Realtime retail analytics till date has been a huge void for retailers, they have at the highest level just been looking at the accuracy, timelines and quality of data that they have, which typically resides in silos, and they don’t necessarily know what’s happeningat the store level. Also most retailers have told us that the cost of ownership is a huge problem it is difficult to upgrade older technology this is not meeting the requirements of the problems of today. Owing to this retailers have migrated to social networks not only to connect with their customers to boost sales.
We also witnessed continued efforts of the Millennial shopping habit of show rooming, and this notion of the perpetual shopping clock. There are no such things as store hours anymore; retailers that can figure out how to keep a perpetual clock will delight their customers. This has led to bigger issue where the online experience of customer delight has to translate to the brick and mortar stores this now had turned into a hurdle as retailers are quite clueless about the customer walking into store. They don’t know their age, gender and how many times they come to the store, time and date of visit etc etc.
Retailers today have to rely on passive analytics like wifi, apps, beacons etc but those don’t capture the behavior and intent of customers in store.
The world is changing and retailers need to rethink their strategy as well. This is the age of the millennials, this applies to both consumers and employees both consume information differently than the digital nomads its time retailers gear up to understanding their consumers ready and give the work force the adequate tools to perform their duties better.
#1: Transformation of Retail
Retail going through a pivotal change this year. Realtime Analytics for brick and mortar stores is evolving in a significant way. Retailers will be able to improve in-store experience by understanding the consumer in a non-intrusive manner where the retailer will be able to use his existing CCTV IP camera infrastructure to tag every consumer coming into the store, auto assign an age bracket and gender. This will empowers retailers to manage the depth and width of the product offering, better their loyalty and CRM programs, better manage their supply chain and replenishment but over and above all understand hidden patterns using market basket analysis and predict return and purchase. There are someimportant aspects that will lead to the transformation of retail. We will talk about two points of high importance in this post Empowered Customers: With the advancement of technology and instantaneous access to information, the customer has benefited in many ways. Now its time the retailers got onto the same level of understanding of the consumer as the consumer has of the band and its competition. Winning retailers will be able to keep up with the information available to their customers. It will become ever important for retailers to use this information to carry the right product in the right location at the right price. Channel Pain Point Remediation: By understanding Synergistic Channel and Empowered Customer concepts, retailers can enhance these by understanding channel pain points. understanding the customer pain point of the act of purchasing in any channel means providing a solution to ease that pain and reduce abandonment and upsell and cross to the customer in real time..
#2: In-Store Analytics
Retailers will soon figuring out that there is a way to use existing CCTV IP camera infrastructure to measure shopping behavior in the physical store similar to the online world using Trackometrix. Measuring components inside like customer metrics, Service time & abandonment,Dwell Analysis, isle effectiveness and outside the four walls, like pass-by traffic and capture rate, are key to understanding the share of wallet. This, coupled with understanding the full path to purchase, can unleash hidden opportunities for retailers. The path-to-purchase measures include exposure and engagement rate of departments, areas, and fixtures. Additionally, factual granular data show sales and conversion metrics for segments of the store, visual merchandising concepts, and marketing strategies. Adding in-store analytics, foundational analytics like traffic and conversion alone can show substantial sales improvements of 8-10%
An an obvious trend for many retailers to continue with ongoing efforts to merge the data collection points between the physical and online worlds.We will focus here on the in-store shopping environment, as its it’s the source of the largest information gap. Opt-in features and in-store analytics allow for retailers to complete a once-unseen picture of customer shopping behaviors. Understanding customer metrics, length of store visits, and purchasing that occurs while the customer is in your store can help you better meet the needs of the customer. With mobile device detection, information can be collected in an anonymous way but still allow for the retailer to make marketing and product decisions, which can enrich the personal shopping experience. what we have learnt with multiple conversations with retailers is that most customers don’t want to be tracked by any retailers, but they do want to be understood by their favorite retailers. Customers understand that giving more information to the retailer about how they shop translates into better shopping experiences.
The amount of product or floor space isn’t the real issue here—instead, it’s the lack of differentiation among products retailers that can differentiate themselves through product, service, or technology. Making sure the product offering (depth and width of offering) based on customer metricsis one that stands out will help build the share of wallet and brand loyalty.
if you have not heard of gamification its time you change your group and hang around more young people. Generation y is growing up with technology, innumerable choices in an age of instant gratification. If you can recognize them and connect with them on a personal level you have your loyal consumers of tomorrow sorted. Retailers who figure this out (especially those with Millennials as a target market) will quickly win over their customer base. Using gaming tactics in the retail world can engage customers more quickly, encourage more purchasing, help with product/service feedback. We end the post and leave you with a few thoughts. Make use of your existing infrastructure to understand your consumers better, manage your staff better, effectively deploy your supply change and manage your warehouse more importantly its time to Future Proof your Organisation.