Understand your Customers’ In-Store Shopping Habits
At this point, all retailers should see the value in providing consumers with personalized shopping experiences. And in this world of omnichannel retail, that experience should be blended between online and offline channels. Unfortunately, it has been difficult to provide this experience in offline channels, specifically in-store, due to difficulty in understanding consumer behavior. However, due largely to the smartphone, collecting consumer behavior data in-store is now pretty easy (If you want to know more about the technology, read this article in CIO).
Collecting and analyzing in-store consumer behavior data can give retailers the opportunity to differentiate themselves against their competition. However, in order to succeed in finding the appropriate consumer insights, all retailers must make sure they collect the right data.
This article, published by Independent Retailer, gives us four key metrics all brick and mortar retailers should pay attention to when considering in-store data collection:
Foot Traffic and Shopper Flow
Do your customers frequent the interior rows of your store? Do they group around a certain point of interest? Data insights illuminate where customers spend the most time in a store, allowing owners and managers to take action. Let’s say, for example, that a store’s more popular and profitable items are located on the right, but data indicates customers typically turn left immediately after entering. With this insight, managers can reconfigure the floor setup to direct more traffic to the left side of the store.
How much time customers spend in-store, or at a certain display indicates their level of attention or interest in a certain item. If customers spend several minutes in one area of the store, but sales for those items located in the section remain flat, managers may consider rotating in different products.
Stocking in-demand, relevant items is key to increasing sales. And to do that, you need to know what customers value most. Sensors can record what types of products customers are looking at based on size, color, product category and other factors. And, managers can use these insights to order specific products, say medium-sized blue pants, based on what customers are most likely to purchase. Taking this a step further, retailers can send personalized emails to customers informing them when these products are in-stock.
Reaction & Sentiment
Cameras can do more than track customer movement. Through facial recognition programs, they can actually capture customers’ reactions to certain displays. If sales are high for a display that incites a positive reaction, managers can determine what aspects of the display could translate to others throughout the store to move customers along the purchase path.
When done correctly, finding insights in this data can create a sustainable competitive advantage. According to this article by cloudtags, collecting in-store data and acting on insights have the following benefits:
- Customers receive exceptional experiences tailored to their habits
- Sales staff build meaningful relationships and receive attribution for their work
- Retailers identify customers and learn the best ways to re-engage them to increase sales
The next step is to find the right team to implement these new technologies and find the insights in the data.