Customers don’t analyze their behaviors at the point of sale, but every retailer should, and they should learn from it every step of the way. It is imperative that clients are safe, comfortable and have privacy when moving around. Rethinking their movement and flow will enhance all the qualities of an in-store experience without intruding on anyone’s privacy.
The questions every retailer should ask themselves are: How long do customers stay in a certain location? What do they buy in each department? What are they doing in store? Do they interact with staff? How do they react and interact with the products? This is where full-travel people tracking technology comes in.
Using AI-powered 3D sensors and people flow technology, you can individually and anonymously record the exact geolocation of all people in a physical environment every quarter of a second with sub-foot accuracy. It sounds deep, and it is. But all of this can be accomplished discreetly and for everyone’s benefit without any buyer identification, biometrics, and storing any staff or customer image data.
The data collected is translated into usage, engagement, and conversion rates for each element of a retail establishment. Detailed customer behavioral segmentation capabilities can enable differentiation based on store entrance, whether customers passed/purchased/engaged with specific items, whether/where/how long they interacted with associates and more. Additionally, a DVR-like journey playback tool allows the retailer to play back all customer journeys or specific journeys at speeds from 1 to 120X.
By analyzing these behaviors, the retailer can determine how their stores can be built and designed more efficiently, how visual displays can be set up and configured to optimize engagement, and how they can ensure that all store operations run smoothly. run smoothly.
For example, in a store we have experience with, the immersive and interactive shopping experience of a department was identified as the element worth considering.
The experience had the highest engagement rate of any element of the store, with 50% of all customers who entered its footprint demonstrating engagement with the product. No other element considered had a commitment rate above 40%. Shoppers in the experiment were 1.5 times more likely to buy than average and had cross-sectional buying behavior that was highly correlated with other high-value merchandise areas.
Analysis of the store entrance a customer originated from and the direction in which they approached the experiential element identified that customers approaching from a “front-facing” orientation were 2 times more likely to purchase the item first in their journey, and had an average purchase time over a minute longer (Fig. 1). Using a tracking system that analyzes the entire purchase visit, the customer can segment by entry to determine whether the performance driver is buyer segment (entrance) or orientation (direction of approach). Coping turned out to be more important.
The ability to track across the entire site was also key to providing guidance for advantageous positioning and store selection for a wider rollout of the experience (Fig 2). Correlations between purchases, including shelves located throughout the store (sometimes 50 meters away), revealed which shopping elements were most likely to benefit from a location close to the experience.
The result can be a clear story told by customer behavior data of an experience that has benefited both the customer and the retailer. By understanding the highest potential of a space, a retailer can act on it and redesign the space accordingly.
The bottom line is that every retailer should strive to understand customer behaviors in order to improve operations. Through the use of people tracking solutions, retailers can seek efficiencies and work to continually improve the overall customer experience. In an ever-changing market, evaluation and positive action are always essential.
Nick Delyani is director of Retail North America for xovis. He is a multi-faceted executive with 15 years of marketing, sales and creative experience. Delyani’s experience spans consumer technology, apparel and footwear, with brands including Brookstone, New Balance and Sphero. He has a proven track record of driving revenue through business development, branding and customer journey experiences and has successfully developed go-to-market strategy and product marketing with global retailers that have generated millions of dollars in revenue.