According to a recent industry report, over 25 percent of U.S. retailers planned on using data analytics by the beginning of 2017to help with improving their buying decisions.Within this quickly evolving and increasingly competitive sector, retailer’s ability to convert in-store traffic into actual consumers is becoming more important with each day.
Understanding the relevant metrics, recent tech innovations and how to use those to improve customer engagement is now absolutely paramount for any retailers interested in sustaining long-term profitability.
Pay Attention to Store Traffic Conversion Metrics
Some of the key factors for retailers to consider when evaluating in-store traffic include footfall metrics, heat maps, zone interdependence, loyalty metrics and attribution. Monitoring the traffic patterns of visitors inside the store can provide critical insight on peak periods and specific activity trends. This can also be used to assess the impact of variables like promo events, holidays or weather conditions. Collecting footfall data can also provide valuable information about the best time to launch daily marketing campaigns designed to bring more customers into the store.
To many retailers’ surprised, the results gathered from analyzing metrics like finding the longest dwell time often clashes with the model of conventional wisdom they’ve been adhering to for so long. Using heat maps can help retailers identify hotspots and bottlenecks in the layout of their store. Investing in heat maps to identify the most trafficked areas can help retailers focus on reviving the sections getting lower amounts of traffic. Heat maps can also provide retailers insight on the impact that digital signage, marketing campaigns and layout changes can have on customer engagement.
Analyzing zone interdependence can help retailers discover how the positioning of their location alongside other storefronts could potentially affect the amount of traffic coming in the door. Identifying repeat shoppers’ visitation patterns and loyalty patterns can provide retailers with insight about how to enhance future experiences for new and repeat customers. Analyzing visit patterns and path analytics data can help retailers discover the optimal placement for advertisements inside the store.
Investing in heat maps to identify the most trafficked areas can help retailers focus on reviving the sections getting lower amounts of traffic.
Make the Most of Technology
Retailers can use a number of tech solutions for improving how their existing operation and design affects consumers. There are a number of tools used to identify patterns for optimal product placement, traffic flow or positioning staff in the store. A number of innovative tools for assessing dwell time can be used for improving engagement rates as well. These tools can also monitor penetration rates used for tracking which type of storefront advertising is most effective.
Retailers are also using tech solutions for gathering insight from repeat visits and assessing the efficacy of out-of-store marketing activities. Conventional retail sensor suites are comprised of smart devices and sensors that deliver demographic data to the cloud platform and reporting tool used by the retailer. These sensors can instantly collected pertinent data such as the customers gender, age, ethnicity, time of arrival and mood. One of the most popular location-based tech alternatives to the traditional sensors are low-energy Bluetooth beacons.
Improve the Customer Experience
Retailers can install passive beacons that connect to customers’ mobile devices, and based on their loyalty profile and location information, instantly display ads that are most appropriate for the individual or group. By utilizing equipment that instantly captures demographic data and critical metrics like repeat visits, penetration rates, dwell time and traffic patterns, retailers can continuously find new innovative and effective ways to improve customer engagement. The more personalized the content can be for individual consumers, the more likely their visit will convert into tangible sales.
Utilizing location-based analytics powered by innovative tech applications can help retailers improve how appealing their storefront is to consumers with each subsequent visit.