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Th B fit f I t t d B iTh B fit f I t t d B iThe Benefits of Integrated Business GIS Packages for Small BusinessesThe Benefits of Integrated Business GIS Packages for Small Businesses

University of RedlandsUniversity of Redlands Spatial Analysis for Business Conference

ESRI Business GIS SummitESRI Business GIS SummitApril 29, 2008

OverviewGIS and Small Business

BenefitsBenefitsConstraints

Integrated Business GISIntegrated Business GIS IBGIS Applications

without customer data A Tale of Two Tavernswithout customer data -A Tale of Two Tavernswith customer data - concentrated and dispersed

Delivering IBGIS to Small BusinessDelivering IBGIS to Small Businesscommerciallyacademicallyacademicallysupport organizations

GIS and Small Business

Benefits and ConstraintsBenefits and Constraints

GIS and Small Business

SpatialVisualizationHW & SW Costs Data Management

RelationshipsVisualization

S i lGIS Skill User Training

CommunicationSpatialAnalysis

GIS Skills User Training

Business GIS

Integrated Business GISIntegrated Business GIS

Business GIS?

Integrated Business GISProcedures

ModelsWi dWizards

Integrated Enterprise gExternal

Data

pData

Maps, TablesReports, Charts

Integrated Business GIS Applications

without customer data

A Tale of Two Taverns

The Corner Pub

Neighborhood bar with very poor reputationRecently purchased by community activist and y p y yentrepreneurObjective is to transition to a familyObjective is to transition to a family tavern/restaurant and entertainment centerDe-marketing existing customers whileDe-marketing existing customers while pioneering marketing new onesM t d t d t d t ff t thMust understand trade area to effect these changes

The Corner Pub

Table 1: The Corner Pub’s Ring-Based Market Area

Measure 0-.5 Miles .5 – 1.0 Miles

Population 5,869 11,763

Racial composition 52% African American 57% White

Family HH as % of Total HH 47% 42%

Average Family Size 2.14 2.02

Average HH Income $34,311 $37,546

Median HH Net Worth $29,482 $23,475

Percent Home Ownership 36% 32%

Alcoholic Beverage Spending Per Capita $324 $238

The Corner Pub

The Corner Pub’s revitalization and growth gstrategyDe-market undesirable customersDe market undesirable customersReach community with moderately priced food and beverages host community eventsand beverages, host community eventsReach university markets with special events,

t i l d h ti l b tisports specials and hosting club meetingsReach cultural and entertainment market with live music, cultural and community events

FM’s Tavern

FM’s is a new tavern in a river city yDowntown revitalization projectFocus on entertainment and diningFocus on entertainment and diningModest retail base in downtown areaSignificant competition from regional shoppingarea and mallChallenge: Which trade area model most enhances understanding of customer baseg

FM’s Tavern

FM’s Tavern

Drive time trade area is the most appropriatepp pImmediate vicinity is not the most attractive customer basecustomer baseMuch food, beverage and entertainment spending in 13 minute trade area is externalspending in 13 minute trade area is externalHousehold entertainment spending is higher in 13 i t k t13 minute market areaCommunity Tapestry segments and their behaviors are different in the 6 and 13 minute areas

Integrated Business GIS Applications

with customer data

Concentrated and Dispersed

Sweetwater County Sentinel

Located in southeastern United StatesRural daily paper with local subscriber baseMost revenue is from advertisingMost revenue is from advertisingCompetition from regional newspaper and t l i i t ti l l di dtelevision stations, local radio and an area lifestyle magazine Wishes to profile customers to increase advertising revenue

Sweetwater County Sentinel

Sweetwater County Sentinel

Compared to the general county population, p g y p psubscribers are

OlderResidents of larger householdsHave more income and net worthHave more income and net worthAre more likely to be home owners, andAre more likely to have some college educationAre more likely to have some college educationAre more likely to be in Midlife Junction segment

Differences are modest but important for someDifferences are modest, but important for some advertisers

Pocono Mountain Treasures

Located in Lake Harmony, PA in the PoconosyTourism dependent retailer specializing in local craft itemscraft itemsUses quarterly newsletter to maintain contact with customers and augment saleswith customers and augment salesWishes to initiate catalog marketing program to

d t f t lexpand out-of-store salesChallenge: To profile best current mail customers and use the profile to target ZIP codes with similar demographic characteristics

Pocono Mountain Treasures

Pocono Mountain TreasuresSales analysis reveals High segment, 30% of customers but > 70% of salescustomers but 70% of salesHigh segment ZIPs have higher than average levels of income and education, and,Are concentrated in 8 Community Tapestry segments With values and purchasing patterns to which PMTWith values and purchasing patterns to which PMT can appealTargeted ZIPs account for 6% of ZIPs and 9% of ghouseholds, which will increase response rate whenIn a 100,000 HH mailing, a one percentage point g p g pincrease in response rate results in and estimated $660K increase in sales over three years.

li i dDelivering Integrated Business GIS

to Small Businesses

Integrated GIS and Small Business

GIS ProfessionalsESRI?Staff, ConsultantsBA, BAO

ProceduresModels

Wizards

Integrated Enterprise External Data

pData

Maps, TablesReports, Charts

Higher Educationteaching, service

SBAEco Dev Agencies

Questions

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Th B fit f I t t d B iTh B fit f I t t d B iThe Benefits of Integrated Business GIS Packages for Small BusinessesThe Benefits of Integrated Business GIS Packages for Small Businesses

University of RedlandsUniversity of Redlands Spatial Analysis for Business Conference

ESRI Business GIS SummitESRI Business GIS SummitApril 29, 2008