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12 Essential KPIs All Brick-and-Mortar Retailers can leverage using Traffic Counters – Part 4

Posted on June 13, 2019

KPIs part 4

This is the 4th and final part of our series that covers the most relevant KPIs retailers can monitor through Prodco’s Traffic Counting Solutions.

Last time, we talked about:

  • New Visits
  • Repeated Visits
  • Cross Store Visits

Make sure to read part 1, part 2 and part 3 first.

Like many KPIs we are covering, it is important to be aware that this data requires your equipment to have integrated WiFi. Fortunately, Prodco’s modern Stereoscopic 3D cameras include WiFi technology as a basic feature.

10. Visit Frequency

Similarly to the KPIs covered in our previous article, this metric is primarily used to measure brand loyalty. But while the previous KPIs only distinguish Repeated Visits from New Visits, this provides more information by highlighting how often a customer returns to your store.

loyalty card

The common knowledge in the retail industry has always been to find ways to encourage customers to come back to a store, instead of investing massively in customer acquisition.

As such, make your loyalty program relevant, unique and easy to join by offering them the possibility to subscribe through mobile apps, kiosks or iPads available in the store. Take advantage of the Visit Frequency KPI to assess your marketing initiatives.

If your goal is to improve the Visit Frequency, make sure to talk to your customers directly, and give them compelling reasons to visit. It is always important to ensure good service levels, to increase customer engagement and to keep offerings new and exciting by providing variety.

11. Visit Recency

Visit Recency is used to measure the return visit cycle of your store. It is the average number of weeks between visits for your customer base. In other words, how often they visit.

visti frequency KPI

This KPI is another tool to better understand the journey of your customers, their needs as well as their behavior.

Understanding your customer’s return visit cycle can help you schedule your sales associate more efficiently and provide the correct merchandising mixture to maximize your opportunity to increase sales.

12. Shopper Retention

With Prodco’s analytics platform, you will have access to a metric called Shopper Retention. Although similar to Visit Frequency, it goes much more in depth as it provides insights on a longer period of time.

This is a powerful way to differentiate frequent visitors from occasional visitors, and to understand what customer profile is the most valuable to your business. Are more-engaged visitors converting better? This data can be used effectively to turn visitors into valuable and long-term customers and to evaluate the performance of your marketing campaigns.

credit card customer

Acquiring new customers is, of course, relevant and can greatly impact the growth of your business. But as mentioned previously, it’s not the only way to increase your profits.

For many retailers, it will make more sense to focus their efforts on customer retention, as it’s a much more cost-effective strategy. Not only is retention cheaper than acquisition, but it also has a very high ROI.

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Prodco Analytics delivers a comprehensive analysis platform that highlights where opportunities for improvement exist and helps your stores reach their real performance potential. Our retail performance solution delivers a deeper understanding of shopper behavior with real-time analytics at all levels of the operations and marketing team.

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Mother’s Day 2019 Special Review

Posted on May 28, 2019

Mother's Day 2019

USA Map

US Region

Prodco’s Retail Traffic Index for Mother’s Day 2019 reported a year-over-year decrease of -10.29%.

Despite a general decrease shared by most retailers across the US, the East regions contributed the most to the decline, with a reported year-over-year decrease of -15.81%.
Multiple factors are contributing to this decline. First, even with a very good consumer sentiment for 2019 and a healthy economy, the US-China trade ware had a considerable impact, affecting the US GDP significantly. As a result, it decreases expectation from 3 percent in 2018 to 2.1 percent in 2019.

As per this article, the jobs market is very strong. The unemployment is at a half-century low, the wages are slowly increasing and there is available credit, reflecting a strong economy. However, due to rising costs on imported goods, the pace of consumer spending is slowing down. The growth is subdued and slow, with consumers being wary of borrowing to the limit and businesses being cautious about overextending their capabilities.

Low levels of spending have carried over from Q4 2018 into 2019 and it shows in consumer movement in retail traffic.

Canada Map

Canada Region

Prodco’s Retail Traffic Index for Mother’s Day 2019 reported a year-over-year decrease of -1.80%. Prairies reported a year-over-year decrease of -4.5%, British Columbia was less affected and reported a year-over-year decrease of -0.93%.

Bloomberg Nanos Canadian Confidence Index showed that the Canadian consumer confidence is at its lowest level in almost two years. A decrease in the general household sentiment and rising insecurity regarding job safety are compelling consumers to be more careful and calculated with their spending.

One of the main driving factors for the current slowdown is the weakness in the oil sector. Other factors contributing to this depression are rising interest rates, last year’s sharp drop in global equities, low oil prices, US-China trade tensions, and slow wage gains. The Canadian economy seems to have hit a soft patch.

On May 20th, the Conference Board of Canada confirmed in an article a lower growth projection for 2019. Indeed, the Canadian economy is expected to grow by just 1.4 percent in 2019.

Sources:

US:

Deloitte.com
Nytimes.com
Conference-board.org
Cnbc.com
Seekingalpha.com

CA:

Bloomberg
Newswire.ca
Deloitte.com


If you would like to receive Prodco’s Retail Traffic Index Reports on a weekly basis, please contact us.

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12 Essential KPIs All Brick-and-Mortar Retailers can leverage using Traffic Counters – Part 3

Posted on May 9, 2019

KPIs Part 3

This is the 3rd part of a 4 part series that covers the most relevant KPIs retailers can monitor through Prodco’s Traffic Counting Solutions.

Last time, we talked about:

  • Average Visit Duration
  • Engagement Rate
  • Bounce Rate

If you haven’t read part 1 and part 2, make sure to do so.

Like many KPIs we are covering, it is important to be aware that this data requires your counting solution to have integrated WiFi technology. Fortunately, Prodco’s modern Stereoscopic 3D cameras include WiFi as a basic feature.

Average Visit Duration Icon

7. New Visits

Being able to differentiate new visitors from recurring customers is a compelling feature that can be offered through WiFi-enabled devices.

Let us start first by explaining the technology behind it. How can this be achieved?

Our Wi-Fi-enabled solutions sense the non-personal Wi-Fi pings emitted by smartphones. Using these pings, we measure how customers flow through your store, how long they stay and how often they return.

We then analyze the non-personal data and automatically turn the raw numbers into valuable insights.

To protect the shoppers’ privacy, all data is anonymized and encrypted. We never capture or store any biometric or personal data as per GDPR and international privacy laws.

How to leverage this KPI?

The number of first-time visitors entering the store is a good indication of the performance of your marketing initiatives and displays, and how it may attract potential new customers to your store.

Engagement Icon

8. Repeated Visits

This is the number of visitors who have already visited the store in the past.

For many retailers, regular customers are a fundamental component of their business prosperity and longevity. In some industries, it is often more expensive to acquire new customers than to invest in customer retention.

This survey even suggests that it could cost 5 times more to acquire a new customer, whether online or in the brick-and-mortar world.

A big part of a retailer’s customer retention strategy is to put in place attractive loyalty programs, to engage customers, to have a good mix of products always available, and to ensure a high level of customer service at all time, thus, encouraging customers to come back.

In fact, your loyal customers can play a key role in your acquisition strategy. Indeed, word-of-mouth and case studies are powerful sources of new customers, making customer retention an important aspect to focus on. As mentioned before, the benefit of recurring customers over new customers is that they require fewer resources.

Also, not all stores are created equal and some might be located in highly touristic areas, thus affecting the ratio of New vs Repeated Visits. For that reason, this KPI comes in handy to understand which stores need to be targeted with bespoke marketing campaigns.

Depending on your vision, customer incentives might not always be the appropriate approach to build strong customer loyalty and keep your customers happy. Apple, for instance, has built more than a fan base by creating a cult around the brand, without offering any special incentive.

All in all, this KPI can be used to gain insights into the loyalty of your customers. Are marketing initiatives, loyalty programs, and brand awareness efforts paying off? Do your customers come back to your store?

Bounce Rate Icon

9. Cross Store Visits

Cross Store Visits, or the number of stores a visitor has visited for a selected period.

Like Repeated Visits, Cross Store Visits are very beneficial to assess the loyalty of your customers towards your brand(s). Unlike Repeated Visits which focus on a specific location, CSVs bring to light the whole brand by providing insights on how your customers are interacting in different locations of the retail chain.

This tool can also be a great way to compare your brands within your chain and highlights the capacity of your different brands to retain customers.

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Prodco Analytics delivers a comprehensive analysis platform that highlights where opportunities for improvement exist and helps your stores reach their real performance potential. Our retail performance solution delivers a deeper understanding of shopper behavior with real-time analytics at all levels of the operations and marketing team.

Stay tuned for part 4.

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12 Essential KPIs All Retailers Can Leverage Using Traffic Counters – Part 2

Posted on April 9, 2019

12 KPIs All Retailers Can Leverage Using Traffic Counters

This the 2nd part of a 4 part series that covers the most relevant KPIs retailers can monitor through Prodco’s Traffic Counting Solutions.

Last time, we talked about:

Door Counts: The number of people entering the store
Passer-by Traffic: Direct customer opportunities that pass by the store
Capture rate: The store’s capacity to attract visitors

Make sure to read part 1 first.

Like many KPIs we are covering, it is important to be aware that this data requires your equipment to have integrated WiFi. Fortunately, Prodco’s modern Stereoscopic 3D cameras include WiFi as a basic feature.

Average Visit Duration Icon

4. Average Visit Duration

The Average Visit Duration (AVD) is a KPI that showcases the average time every visitor stayed at a specific location. In other words, that’s how long people are spending on average in your store.

The average visit duration can help benchmark the stores in order to compare the average visit time across the entire retail chain.

AVD Clock

The AVD can be, in many cases, set up as a goal on its own. As an example, a company trading in the makeup industry will seek to make its customers sit down and try makeup on, contributing to more time spent in the store. In the same way, an apparel specialist will want its customers to spend time in the fitting rooms, leading to more sales.

Engagement Icon

5. Engagement Rate

This input breaks down the number of visitors that stayed longer than a specified duration. This is used to measure the level of customer engagement on the sales floor. With this KPI, it becomes easier to pinpoint which stores are more likely to convert visitors into customers and which stores could require additional attention.

Handshake Engagement Defining the duration time as a threshold is at the management’s own discretion. This number has to be representative of when a customer is considered engaged or not.

In order to increase the engagement rate, it is crucial to ensure that the store has enough sales staff available to assist visitors and plenty of merchandise on the shelves. This is essential to make sure that the store never misses an opportunity to turn a visitor into a buyer.



Engaging your customers with unique experiences

Every retailer wants to offer its customers fast and relevant assistance and to engage them at the right moment. Some made this a top priority and invested a lot of resources to make sure they provide the best customer experience possible. A perfect example is IKEA. The Swedish retailer is known for providing its customers with restaurants and babysitting services while they’re shopping.

Ikea Restaurant

Offering an experience only physical stores can provide is a terrific way to give your customers a good reason to keep coming back. Did you know that being able to test products or to try things on is one of the main reasons why people still visit brick-and-mortar stores?

As such, try to make your customers’ journey a unique experience they will remember, by offering, like FAO Schwarz, amazing shopper experiences in your store:

Fao Schwartz - BigPiano scene from movie Big (1988)

Customer engagement is all about inviting your customers to interact with your business and your staff, increasing, as a result, the image of the brand. When used to its full potential, a strong customer engagement strategy will improve loyalty, visit recency, conversion rate, average duration time, reduce bounce rate and will ultimately lead to increased sales.

Bounce Rate Icon

6. Bounce Rate

The term Bounce Rate comes from an online marketing KPI which originated from web traffic analytics. It indicates the percentage of online visitors who went to a specific page (e.g. homepage) of your website and left without visiting any other pages. It reveals the website’s efficiency at retaining visitors.

Thanks to modern Traffic Counting Solutions that integrate WiFi and Bluetooth technologies, this KPI has crossed over and is now available for brick-and-mortar locations.

Bounce Rate Trampoline

This metric is provided to physical retailers to evaluate their stores capacity at keeping their visitors engaged. Described in more basic terms, this is the number of visitors that stayed less than a specified duration.

Every retailer can define their own time associated with this metric that they believe is indicative of a bounce (e.g. < 2 min). It will be defined in correlation with the Engagement KPI, therefore one should also consider what an engaged visitor is while defining this number. Likewise, it must reflect the industry, the retail chain’s average visit time, and the location in the best way possible.

This is an essential KPI that offers a very comprehensive overview of how many potential customers leave the store too quickly. Monitoring this specific KPI is a great way to understand when and where to work on increasing customer engagement levels to attract more opportunities that will convert visitors. Optimized service levels are decisive to provide customers with a good shopping experience.

Staff greeting shoppers and effective merchandising will ensure your visitors find what they’re looking for and will help to reduce the bounce rate.

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The AVD and the Bounce/Engagement Rates are intimately connected. Taking advantage of good engagement opportunities will directly impact all of these KPIs. Increasing customer engagement levels will also boost dwell times, maximize upselling opportunities, lead to increased sales and it will bring you closer to achieving your store goals.

Bounce and Engagement

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Prodco Analytics delivers a comprehensive analysis platform that highlights where opportunities for improvement exist and helps your stores reach their real performance potential. Our retail performance solution delivers a deeper understanding of shopper behavior with real-time analytics at all levels of the operations and marketing team.

Stay tuned for part 3.

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12 Essential KPIs All Retailers can leverage using Traffic Counters – Part 1

Posted on March 19, 2019

KPIs for Retailers - Part 1

This is the first part of a 4 part series that covers the most relevant KPIs brick-and-mortar retailers can monitor through Prodco’s Traffic Counting Solutions. In this first article, we cover the first 3 essential metrics that retailers can leverage and that can help measure and drive performance: Door Counts, Passer-by Traffic and Capture Rate.

Door Counts

1. Door Counts

That’s the first feature any retailer will be looking for when thinking about the implementation of a People Counting Solution. It’s also the essential feature that our modern 3D stereoscopic camera can provide. Placed at the main entrance, the camera will accurately count people entering your store.

Shop Entrance - Door Counting

In order to provide comprehensive reports along with the most rigorous data possible, most 3D cameras will exclude children, carts, strollers, and some 3D cameras can also exclude staff, security guards and greeters.

Understand your traffic and know what to expect.

Retailers can take advantage of this data to gain insight into traffic trends and learn when the store will be busy to help make employee scheduling more effective. Increase conversion and sales by providing the best service levels possible, at the right time.

This metric also offers executives the possibility to identify the top and underperforming stores of the retail chain, based on opportunities that enter each store and measure performance such as conversion ratios.

Moreover, brick-and-mortar retailers can exploit this information to benchmark their stores against segment specific industry traffic trends (Prodco’s proprietary Retail Traffic Index).

Passer-By Traffic Icon

2. Passer-By Traffic

In addition to capturing traffic coming into the stores, some 3D stereoscopic cameras are capable of measuring passer-by traffic, using integrated Wi-Fi based technology.

Crowd in a Mall This data is very useful to measure the number of customer opportunities that pass directly in front of the store. In other words, passer-by traffic shows exactly what the store could be missing out on.

Another very important purpose of this data is its ability to measure location specific traffic trends.

A decrease (or increase) in traffic can be identified as being directly linked to your location. Perhaps the shopping mall where your store is located has attracted less traffic lately. Your street might be suffering from a sudden decline in popularity. Or maybe people are simply avoiding this particular street because of endless roadworks. As usual, measuring the right data and putting that into perspective is essential to grasp the full picture.

Capture Rate Icon

3. Capture Rate

Capture rate, or the percentage of passersby traffic that enters the store, and one of the biggest factors are a store’s windows and their displays.

Passerby looking at a window display It is more than fundamental to understand the true impact of the storefront and to ascertain how well it’s converting. This KPI will also help marketers analyze the performance of their marketing campaigns. Marketing strategies can be measured and adjusted based on solid data for each store location.

A store’s windows are its most valuable piece of real estate, and effective, compelling displays can greatly affect traffic through the front door. In many cases, it’s the “first moment of truth” for a physical store.

Some inventive retailers go the extra mile to make sure people will stop to admire their display. Like every year, the famous Parisian department store, Printemps, has spared no effort to impress passersby and make them want to enter their store, as we can see in this awe-inspiring picture of Printemps’ Christmas display in Paris.

Incredible Window Display By Printemps, Paris
via Printemps

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Prodco Analytics delivers a comprehensive analysis platform that highlights where opportunities for improvement exist and helps your stores reach their real performance potential. Our retail performance solution delivers a deeper understanding of shopper behavior with real-time analytics at all levels of the operations and marketing team.

Stay tuned for part 2.

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