Most consumer focused businesses worry about customer cannibalization, or the risk of shifting consumers from one location to another with little overall net gain for the company. This concern is often referred to as being “over-stored” or saturated in a marketplace.
Forum’s unique customer retention and churn analytics focuses on a slight variation of this concern, and one that is commonly overlooked when evaluating real estate portfolios. We have the ability to help you determine the true net loss of consumers if you were to close or relocate a unit. Armed with the knowledge of how many consumers you may be leaving behind vs how many you may absorb through surrounding units allows you to make more informed decisions, calculate more accurate financial metrics, and go to market with greater confidence.
Real-time visualization and report generation through a customized SIMMS Online solution.
Excel-based reporting allows you to stream results seamlessly into other financial workbooks.
A national fast food brand calculates customer retention on the fly for every real estate decision related to unit closure or relocation to allow their NPV and IRR calculation to capture this critical input.
A national retailer utilizes SIMMS Online to estimate the number of consumers at risk of being diverted by new unit openings, and integrates these estimates into field-based site packets for final site approval.
Automate the answer to customer retention. If you close a unit, what is the real net incremental loss in revenue or market share?