Why Is ‘in-store’ Analytics Key to Unlocking the Retail Industry’s Potential
The rising pressure from online players is forcing brick and mortar companies to rope in the most innovative technologies into business and invest in various in store marketing strategies and campaigns to attract customers to walk into their stores. However, unless the effectiveness of these techniques is measured, the effort goes in vain. But the […]READ MORE >>
The rising pressure from online players is forcing brick and mortar companies to rope in the most innovative technologies into business and invest in various in store marketing strategies and campaigns to attract customers to walk into their stores. However, unless the effectiveness of these techniques is measured, the effort goes in vain. But the big question for retailers is how can they measure the extent to which their strategies are successful? The answer is through in store analytics. Companies in the retail industry can leverage in store analytics to measure and analyze in real-time the performance of campaigns and other marketing activities. This helps marketers to improve their decision-making capabilities and optimize performance. Though a business’s ability to benefit from such analytics depends heavily on the environment where it is deployed, the possibilities of in store analytics are countless in any environment from shopping malls to individual stores. Also, the benefits of in store analytics are not immediately visible; they can only be reaped over time. But, the results attained are totally worth the wait. Let us explore some of the key benefits that retail industry players can gain by employing in store analytics into practice:
Real-time measurement of store performance
It is essential for retailers to have a clear understanding of the customer’s behavior before undertaking marketing and promotional campaigns. In store analytics provides players in the retail industry with the tools that would help them gain real-time actionable insight into the customer behavior. This would help them to measure the effectiveness of previous strategies and structurally plan new campaigns that influence the buyers. For example, retailers can measure how a change in window displays affect the capture rate from passersby to store visitors.
Optimize layouts and categories
In the store, analytics gives brick and mortar companies deep insights on the buyer behavior and customer shopping patterns. These insights open up countless possibilities for companies in the retail industry for optimizing in store operations, such as store locations and store layout.
Enhance shopping experience
In the online scenario, the use of A/B testing to better understand the customers’ buying behavior is one of the best practices. When it comes to brick and mortar model, businesses can devise in store analytics to learn from their previous actions and perfect their operations over time to provide an optimal customer experience.
Increase marketing ROI
An investment becomes worthwhile only if the company can maximize their return on investment (ROI). An efficient in store analysis allows marketers to choose the campaigns and strategies that would yield the maximum returns. For example, by analyzing the sales funnel, marketers can focus on the best opportunities that bring the highest marketing ROI.
Accurate performance measurement
As mentioned earlier, in store analytics gives retailers the idea of which strategies are best suited for their business. With this, they can further benchmark and set the standards for performance. Benchmarking helps companies to measure the positive and negative deviations and accurately state the reasons for the same.