A map on your phone (and how it’s changing where a business sets up shop)
This is a random post, but up until about three years ago, I had a dumb phone (aka a flip phone). I survived as long as I could, but after I moved to Boston I would continually get lost doing basic things like getting to the office.
I finally bit the bullet and upgraded to a smart phone because I thought it would be helpful to have a map on my phone.
Fast forward a few years. My wife and I explored random places along the Maine coast. A few spots we stopped at were directly on Route 1 (the busiest road), but the majority were not.
Instead, I used Google maps to find new spots we hadn’t checked out. This technology has been around for a while, but let me explain why I think it’s disruptive.
Impulse vs. Destination
I worked in an economic development department for a few months in college and I learned the difference between a destination business vs. an impulse business.
A destination business pulls people off the main roadways as the task the customer is trying to perform is specific and focused. For example, I don’t randomly decide to get my teeth cleaned when I drive by the dentist office.
A impulse business relies on impulse to generate sales (as the name suggests). For example, if I’m hungry and see a McDonalds sign up ahead, I’ll pull off and perform the task of stuffing my face with a hamburger.
More exploration
In the past, if you were a business that thrived on impulse sales, you would compete for the prime real estate along the main roadways and pay a premium to do so. It was your primary customer acquisition channel (capturing drive-by attention).
A good example of this is if you drive by a motel/hotel and see a vacancy sign, that’s an attempt to sell to people looking for a place to stay at the last minute.
Over the course of the trip, I was continually shocked at how many of these places/businesses we visited would have been invisible without Google Maps & user reviews. The reviews enable curation, while the maps show you exactly how to get there.
For example, in Maine here’s a couple thriving businesses that are literally in the middle of nowhere:
These businesses would be long-gone if they relied on drive-by interest.
Ramifications
I find this fascinating, mostly because I grew up in the middle of nowhere and think it would be cool to see more of this happen in the future.
Next, the Instagram generation is looking for unique photo-worthy experiences, and the place on the side of Route 1 won’t cut it anymore. The places you visit is more closely tied to your identity.
Finally, I also believe this trend levels the playing field by lowering the barriers to building a business. Instead of focusing on finding the perfect location ($$$$), owners can focus on building a great product that captures enough attention/interest to encourage exploration ($$).
