise popular items or new arrivals that appeal to local tastes.
- Community Engagement: Knowing the boundaries of your trade area allows traders to plan community events that will draw in local residents. For example, a coffee shop might host a neighbourhood appreciation day with special discounts for people living within the mapped trade area.
Want to access trade area data monthly?
Register your interest in receiving trade area data for your location monthly by adding your name to our Local Trader Program.
REGISTER HERE
Find out more about the Local Trader Program here