Innovative go-to-market strategy for a retail startup
Neon partnered with a new retail brand to develop a predictive analytics tool to optimize store placement, increase customer acquisition, and ultimately drive revenue.
When a newly-minted retail startup needed a way to take on bigger brands with deeper pockets, they came to Neon. We worked closely with our partner to determine their competitive advantage, and ultimately, developed a go-to-market strategy and predictive analytics tool based on optimizing retail store placement — giving this small business the benefits of enterprise-level insights.
We learned that the top retail stores outperform their competition by up to $7 million a year. Our research also revealed the main reason why: shoppers value location above selection, service, brand, and even price. This startup didn’t have the luxury of trial and error; we had to get it right the first time. Multinational chains, like Starbucks, have proven tools to identify high-potential retail sites, but this brand’s users have different needs than coffee drinkers. A verified store-siting model didn’t exist, so we built one from scratch for our partner.
By combining competitor store locations, demographic information, and anonymized mobility data, we analyzed the travel patterns of our target customers. The resulting tool, Neon Predict, enabled us to pinpoint convenient, high-traffic locations near consumers and plan the most desirable sites for the brand’s retail stores. Local businesses are the backbone of our community; we were determined to give this homegrown retailer a competitive edge.
Our partner used Neon Predict to choose the most convenient locations for its customers. As these stores began to open, we also provided tactical marketing and brand development work. Neon Predict will continue to inform the company’s expansion, and it can also be configured to support other verticals. Entering a $3 billion-dollar market with entrenched players backed by big money can be daunting. But a strategic blend of localized intelligence and data science empowers this small business to stand tall and give its customers an industry-leading experience.