Finding Your Next Branch Site With A Data-Driven Approach
Forget the fact that Halloween is just around the corner and dressing up like a Pirate is fun (and timeless), as a Retail Banker eyeing (insert pun here) your next branch location, “X” will always mark the spot.
In the old days, heck, even now, most approach a new branch’s site selection with a little intuition and a couple phone calls. The classic scenario unfolds like this: Boss says we need to grow and growing means a new branch. Bankers talk to one another and decide there’s a nice pocket in town, or in the next county over, that is begging for a new branch. After all, you don’t have a branch within at least a 10 mile radius.
You pull out a map (or Google) and pick the street corner that you’d like to be on. A couple phone calls later, you’re in luck because a site just happens to be available.
Now, if you had applied a data-driven approach to this methodology, you’d soon learn (instead of the hard way) that your new-found location is not only on the wrong street corner, but it may very well be in the wrong part of town entirely.
In this magical universe, where data is applied to your branch endeavor, the data will ultimately point you to where the branch should be located.
By combining up to 12 data points and mixing them into our custom and proprietary algorithms, the LEVEL5 Consulting Pirates (lead by Captain John Hyche) have been helping our clients find where the treasure is by locating the ideal address in the ideal market suited to fit your strategic goals and objectives.
Multiple and Variable “X’s”
When it’s all said and done, and the data has been run, we actually deliver you several “X’s” as viable options. The “X” represents the site, but there is a lot of data science behind that recommendation. All you need to know at this point is that the recommendation is showing a very complicated output of growth, budget needed and return on investment.
Different parts of town, different zip codes, and even different street corners have different outputs. These “X’s” will show the sliding scale of these critical elements in your decision:
Growth – Is that address rooted in a stable, declining, or growing part of town? Do people live in and/or frequent the area? Is trade moving up or downtown?
Budget – What is it going to cost you to put a location there? Do you have a fixed budget? Are you willing to spend what it takes to be at that site (at least for the right reasons)?
ROI – Does the forecasting and expense calculate to a percent that you and others are comfortable with?
Be A Pirate
So, the next time you are tasked with growing your branch network, get out your treasure map, put on your eyepatch, and hoist the sails – but don’t forget your shipmates. The good folks at LEVEL5 have been helping others just like you find the “X” on the map for years. Contact Us now to get your treasure hunt started today.