Everything you need to know about Foot Traffic Data

Use Cases Foot Traffic Data

• Retail

Foot Traffic Data gives you the insight to better understand your customers’ behavior patterns to maximize your profit. A comparison of foot traffic to the number of sales made will help you get insights into your conversion rates, as well as specific trends such as the effect of increased foot traffic on business and how it made the company more profitable. It can also help establish the least successful hours and the peak times to help retailers figure out staffing schedules. For example, the most skilled salesmen will be at the store during peak hours. While street-level establishments depend heavily on foot traffic, upper floors such as law firms or accountants can also benefit from this kind of data. It gives them an understanding of when their customers visit their offices and what are the hours when the maximum work gets done. 

• Urban Planning

While foot traffic data is beneficial in understanding consumer movement trends, leading to higher sales and revenue numbers, it can also be instrumental in urban planning. Foot traffic data shows areas that have an increased number of pedestrians. This helps urban designers ensure the proper placement of buildings along with other safety and aesthetic factors to protect pedestrians from vehicles or make their walk more enjoyable by installing a park. Planners can also rely on foot traffic data to estimate the density of the population in a particular area based on which they can integrate street trees, crosswalks, extended curbs, and other features into spatial planning. Through foot traffic data you can also estimate whether the area will be popular with shoppers. 

• Insurance

Leveraging the knowledge of foot traffic data enables insurance companies to smarter risk analysis. Foot traffic data provides the scope for predictive assessment which means an insurance company can evaluate the risk factors of a particular area or building based on the number of people. For example, if the company wants to insure a shop that is located in an accident-prone area, foot traffic data can provide insights into risk factors such as property damage and how many people will be affected by it. It provides a granular perspective on where people are going and how their movement and behavior change according to the location that they are in. This kind of perspective helps insurance companies understand the changing mixes of revenue such as how many people who used to dine in now opt for take-out food. 

• Real Estate

Foot traffic data analysis is beneficial for real estate value evaluation. It is a quick and reliable method for investors to estimate the commercial value of certain properties, whether it is a residential building or a shopping complex. The advantage of using foot traffic data, in this case, is that it goes beyond property type or tenant data; instead, it provides information on behavioral trends such as frequency or length of visits. Data experts such as Echo Analytics not only offer comparable data for locations of interest but also allow investors to identify the financial potential of an area or a location to avoid any kind of investment risks. 

• Commercial Rent Pricing

Foot traffic also determines commercial rent pricing in your chosen location of interest. However, it is interesting to know that if your location of interest has higher foot traffic it doesn’t necessarily mean that your business will be profitable. On the contrary, it can command higher rents. Locations that are in the middle of a bustling market – that are usually ideal for any store – can be expensive to operate in, due to the high demand. One way to ensure that you are not spending too much on rent is to set up shop in a less crowded area. But this would mean you would have to understand your customers’ behavior and foot traffic data can help you with that. It can give you a detailed idea about your customer behavior that can determine your product quality and reasonable pricing.