When we started to design Polaris more than 2 years ago, Ubimo’s CTO, Oded Poncz, said that his vision for Polaris was to make any person in the marketing organization a mini data scientist. To achieve this, we have focused on building a platform that allows users to ask very complex questions and get highly actionable insights by clicking no more than 3 buttons.
The Polaris & me blog is an area where Ubimo team members and our clients can share insights and use cases demonstrating the power of Polaris.
Hope you enjoy reading!
Introducing Living Areas:
Last week we released a new capability, Living Areas, in Polaris that allows marketers to see, in real-time, where shoppers who visit their stores live. This capability allows marketers to better understand where to invest in marketing efforts (OOH, direct mail, digital, print etc.), how to improve customer services (e.g. delivery) and optimal locations for store openings. The living area tool is part of our store analytics suite, which allows marketers to map visitation habits and trends such as activity and distance traveled.
Here are the living area zones for IKEA’s 4 stores in the NYC Metropolitan Area:
The Elizabeth store
The Brooklyn store
The Long Island store
The Paramus store
When running this report, I noticed a few areas where IKEA doesn’t see a significant amount of shoppers.
Although IKEA’s customers are willing to drive the longest distance vs. competitor brands in order to shop at Ikea, 80% of ikea’s shoppers travel less than 7.9 miles from home to the store.
** source; Polaris Point of sales to Home distance tool
Still, IKEA has a few uncapitalized areas in the U.S. Using the Polaris living area Zones tool, I have identified an area in NYC where IKEA doesn’t have as many shoppers, relatively speaking.
As you can see in the map below, IKEA should consider opening a store in or near the Bronx. Upper East Side, White Plains or Stamford (CT) ….
IKEA NYC Metropolitan Area living area Zones
This is even more evident when comparing it to potential competitors such as Ashley Furniture, which has a store in New Rochelle, NY that is getting significant visitors from those areas that IKEA is missing.
As you can see below (using Polaris shopper analytics tools), It looks like the Ashley Furniture shoppers have a very similar demographic characteristic to Ikea shoppers (comparing the Ikea Paramus store to the Ashley Furniture New Rochelle store) which is another strong indicator that IKEA is missing shoppers by not having a store to cater to in that market.
Bottom Line: Although IKEA is the category leader in home improvement, when it comes to volume of shoppers in the NYC Metropolitan Area, there is still room to grow by adding more stores.
IKEA can also win more market share by focusing more marketing dollars on potential shoppers that live in those areas or improving accessibility to those areas with shuttles or free delivery services.