Update: How a New Study Could Help Businesses in Sierra Madre

Update 2:00 p.m.:

Funding for the new Downtown Retail Market Demand Study is costing the city $30,000 and will come out of the city’s redevelopment fund, according to Danny Castro, Director of Development Services for Sierra Madre.

The City Council voted to provide funding for this project in June.

Sierra Madre’s redevelopment fund receives approximately $1.5 million annually, said Castro, with most of the money coming from property tax increment revenue.

Earlier:

Sierra Madre is characterized by unique local businesses that cater to the community. Buxton, a research firm that specializes in customer psychographics, is putting together a study that will tell local businesses exactly what products and brands Sierra Madre consumers are purchasing.

The hope is that this info will enable local businesses to bring in more dollars and better meet customer needs.

The study will also serve as a tool for the city to determine what businesses are desired or would perform well in town. The idea is that the city could use this info to court these businesses to open up shop.

How does the study work?

Buxton first determined where Sierra Madre’s “market area “ is- it stretches slightly beyond town boundaries to the east and west but doesn’t extend across the 210 Freeway to the south. Lisa Hill, a representative from Buxton who gave a presentation on the study at City Hall last night, said that a business’ most loyal customers are the ones who live within a five to seven minute drive.

Then, Buxton gathers consumer data on the people in the market area, such as what coupons they redeem, television shows they watch, radio programs they listen to, websites they frequent, magazines they subscribe to, whether they own or lease a vehicle, their utility bill, what products they purchase (which is often tracked through store reward cards) and more.

The data will be analyzed to the point of uncovering not only which products, but which specific brands Sierra Madreans are most loyal to.

How can businesses use the study?

For example, if Buxton reveals that Sierra Madre consumers are purchasing a certain brand of lip gloss that’s found at a department store in a neighboring town, a local salon can then choose to carry that brand. That way, dollars are staying within the community.

What has the study found so far?

The study is still in its early stages, but initial data shows things that many residents probably already know- Sierra Madre is an affluent community with many Baby Boomers, families and couples who are conservative investors, own luxury cars, vacation abroad, and enjoy gardening, golfing and the theater.

When will the study be ready?

It’s expected to reach completion in January or February 2012.

Who will have access to the study?

The findings of the study will be open to the public and anyone will be able to view it.