Today’s retailers operate in global economy that affords little room for error. Retailers must combat harsh challenges that include consolidation within the industry, price competition, and increasingly low profit margins. As such, it is mission-critical for forward-thinking retail organizations to adopt technologies that help capture and analyze store activity patterns to increase conversion rates, improve operational efficiency and maximize customer satisfaction and loyalty.
Traditionally, retailers gained insight on customer shopping behaviors through loyalty cards and overall trends in POS transactions even tracking inventory. Although this information did provide insight about limited shopper demographics (cards) and buying habits, it did not provide much insight into the customer’s in-store behavior.
Understanding where customers spend most of their time in the store, what time of day they shop, how long they wait in lines and where they dwell (aisles within the store, promotion displays, service counters, etc.) can increase a retailer’s success. Leveraging a video business intelligence solution helps retailers dramatically reduce their reliance on softer types of data, replacing it with real-world information. Using this data appropriately will help increase sales, improve the customer experience, and add to the benefits of shopping with you; people find what they want there.
Store Performance Management
Leveraging a business intelligence platform can help retailers make informed decisions with accurate people counts. In combination with POS data, in-store department managers, store managers, regional managers, and corporate management can use reliable metrics to benchmark store performance and identify trends early enough to capitalize on them. Retail organizations can also use shopper conversion rates to help compensate and incentivize their sales staff, hence cultivating a customer-centric culture.
Without sufficient staff, retailers face dissatisfied customers and lost sales. At the same time, overstaffing increases operational costs. By capturing the full range of shopper traffic monitoring and customer behavior patterns, retailers can make better operational decisions for sales, marketing, staffing and scheduling. These robust applications can include analytics that analyze traffic flows and shopper movement, measure and predict queue lengths and wait times, monitor zone activity, and provide real-time reporting to ultimately help optimize workforce.
Improve Marketing and Merchandising Effectiveness
Retailers can use video business intelligence to measure the success rate of marketing and advertising promotions. You can use these insights to improve store layout, product placement and promotional displays with actual customer behavior; put the merchandise where the customers are and improve the bottom-line.
Designing Optimal Store Layouts
With a comprehensive data set around shopper traffic, directional analysis, in-store movement patterns, hot spots and dwell times, retailers are able to improve store layout and overall design. If a certain department is rarely visited, the retailers can modify the store layout in order to help drive shoppers to the area where they would not have otherwise visited. Retailers can also alter in-store orientation systems in order to make it easier for shoppers to find the department or the products they are looking for.
For piloting new promotions, store designs or additional product categories, retailers are utilizing video business intelligence data. By reviewing people count, in-store traffic patterns and dwell times around specific areas and products, retailers can take this knowledge and modify their promotion, design or product placement accordingly.