#in-store data

[retailtouchpoints]

Top Three Tips For Retailers This Holiday Season

By Trevor Sumner, PERCH

With the holidays just around the corner, retailers face a considerable number of challenges as they aim to catch the consumer’s eye. As shoppers enter stores in droves attempting to find the perfect gift, retailers need to be prepared for the influx of customers while also delivering a seamless and enjoyable shopping experience. Unsurprisingly, holiday demand continues to surge, as in-store sales are forecasted to rise 4.4% year-on-year, while e-Commerce sales are predicted to grow by 16.6%, according to eMarketer. By following the three tips below, retailers can ensure they’re equipped to manage the impending holiday season.

1. Create Enjoyable, Shareable Experiences

Shopping and products have always been a part of self-identity. We live in a sharing economy, where Instagram and Facebook consumers want their shopping experience to be shareable. Thus distinctive displays are imperative for consumers this season. There’s been a rise in popularity of experiential pop-up stores and interactive displays catering to today’s social-media savvy shoppers, such as Nike and Foot Locker’s House of Hoops augmented reality game "The Hunt," offering exclusive content to users and experiences tied to product drops.

Another example is Sephora’s interactive beauty event, SEPHORiA, a two-day event combining interactive physical and digital experiences, where consumers could customize their eye shadow palettes or take home a personalized lipstick color from their favorite brands. Something that’s limited time and truly special will get special attention from consumers.

Kate Spade New York has also capitalized on in-store offerings to drive potential customers inside, providing personal in-store services that consumers can schedule online such as their styling sessions and handbag customization with their “Make it Mine” collection.  By differentiating on service, they help customers overcome the anxiety of holiday shopping.

For many, holiday shopping can be overwhelming and even a chore.  Delivering consumers personalized, enjoyable and shareable moments allows retailers to get customers in the door and have them experience merchandise in a unique and compelling way that becomes viral.

2. Leverage In-Store Data

Your consumer data holds the potential to create an effective holiday shopping strategy. Use it. This data can help reveal patterns and insights essential for targeting consumers and delivering unified experiences across digital and physical channels. As you build relationships with your consumers, incorporate the data you’ve collected year-round to capture their interest.

Investing in predictive analytics can effectively target consumers where they shop, and make sure you’re providing what shoppers are looking for. A great example of this are the increasingly popular Amazon Go stores, where shoppers can pick up their desired products and simply leave the store, as Amazon charges them for their products via their app. Consumers are effectively trading the convenience of no checkout lines for their data, allowing Amazon to track purchases and keep the data for future use, then recommend products to them later. And consumers are welcoming the trade with 44% of Amazon Go shoppers returning to the store.  

As the holidays draw near, anticipating shopper behavior is crucial for a seamless shopping experience, and data holds the key to unlocking consumer preferences and personalizing experiences.

3. Manage Your Inventory Network

Just as critical as crafting these shared experiences and leveraging your in-store data is ensuring you’re able to meet the sheer demand this holiday season will bring. For the first time ever, U.S. Christmas sales are expected to exceed $1 trillion, which eMarketer reports is the strongest growth retail’s seen since 2011. Misjudging this demand can quickly lead to a sharp decline in sales, as Walmart experienced when they failed to keep basic items in stock for the holidays in their attempt to manage highly in-demand items like TVs and toys.

In order for retailers to optimize their supply chain and manage their inventory during this peak season, consider implementing buy online/pick up in-store (BOPIS) for consumers, and even buy online/ship-to-store (BOSS). Not only will these strategies allow retailers to offer a wide selection of inventory without the necessity of storing it on-site, but it also invites shoppers to make last-minute purchases (“attachment sales”) during their pickup. Macy’s is allowing consumers to purchase online and pick up in-store this holiday season, and Zara is reportedly seeing success with this trend already and states that one-third of its online orders are picked up in-store.

Navigating the holiday season can be tricky, yet offering consumers a shareable experience combined with ample stock of personalized products can ensure that retailers are prepared for one of the busiest times of the year.

Trevor Sumner is the CEO of PERCH, the leader in interactive Physical + Digital retail displays that detect when customers touch or pick up products and then respond with digital experiences, driving 30%-80% sales lift. Retailers and brands like Neiman Marcus, Kate Spade, Sephora and Fossil use PERCH’s 3D sensing technology, campaign management tools and device management to create in-store experiences that delight their customers. Sumner has been an investor, advisor and operator for cutting-edge technology companies for 15+ years and was previously President, CTO, and Cofounder of LocalVox. He also contributes to business/technology publications like Inc., Forbes, TechCrunch and Mashable.

[afiorletta]

How To Determine What To Measure In Your Store

By Martin Birac, Monolith 

Big Data and omnichannel are among the major trends in retail. While most retailers are starting to understand what they can measure, the question that too often goes unanswered is: Why measure? Falling into the trap of measuring too much and gathering piles of data that won’t be used is easy. To avoid this, it’s essential to clearly understand the “why” before you start measuring. The first question any retailer needs to answer is what the goals of the store are. Once you’ve determined the goals, you can set the metrics that are necessary to measure success. To show you how this works, we’ll do a deep dive into one of the metrics that’s become more popular and easier to measure due to new technologies: Dwell time.

  Engagement And Entertainment 

Since online and omnichannel are becoming more important for retailers, the store has become more of a showroom to strengthen the brand and image. As one recent study found, 68% of people have “intentionally browsed products at a store, but bought them online.” If you’ve determined that engagement and strengthening your brand is an important goal of your store, understanding dwell time is crucial. The longer a shopper stays in the store, the longer she’s exposed to the brand and brand story. Or maybe one of the goals of your store is to have a high “entertainment value,” as we see more and more stores adding elements, such as a café or beauty salon. If you want to determine whether people are indeed entertained, knowing how long they stay in the store is a key metric. Revenue will no longer work as a means to measure these engagement and entertainment levels. 

Store Design To Slow Shoppers Down 

Moreover, dwell time shows you how good your store is at slowing shoppers down and thus increasing potential time to buy, a goal for any store. To give an example, it’s important to create “safe havens.” What we’ve seen is that dwell time is lower at spots where the shopper stands with his back to the main shopping path. It’s because it doesn’t feel safe and our brain is wired to be cautious for attacks from the back. Placing mirrors strategically throughout the store can avoid this. On the other hand, more quiet spots cornered by shelves from all sides, give a feeling of safety and have increase dwell time at that spot.

  Dwell Time And Catchment Area 

Another reason why increasing dwell time can be of importance is that it increases a store’s catchment area. Again, depending on the profile and goals of your specific store this might be of importance. Think about IKEA, for instance. The retailer’s catchment area is very large and shoppers accept a longer drive, because they know they will spend an hour or more at the store. 

Retail Execution Lastly, dwell time can tell you something about retail execution. Shoppers can leave faster if they cannot find what they’re looking for and staff is not attentive. On the other hand, at the cash registers and fitting rooms, you might want to aim for low dwell time, as no one likes long queues or slow cashiers. So you need to take this into account and possibly deduct it from the total, if you’re aiming for high dwell time and want to avoid a skewed picture. Moreover, what we found at several clients was that female bounce rate was relatively high because it wasn’t clear whether there was a women’s section. If almost half of your customers leave after only having seen a small part of the store, dwell time will be low. 

Of course, in this case to find the underlying reason behind the low dwell time you’d need additional data, such as demographic data or coverage of the store. So, now you understand what you can learn from dwell time and why you probably want to measure it. The bigger takeaway should, however, be that before measuring anything it needs to be clear what your goals are and how and which metrics will help you measure success. Heavily invested in a campaign to attract more males to your once female-only cosmetics store? Then it’s crucial to assemble demographic data of your visitors. Is your big goal for 2015 to improve your flagship stores as marketing and branding tools? Then dwell time is one of your most important metrics. 

Avoid assembling useless data and start measuring what you really need to know.  

Martin Birac is CEO of Monolith, an in-store analytics platform working with clients such as Timberland and Scotch & Soda. Birac is a serial entrepreneur who founded his first company at the age of 18 and he now has more than 10 years of experience in the world of online advertising and analytics. Trained as a filmmaker, he's still an avid photographer when he's not working.