The pace of digital transformation just keeps increasing, and 92% of households are now online, but in some industries, there just isn’t a substitute for the in-person experience. Many different industries still rely on visitor foot traffic to generate revenue through a combination of product or service sales, fees, and additional on-site offerings.
The Places Where In-Person Never Goes Out-of-Style
Our latest report, “Does Foot Traffic Predict Business Performance?” shows how analysts can use location intelligence in conjunction with quarterly earnings to predict future results. While foot traffic data and revenue can be highly correlated even in industries where e-commerce sales come into play, our analysis shows that foot traffic is an especially strong indicator for casual dining restaurants, movie theaters, and rental cars. Places, in short, where revenues are highly dependent on the number of people that walk through the front door.
What other industries rely heavily on consumer foot traffic and are likely to show a strong correlation between foot traffic and overall business performance?
1. Amusement Parks and Family Entertainment Centers
People of all ages can find something to enjoy at these establishments, which include bowling alleys, miniature golf courses, amusement parks, and arcades. The sale of tickets, refreshments, and goods is contingent on people actually showing up in person.
2. Auto Dealerships
Despite the shift toward online price negotiations, customers still prefer to visit physical dealerships to take test drives and complete their purchases of new and used cars. Regular maintenance and repairs are a win-win for both the customer and the service department.
3. Beauty and Salon Services
Salons and beauty services, which provide haircuts, styling, spa treatments, and other personal services, rely heavily on consumer foot traffic. Services such as haircuts, facials, and pedicures require in-person visits. Salons also earn revenue through product sales and add-on treatments, but these are typically purchased in-store rather than online.
4. Fitness and Wellness Centers
Gyms, fitness studios, and wellness centers offer equipment and services for physical activity, health, and relaxation. Aside from the occasional online class, gyms and wellness studios rely on people to physically attend classes, use gym equipment, and access spa services. Memberships, class fees, and personal training sessions all help to drive revenue.
5. Hospitality and Tourism
Hotels, resorts, and other lodging establishments, as well as tourist attractions and services, rely heavily on walk-in customers. Hotels earn money from room reservations, whereas attractions and add-on services like guided tours make money from ticket sales and on-site purchases.
6. Malls and Shopping Centers
Large retail complexes, like malls or outlet centers, that house a variety of stores and services rely on foot traffic for rent from retail tenants, as well as income from common area fees, advertising, and events. A mall's overall shopping experience also helps to boost its revenue.
7. Tradeshows and Events
Last but not least, event organizers rely on ticket sales, exhibitor fees, sponsorships, and booth rentals to generate revenue. In-person interactions at these events facilitate deal-making and knowledge sharing, resulting in value for attendees.
A Resource for More Than Revenue Predictions
In 2024, foot traffic will be an essential data source for anyone interested in understanding how people move in the physical world. Download our most recent report, "Does Foot Traffic Predict Business Performance?" for additional examples and a detailed discussion of using foot traffic data to predict revenues.
We have established that real estate investors and investors in general can use foot traffic data to inform investment decisions, but location intelligence is a valuable tool for any brick-and-mortar business that needs to understand its customers, competitors, or the neighborhood in which it operates. Foot traffic data can help a brick-and-mortar business benchmark its performance against the competition or understand the entire buyer's journey, not to mention buyer habits and preferences. It can be used to determine the best location to expand a business or to determine how far its customers traveled.
Unacast’s highly accurate location analytics are a must-have for any business that relies on getting people in the door. With detailed analytics and insights based on consumer location data, businesses can not only determine the relationship between foot traffic and revenue, but also gain a much deeper understanding of their customers and competitors. Foot traffic data is a powerful indicator of not only business performance and consumer engagement, but also of larger market trends.
Unacast's recent merger with Gravy Analytics expands our team's capabilities, establishing Unacast as one of the world's most advanced location intelligence providers. If you want to learn more about how to use location intelligence in your business, contact us today.
