How Is Trade Area Data Derived?
The Trade Area application, currently available within the Spectus Data Cleanroom, utilizes the visits table and the home-work table. By selecting a set of places and a period of time, we are able to consider all visitors to a given place and where they live and work at the time of visit. Trade Area analysis provides valuable insight into your customers’ demographics and spending potential, surrounding transportation networks, and demand by store location. This data can inform site selection, inventory planning, and competitive intelligence.
All Trade Area analysis is done in a privacy-safe way by using only the Census Block Group level, rather than the exact location.
In order to define the “cannibalization index”, we use Trade Area polygons which allow us to evaluate how much the trade area polygon of a given POI intersects with the trade area polygons of other POIs by computing the area of the intersection of two trade areas. This can be valuable to understand the extent to which different POIs may be cannibalizing the business of one another.