The Customer Address and Transaction (CAT) survey is one the most useful tools for determining your trade area and market penetration. How the data is collected is quite simple: customers are asked where they live and how much they spent.
Once the interviews have been conducted you can:
- Verify how much business you draw from your trade area
- Determine your sales penetration rates for each sector in your trade area
- Identify areas where the store is weak and strong
Location and market research consultant Pete Davis has administered thousands of CAT surveys. Davis said the data is useful for those wishing to “take a temperature,” of their trade area, to find out how effective they are against competition, or especially important, if you’re looking at adding a second location, “so you can calculate the potential cannibalization on the first store,” he added.
A CAT survey is an important tool for any businesses engaged in a strategic market planning process. To find out more about the benefits of a CAT survey, contact:
Pete Davis, 360-344-4104, PeteDavis@cdsconsulting.coop.