Retail today is a highly competitive market: retailers detsinations face a mammoth task in not only attracting new customers but also holding on to existing ones. Traditionally, consumers have been offered access to cards and special offers in return for loyalty – in fact, nearly three quarters of retailers offer such schemes, and retail destinations are now increasingly making this part of their marketing initiatives.
Yet despite this, 54% of consumers in the UK alone think it takes too long to earn these rewards, while a third regularly forgeting their cards. With so many retail businesses focussed on offers and schemes, how much do they really know about customer loyalty beyond this? The serious question that every retail needs to ask is “Do they really have any clue of the walk-in and how can they create a process for loyalty where loyalty is not completely dependent on the floor sales staff”
Most shoppers return to the same locations again and again, be it their local high street, shopping centre, or out of town retail park. Retail organisations need to be utilising this information to understand their regular customers.
Understand the current position:
Retail consumers offer a wealth of information, but only by bringing this data into one coherent stream can loyal customers be identified on merit. Before launching into changes to improve loyalty, retailers and shopping centers should ensure they fully understand their existing walk-ins and identify insights about what differentiates loyal customers from the rest.
Advanced footfall counting solutions riding on existing CCTV IP camera infrastructure enables retailers and shopping destinations identify who’s coming in the entrance is
- Are they a new walk-in or repeat footfall?
- What’s their age?
- What’s their gender?
- What’s their average time spent at destination?
- How many times have they visited?
- What are brands or isles they visit?
- What type of a footfall are they ? eg: general consumer, HNI, Loyal, Store Staff, vendor, Trouble maker, suspect etc. etc.
Crucially, this offers insights not only into who the shopper is, but also what their expectations are, and how they choose to interact with the store or centre. Based on merit consumers can be enrolled into a cardless loyalty program where they are identified at entry are given that special shopping experience based on past data ensuring that a retail businesses will be able to optimise the environment to drive value and keep the shoppers, new and returning, coming through the door.
Once retailers and shopping centres have identified the behaviour of loyal customers, this can be built upon with insights into pain points within the customer journey – and a key factor in picking out these components is the data generated by retail intelligence systems.
Retail organisations know customer service has a big impact on loyalty; most shoppers value well-trained employees who act as trusted advisors to make them feel special and valued when in store or navigating through the centre. Combining footfall analysis with transactional data will help retailers identify hidden trends and special needs/asks from shoppers which have led to the failure in completing their purchases & enable shopping destinations to identify which stores are not driving traffic, in order to get to the root cause of the problem.
There are a number of scenarios that can cause a drop in performance. For example, the data we produce for retailers often reveals visible dips in sales during times where there is an increase in casual staff on the shop floor, who may not be as familiar with the products as full-time staff. As a result of this insight, managers can devote more time to implementing training, or ensuring there is a balance of casual and experienced staff rostered at all times.
Retail businesses are always hunting for ways to keep customers interested and motivated to shop. There are tried and tested techniques – sales promotions, loyalty cards, and late night opening once a week, to name a few. Yet influences such as longer working hours, multi-channel routes to purchase, and dependence on technology are disrupting the existing rules of retail, and what has worked previously may no longer prove relevant.
If managers and senior staff have access to relevant customer insights, they can respond to the customer’s interactions within a location. Similarly, special offers work best when they’re seasonal or tap into current preferences, and are displayed in the right way. If retail businesses are able to measure relevant behaviour, such as peel off rate, they can share these as actionable insights with the relevant store or centre. To truly add value to the customer journey and secure loyalty, retailers and shopping destinations need to innovate and validate their loyalty techniques. They should be looking at their analytics to determine whether these methods add value, and to adapt efforts in response to consumer reaction.
Are you measuring how the in-store or in-centre experience impacts customer loyalty? Trackometrix Customer metrix solution can bring granular detail to your shopper behaviour and loyalty analysis. Contact us at firstname.lastname@example.org or visit www.trackometrix.com to find out how Real time retail analytics using existing CCTV IP Camera Infrastructure can help you understand your customers as individuals and improve location performance.