Determining trade area penetration
Trade area penetration calculates the penetration for each trade area. A Trade Area Penetration report is based on the number of customers within a trade area compared to a base value, such as total households.
The image below shows a three ring customer derived trade area. After trade areas are created with customer data, trade area penetration can be determined. The BA_CUST field shows the number of customers in each ring. The BA_BASEVAL field shows the total households. The BA_BASEVAL fields in blue show households per ring. The penetration rate, shown in the BA_MKT_P field, is thematically shaded on the map. A value of .41 means that there is 41% penetration in this section of the trade area. This is based on the number of customers in each ring compared to the total households. Alternatively, you can show the penetration rate based on a weighted value such as sales per customer.
Learn more about Trade Area Penetration.