Case 1.

The mid-size mall outside the big city, with basic marketing resources.

The
Challenge

Evaluating success of marketing campaigns and the performance of mall managers. Knowing how to modernize the property, strengthen the brand and maintain the optimum tenant mix.

This mall owner needed to measure how effectively the managers were performing in running various marketing campaigns at his mall. To protect his mall’s branding and status in a changing social environment, the owner also wanted to know what type of new tenants to attract and which tenants to remove or relocate within the mall in order to maintain the best brand possible for their mall in these changing times. Watching out for upcoming competition, the owner also questioned how soon the mall would need to be renovated or expanded and then, to finance any improvements, how to produce useful reports for the bank.

Specifically, when mall management and tenants created a marketing budget, in most malls it will include the running of mall-wide campaigns and events. Without real data, it was impossible to predict success. Of course, events such as Christmas and Valentine’s Day should yield additional revenue for the tenants. At this mall, unfortunately, the effectiveness of these initiatives was so difficult to quantify that no one really could confirm exactly that these events were a success.

Our
Solution.

A solution to capture each mall visitor's origin and the performance of each tenant. Interactive Data Visualization to compare current and previous campaigns. Catchment Dynamic Analysis together with Tenancy Mix Optimization to report and predict the progress of rental revenue.

With these new tools, the managers negotiated better rental rates with tenants and matched their marketing campaigns to the capacity and needs of their shopping customers. The mall relocated the Christmas display and added pop-up shops in that area.

The Propixious modules were used to predict mall revenue and to evaluate if a renovation project would be appropriate and affordable. With a thorough analysis of the customer catchment, the mall saw which products best matched their target group of mostly older people. So they substituted an electronics shop for a healthcare store in their tenant mix, expanded the children’s care play area and enlarged the parking lot.

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Modules Used in This Case Study

Summary: Data Visualization really adds value to the decision-making process when the underlying data is collected interactively.

When you can interactively explore the data represented in visual charts or graphs, you can predict performance outcome and identify areas of attention more quickly than with static standard reports using pre-set criteria. Propixious can recommend various types of interactive reporting methods such as Ad hoc demand reports to get more current data for the existing areas covered in a standard report. By linking data items from different sources, a Drill Down may reveal hidden information in a specific context. With Statistical Analysis you uncover underlying patterns and trends so you can use scarce resources best. And Predictive Modeling provides next-best-action recommendations during customer interactions in real-time.

Summary: Defining exactly who the mall’s target customers are.

To determine a mall catchment area we use knowledge of the competition, topography and drive-time zones. This will show us the market capacity of a shopping mall, providing crucial information on demographics and purchasing power. The more accurate you can be, the wiser you can plan marketing investment and competitor analysis.

Until now, defining the trade area has been a question of using pre-determined criteria and measuring geographic distance (Circular buffer), the travel time by car (Driving-time zone), and by assigning relative importance to certain zones near the mall (Proximity zones).

Propixious now offers a dynamic process without pre-set criteria. We identify exactly where to prioritize your marketing, based on data collected from a Virtual Fidelity Card and a Customer App. This data from the user is aggregated, analyzed and presented graphically to reveal a unique catchment definition to maximize success.ping malls to translate the management strategies into popular apps. Apps create generous amounts of valuable information used for segmenting and profiling customers.

Summary: Define your mall’s optimal tenancy mix, balancing shop typologies and rental levels, and purposeful space allocation in the mall.

What is the ideal tenancy mix desired by mall developers, retailers and consumers? You certainly want to avoid a mismatch between the needs and buying capacity of the consumers in the mall's catchment area and the kind of tenants located in the mall.

The best analysis of tenancy mix produces a business layout that is unique to a specific mall in a specific area. A tenancy mix analysis gives invaluable insight into a mall’s future financial performance. And, an assessment of achievable rental levels and cash flow estimations is the key reference when deciding about a project’s financing.

For a complete view, Propixious uses its dynamic analysis of the catchment area to match the demands of the consumers to the supply of the mall. The Propixious solution applies a multitude of information types such as financial performance of the tenants, comparative analysis against the same shop in a different location and predictive analysis of scenarios. The latter is particularly useful when a leasing contract expires or is being renegotiated.

The benefits.

Specific and targeted campaigns resulted in higher conversion rates. Tenants became more aware of what types of promotions performed well. A deeper analysis of the catchment gave the management confidence to relocate certain tenants in the mall and to invest in structural improvements. With those new detailed reports, their chances for finding financing went up because they could now convince the bank that the new plans really matched the mall’s services with their potential customers, and predicted their rental revenue.

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