Behavior Analytics

Conversion Optimization (CRO) for Physical Locations



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Behavior Analytics is about optimizing profits based on activities in the physical store. We don’t like the term “Conversion Optimization”. If you cut prices in half, your sales conversion will increase, but your profits will sink. Our focus is adapting costs to generate revenue

We Optimize Stores for Profits - and Growth!

Top 10 Insights from Behavior Analytics


The Physical Store is Not Dead.

If you think online retail is the only way forward, this is not the place for you. We believe the physical store will continue to play a critical role in retail.

But retail is changing fast.

And so should the physical store (but not the way you think!).

Our focus is what happens during the shopping visit. There is much knowledge, data, and solutions to learn about customers, products, and pricing. The raw data comes from transactions.

The recent shift powers the supply chain. We have better logistics, assortments, and item tagging. In this case, the data unit is a SKU.

Online, we mastered the shopping funnel. And we know how to hook customers to products! They are all supported by the techniques of Growth Hacking.

We developed the disciplines of Search Engine Optimization (SEO), Pay for Click (PPC), and Conversion Rate Optimization (CRO).

The last frontier of data is the Physical Store.


The Black Box of Store Visits (And the Rise of People Tracking Technologies)


What is the data unit for store visits? The answer is what people “do” in the store. Our raw data is Activities!

Tracking Technologies 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.

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. People Tracking technologies are a function of smart devices and smart sensors.

Here are some questions to ask:

  • How do we quantify activities? (Hint: We capture Location, Time, and Purchase Points)
  • Which solutions are a better fit? (Hint: WiFi Tracking and BLE Beacons are competitive solutions. But Video/Vision/Thermal technologies are complementary to device-based tracking)
  • Which solution drives the behavior I want to change? (Hint: differentiate between technology, product, and analytics)

Regardless of retailer, technology, and provider, winning comes from Optimization.


What Can We Learn from InStore Conversion Rate Optimization (CRO)?


Here are the Top 10 Insights from InStore CRO:

  • Demand Analytics: Quantify the footfall traffic entering and exiting the store, per period of time – for more accurate forecast of sales opportunities
  • Mall Analytics: Qualify mall traffic by the mall traffic and capture rate – for better merchandising and marketing
  • Store Segments: Compare stores by traffic volume, sales conversion, demographics, and outliers – for improved store operations
  • Buying Groups: Capture buying groups behaviors – for the analytics of customer segments and customer service
  • Local Demand: Measure the path of entry, exit, and occupancy of zones – for learning the impact of crowds, fields of view, and local sales opportunities.
  • Customer Engagement: Frame customer engagement by location and time – for products and sales trends analysis
  • Calls to Action Conversions: Define and narrow the Call to Action – for a better design of the InStore Funnel.
  • Friction Points: Prevent friction of abandons, bottlenecks, and checkouts – for a enhancing the customer shopping experience
  • Customer Service: Evaluate service intensity and staff productivity – for empowering your store associates
  • Purchase Points: Analyze decision points in context to behaviors – for activity based costing, basket, and customer analytics.

And (Don’t Skip This!) there are always surprises with data!


Behavior Analytics = CRO + Behavior Science


Once you have the solution in place, there is data. What you do with that data is the difference between laggards and winners. The laggards do reporting. The winners test, change, and test again. If you want to win, you, and your team, must learn how to work with data.

Optimization is where we bring in the power of Behavior Science.

Here are some case studies from the field:

  • How do you sell cakes? In a supermarket, we found out that the best way to increase cake sales is to attract the kids. Most cakes are sold for events, such as dinners and parties. But kids in the store are a sure way to encourage healthy-eating parents to buy sugar-intensive cakes.
  • Did you know that folding jeans costs you $50/hour? Activity Based Costing is a well-known but under used method in retail. A day of monitoring activities in a jeans display with unearthed the true cost of folding. On a single day, the same pair of jeans was tucked 136 times!
  • What is more important – the number of people waiting in front or the speed of the line? Think Disney World. Think Express Lanes. Does your Queue Management concur? Do Last Touch (Checkout) and First Touch (Starbucks) play by the same rules?
  • Do Promotions work? Will it surprise you if we tell you that test after test shows that it depends on the location of the products in the store? Whether we tested the impact of newspaper coupons, Mother’s Day sales, or digital fitting rooms, location matters!
  • Why should we care about path analysis? If you designed a new concept and customers don’t see it, you should care about path. If customers don’t enter the center store, you should care about the field of view. And if customers start at the Clearance Rack, you suffering from a lack of Nudge.

Optimization equals Activities plus Change plus Behavior Analytics.


PEACE Method for Profit


In addition to Data Quality Analysis*, our research follows the PEACE Method for Profit™.


  • People: Learn your audience based on consumer research and behavior science
  • Engage: Capture how people interact with your products, service and layout
  • Abandon: Identify the points of friction inside the store and in the path to purchase
  • Convert: Define the Calls to Action based on retailing goals and the Customer’s Journey
  • External: Analyze winning and laggard stores and policies, in context to the retail market

* We are technology and provider agnostic. Our work is based on Good Enough Accuracy


Behavior Analytics is about Profits!


Our Philosophy is - Costs Generate Revenue

InStore Activities are the Sandbox

Data is the Tool

This is Where the Fun Begins….