The location of a business can be a major deciding factor in determining whether it sinks or floats. But choosing a location goes beyond just looking at the area and hoping that customers come in and spend their money with you. A business must take into consideration a variety of variables while selecting the best location – variables that you may not even know have an effect.

1.     Not too close but not too far- Opening a store too close to a competitor or another location of the same brand may hurt that store’s performance. On the other hand, opening a store in the middle of nowhere with no competitors nearby often means that there isn’t a strong market for your business, which can also result in poor performance. Executives seeking out a prime location to open a new store often use Geo-Maps to recognize and identify opportunity and how many potential customers are in the area, among other features.

2.     Data matters- To find the best locations, companies now often look at data more than they do the physical place. This data includes values such as demographics, traffic patterns, competition, consumer behavior, and how far a potential customer would be willing to travel for your services. This data helps assure a company that they are selecting an appropriate location for their new store that will bring in profit.

3.     Planning for the future- Companies not only need to look at the customer base when opening a new location, but also the future. “They need to know where they will be over the 10-to-25 year lifetime of the investment they make in physical space” explains Mark Cohen, professor of marketing in the retailing studies department of Columbia University, in an article on Forbes.com.

4.     A more personalized experience-  A more personalized experience for the customer begins with location strategy. Tony Costa writes in an article on hbr.org, “The ability to identify, track, and target customers in physical locations will enable companies to extend preferential status and rewards to customers based on their behaviors, rewarding them based on the number and frequency of visits, where they go in venues, and their exclusive loyalty.” This personalization will support a company's success in the Age of the Customer.