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Micro Level Data: Are You Overlooking This Valuable Source of Real Estate Intelligence?
From The Buxton Co
In todayís big data crazy world, broad, macro level datasets such as demographics, psychographics, and business locations often get a lot of attention. Given the fact that this data was not readily available just a few decades ago, the enthusiasm for leveraging it isnít surprising.
But in our rush to embrace the possibilities that macro level data presents, itís possible to overlook the contributions that micro level data makes to real estate business intelligence.
Defining and Applying Micro Level Data
Why does looking beyond the trade area matter? In short, the trade area is only one piece of the performance puzzle. Understanding and analyzing performance drivers requires identifying and quantifying, to the extent possible, all relevant factors. Micro level data variable relationships can be tricky to quantify and may not be continuous, linear, or monotonic, but often are relevant because they define real estate requirements. For example, a business may need a certain minimum square footage, visibility ratings, and parking space in addition to a strong trade area in order to be successful.
Unlike macro level data, which is most often aggregated and purchased from third party sources, most consumer-facing businesses have access to their own site characteristic and other micro level data. Itís an untapped source of intelligence that can help to explain the nuances seen in macro level data. And because micro level data includes variables unique to your business, it can provide a competitive advantage through insights that only you can access.
The Quality vs. Quantity Debate
Fortunately, the quality of micro level data is something that businesses can control. By following best practices for data collection, such as establishing a scoring framework and/or working with a neutral third party to collect data on each site, you can gather valuable information to enhance your business intelligence solutions.
Finding the Balance: Combining Macro and Micro Level Datasets
Donít allow your organization to be caught in the trap of big data vs. ďsmall data.Ē Use both resources to aid in achieving your goals.
Learn more about using data in real estate intelligence
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