Where are the Right Customers for a Business: Dining Out in Miami Beach, FL
A broker in Miami Beach, FL, is working with a client who wants to open a restaurant. The client plans to serve trendy foods and emphasize healthy meals — breakfast, lunch and dinner — at a middle price point. The client’s target market is young adults who eat out a lot. She wants to know if there are certain areas within Miami Beach that would be ideal for her restaurant.
The broker will use RPR to analyze the spending patterns of his client’s target market, pinpoint a trade area to situate the restaurant, and then search for available properties, using a commercial analysis called “Where are the Right Customers for a Business?” This analysis uses RPR’s demographic, psychographic and spending data, as well as information about existing businesses, to identify areas with the greatest concentration of potential customers for the business. RPR partners with leading B2B data providers, such as ESRI, to power this analysis.
When using this tool, the broker provides information about his client’s desired customer base, and then searches a larger geographic area to pinpoint target locations for the business within the larger geography.
The broker in Miami Beach starts with a general idea about a geographic area and several attributes that his client is looking for in customers: age range, location in an urban area with dense population and a high level of spending on meals at restaurants, in this case. The analysis results will highlight trade areas that meet these criteria. There are two steps to setting up the analysis. (Go to the Homepage > Search Tools tab OR Go to Analysis button > “Where are the Right Customers for a Business?”) First, the broker enters the broad geographical area he wants to search. In this case, it’s “Miami Beach, FL.” Then, he enters the attributes using the dropdowns. He chooses:
- Facts & Stats > Population Stats > Population Density
- What They Buy > Dining Out > All Dining Out at Restaurants
- Who They Are > Age > Early Adulthood
By hovering over the question mark at the end of any of the strings of variables, you can see a description. For instance, the “Early Adulthood” variable accounts for people in their 20s and 30s. Note that a broad range of attributes are available for searching: age, income, education, consumer spending and trends like population growth, and even comparisons, like areas where chicken consumption exceeds beef consumption.
When using any of the analytical tools, note that RPR is always defaulted to looking for lots of the people the customer wants to find. If a user is looking for teenagers and selects Who They Are > Age > Teens, the analysis will find places within a trade area where there are more teens than the average for the area overall. If the user is looking for people with higher-than-average disposable income, the selection Who They Are > Income > Average Disposable Income will highlight places where the disposable income is above average.
After selecting the Run Analysis button, the user will see the analysis results panel, showing the best trade area matches in the darkest purple color. For this area, the display begins by showing ZIP codes, but that might still be too broad an area. The broker can click on the geography pull-down menu and select “neighborhoods” to drill down to a smaller area to search. The broker will see that four areas appear as the best match: North Bay Island, Treasure Estates, Treasure Island Commercial and Treasure Plaza.
The broker can adjust his results, after reviewing his top matches, to explore the results further. He can go back to the analysis results panel and adjust the sliders to see different outcomes. For instance, if he wanted to only focus on neighborhoods with a concentration of people in their 20s and 30s, he could click the box to turn off population density and spending. When he reruns the analysis by clicking the “Update” button, he will see that Altos Del Mar South, on the coast, has the most 20- and 30-somethings, and his other options have wildly changed. The results that are shown are based on the percentage of the population. So while Atlantic Heights, the second on the list is 20 percent of the population, it only has 109 people living in it. So maybe Bay Harbor Island, with a larger overall population of 20- and 30-somethings, is better.
The broker knows that his client is also looking for an oceanfront location. So he returns to his initial search and selects the coastal areas that are a “better” demographic match, but the best overall match based on a desired location.
Next, he checks the box to the left of each neighborhood’s name to search for listings in that area. He chooses the Northshore, Oceanfront and Flamingo/Lummus trade areas and clicks search. After reviewing the options, he finds a commercial space that could work for the new restaurant location.
The broker chooses the elements to include in a Property Report and generates a PDF on the spot, and emails it directly to the client. (Go to the Property Details page > Reports tab > Choose elements > Get Report button). He has fodder for a fruitful discussion with the restaurateur.