Turnover Prediction

What factors drive turnover?
Which branches are under-performing?
Where should you open more branches?

Knowing the turnover you can expect from a location is the key to assessing its performance. Using a range of techniques from regression to neural network technology, models have been constructed that incorporate not only geodemographic information but also data on the business mix, the client's own branch and sales data. SPA Marketing provides the consultancy know-how and has the systems to produce turnover models.

What Drives Turnover?
Many different factors may affect the performance of retail outlets; the people who live nearby, the store's location and characteristics and the staff who work there. From a whole list of variables, Regression Analysis seeks to determine which ones are the best 'predictors' of turnover. Because Turnover Prediction involves looking at a range of factors, SPA prefers a modular approach. We might start by looking at customers, catchment areas and competitors and then build in data on staff, branch characteristics and competition. From these analyses, SPA produces a Turnover Prediction Model.

Assess New Sites:
Avoid Disasters. The turnover of new sites can be predicted, avoiding the development of new locations with little sales potential.

Performance Analysis: Find Winners!
Predicted turnover can be compared with the actual sales of your outlets to find "over-performing" and "under-performing" branches. Which branches should be doing better? What are the characteristics of the branches that appear to be doing better than expected? What lessons can we learn for existing and potential new sites?

"What if" Analysis Experimenting with different values demonstrates the likely effect on turnover, for example, increased floorspace, a more qualified manager or reduced 'passing trade'.

Assess Competitors
Predict the turnover of competitors outlets with your model to see how well they should be doing.

Models You Can Use!
The aim of SPA turnover modelling projects is not only to produce the best models possible, but also to make these useable in the real world, on clients' own desktop PCs. SPA can implement turnover prediction models within an easy to use software system which you can have in your office.

To find out more about Turnover Prediction for your outlets, email or call on 01926 334978.

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SPA Marketing Systems Ltd
Leamington Spa, Warks, CV32 6PT
Tel 01926 334978
Email:info@spamarketing.co.uk or Contact us

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