A multivariate study to increase customer knowledge

Multivariate analysis is a statistical analysis technique used to assess the relationship between multiple variables in a data set. In the context of marketing, this technique is used to analyze how different variables, such as consumer demographics, buying behaviors and consumer preferences, relate to each other and how they can influence marketing decisions.

Advanced statistical techniques are used to analyze large data sets and detect patterns and relationships between variables. The goal of multivariate study is to identify patterns and trends in the data that can be used to make informed decisions about marketing and communication strategies.

Multivariate analysis to increase customer insight

By using multivariate analysis techniques, marketers can identify the variables that have the greatest influence on consumer behavior and purchasing decisions. For this client, it certainly presented itself as the optimal action to implement.

Our client presented us with a rather depressed geographical area of a major city with serious problems of mobility, security and public space. There he wanted to build a shopping center, so it was necessary to know what was the right offer in quantity for the different categories of products and services. All in a time span from 2018 to 2030.

The client:

An economic group that within its most important businesses has real estate and the construction of shopping centers.

The problem to solve:

The complexity lay in the fact that, due to the infrastructure works of the regional government and the P. O. T (Plan de Ordenamiento Territorial). This area would go from being the last in consumption potential to evolve in the next 20 years and become one of the most iconic and emblematic places in the city. In addition to being the most interesting from the point of view of consumption potential.

Some of the questions our client wanted us to help him answer were: how many stores should be opened, which categories, which brands, how would we demonstrate to these brands the evolution of the area so that they would be interested in the mall, how many potential customers would we have for each and every store in the next 20 years, how would the current shopping centers in the city impact us, and how would the commercial areas surrounding the mall be transformed, among many others.

GBA Smart Marketing® Solution: Multivariate Study

To respond to this imposing business challenge, we considered that the solution was to know the consumer in the area. At different moments in time and from different dimensions of information. Starting by understanding the main macroeconomic data of the area, the city and the region for the years 2020, 2025 and 2030.

We then conducted different sociodemographic analyses to understand how the population and its age and gender composition would change over time. We also analyzed the consumption behavior of each and every category and compared it with the city’s commercial offer.

We incorporated public transport and its evolution into the analysis, as well as the current and future coverage of the road infrastructure. Its extensions and public transport stations along with the city’s pedestrian and vehicular traffic. In addition to three nearby municipalities from where more than 600,000 people arrived daily for different reasons (work, students, among others).

With these inputs we were able to construct isochrones at different times and hours of the day for the years mentioned, which allowed us to understand the changes in the service area of the future shopping center.

We considered of great value to characterize the floating population arriving to the city for tourism and labor reasons. Not only from nearby municipalities, but also from other cities in the country and even from other countries. Similarly, we incorporated business information to see the impact of business populations on current and future consumption in the area.

Finally, using the Smart Analytics by GBA Smart Marketing® suite of solutions, we segmented the population into eight groups. Each one of them was formed by four sub-segments. Based on this knowledge, we determined the ideal offer by categories, each one with up to three brand options that matched the consumption habits of each group.

The result:

With GBA Smart Marketing®’s consumer segmentation our client established a synthetic reading key of socio-demographic and household behavioral profiles, income and consumption categories.
The analysis of the service area, competitors and POIS (Points of Interest) allowed us to know which categories were most in demand and which were not.
Changes in the service area, based on the evolution of road infrastructure and safety conditions. They made it possible to dimension the size of the target population at each moment in time.
Thus, we understand that the multivariate study is used to identify the factors that have the greatest influence on customer satisfaction, such as product quality, price, customer service and brand. By understanding the factors that influence customer satisfaction, companies can take steps to improve the customer experience and increase customer loyalty.

For GBA Smart Marketing®, the value and interpretation of data plays a key role in the development and innovation of our portfolio of customized solutions for each of our clients.

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