The time for branch expansion has reached your financial institution’s doorstep. Whether initiated by your senior management team or your board of directors, the first step recommended is a deep dive into the available data. Market intelligence provides the insight needed to select the right location and the best potential for success. Consider these four benefits of market intelligence in branch expansion:
Informed Decision Making
You’ve heard it from every real estate professional you know… Location is key. Utilizing data insights to identify high-traffic areas and unique points of contact leads to a more strategic expansion program with reduced risk. Elevating your brand by placing it in front of as many people as possible on a daily basis and being a convenient stop on their established daily route is the key to success.
When working to balance real estate costs with the potential foot traffic and brand visibility, there will be particular locations that emerge as more viable than others. Reducing unnecessary expenses up front will help maximize future revenue potential. Trust us, your chief financial officer and accounting team will agree that cost optimization is important..
Robust Customer/Member Targeting
The data gleaned helps you to determine the marketing initiatives and product offerings the branch should provide to target your ideal customer/member. Understanding your audience is key. However, it is much more than demographics and preferences. Market intelligence data should also account for psychographics (i.e., the needs, wants, preconceived notions, and emotions) of your target audience or ideal customer/member.
Workforce Management Opportunity
Before launching an expansion program, you will need to determine if there is a skilled and viable workforce present to support the branch and the expanded business the branch will provide. In addition to location data, consider data provided by local chambers of commerce and business analysts for a comprehensive look.
Regardless of the impotence to expand, a complete understanding of market intelligence and a well thought out plan is essential. If you are looking for a strategic partner to help your financial institution with its expansion or transformation needs, click here.