Behavior Analytics: Data-Driven InStore Growth
The Physical Store is not dead. Shopping Malls are not dead. But retail is changing, fast. And the retailers want seamless online to offline analytics.
And so …
You build an elegant sensor that detects 97% of objects and costs less than a cup of coffee a month, and the retailers are willing to buy 3 units.
You designed a dashing dashboard and responsive mobile app that shows where and when people visit the store, and the retailers have not moved beyond the first pilot store.
You sold/bought a 10 stores solution, and everyone was excited. That was a year ago and nothing seems to move forward.
If this is happening to your company, you are not alone.
The bad news, retail is in the midst of a transformation and they are overwhelmed with new projects. The good news, people tracking (location analytics) has a proven ROI.
This is the challenge.
If the retailer does not understand why Sales Conversion will be different if we use Visitors, Arrivals, or Number of Devices as the demand factor, than you are in trouble.
If the retailer tracks engagement in front of a display, but is unaware that the Planogram was changed due to the task management software, than you are in trouble.
If the retailer is thrilled to find an uptick in footfall traffic,but then you find out that the marketing campaign resulted in less sales, than you are in Trouble.
While your objective is to sell technology, your customers need help in understanding the metrics, creating process and policies, and designing accountability frameworks.
This is what I learned in the last 5 years. (This is important stuff)
No one cares about your technology.
Retailers care about outcomes.
People care about their job.
You cannot roll out a people tracking solution without a proven business case.
That's it. That's the secret.
Metrics are frameworks of behaviors. It also means understanding the strategies and tactics that solve a problem for the retailer or increase sales. This is the hard part since it requires learning how to think in terms of the psychology of buying, and how to design the metrics in context.
The good news you don't need to go through a lot of trial and error. I already did this for you. I developed a step-by-step process to guide you through the complexities of retail strategy, location analytics, and InStore conversions. And I created the Behavior Analytics Academy to serve as the learning center to empowering the physical store.
People Tracking is a derivative of the Internet of Things (IoT)
People Counting is detection technology. We can detect, and thus "count" how many people are in a location. Tracking refers to "People in Motion". Most important, it includes components of both location and time.
The technologies of people tracking are evolving fast. The solutions include Vision Analytics, 2D/3D Video, Thermal, Time of Flight, Structured Light, WiFi, Beacons, RFID, GPS, 3D Spatial and others.Tracking technologies are a function of smart devices and smart sensors.
Regardless of solution providers, the technologies differ by their nature. We only care about the quality, consistency, and value of the data.
People Tracking capture, measure, and predict activities. People do many things in the physical store. They visit a department, browse products, and wait for checkout. The common denominator is where the activity takes place, and how long it lasts. The output from People Tracking is the "When" and "Where" of the activity.
Data integration with other systems provides another level of clarity. We can combine data from systems such as Point-of-Sales and Workforce Management. This will give us more context on the "Where" and "When" of the activity.
Behavior Analytics creates a holistic picture. The framework aims to capture the "Why". We pin the activity to corporate policies, the local store, and the social situations.
Behavior Analytics for the Physical Store
Behavior Analytics grew from studies in demand, engagement, queues, scheduling,and sales conversion. The current frameworks include: Location Analytics, People Counting, Scheduling, Queues, and InStore Analytics.
Growth hacking is an online technique for exponential growth. By learning each step in the InStore Funnel, we adapt the data-drive methods to the complexity of the physical store.
This is how we learn to think about Purchase Points.
This is how we grow sales and Profits.
This is where the fun begins...
Ronny Max is the author of 'Behavior Analytics in Retail' (2013), and founder of Silicon Waves, a consultancy specializing in People Tracking Technology. We worked with 100 plus retailers and technology companies to design store
productivity models, educate through workshops and corporate sessions, and
provide research, analysis and advisory expertise on market strategies.
Topics of expertise include Location Analytics, People Counting, WiFi Tracking, Queue Management, and Vision Tracking
Ronny was very helpful in guiding us through the learnings of how to
leverage traffic counting metrics into our retail business. She is very
knowledgable with both the technologies and business analytics used to
leverage customer traffic counting systems to assist in labor
scheduling, product placement and customer behavior. these customer
insights resulted in business changes that delivered significant ROI and
improved oveall customer service.
Butch Jagoda, V.P. Information Technology at Helzberg Diamonds
I have worked with Ronny for many years. She is deeply knowledgeable
about the Retail Analytics industry. Her insights have been invaluable.
She is easy to work with – highly responsive and highly pro-active. I
strongly recommend Ronny.
Christopher Ainsley, CEO ShopperTrak
I have worked with Ronny in the past both as a contractor to my company
and also as a collaborative and trusted advisor. Her insights into the
market of customer behavior and associated analytics for physical
retailers are as deep and thoughtful as can be found in the market.
Steve Hornyak, CEO, Americas at Trax Image Recognition