All new stores should include analytics - Insights that Ignite No.12

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You wouldn’t buy a new car today without built-in analytics monitoring performance, and flashing warning signs
Yet retailers invest hundreds of thousands of pounds, euros and dollars in stores without any capability to monitor their performance other than through traditional traffic counting, POS transactions and total store conversion.
The rest of the store, and the story it tells, is a mystery!

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All new stores should include analytics - Insights that Ignite No.12

  1. 1. insights that ignite: blue touch-papersfrom VM-unleashed! Ltdwhy all new stores should include customer analytics:blue touch-paper no.12another blue-touch paperfrom VM-unleashed! Ltdinsights that igniteblue touch-paper No. 12why all new storesshould includecustomer analytics?
  2. 2. insights that ignite: blue touch-papersfrom VM-unleashed! Ltdwhy all new stores should include customer analytics:blue touch-paper no.12• You wouldn’t buy a new car today without built-in analyticsmonitoring performance, and flashing warning signs• Yet retailers invest hundreds of thousands of pounds, euros anddollars in stores without any capability to monitor their performanceother than through traditional traffic counting, POS transactionsand total store conversion.• The rest of the store, and the story it tells, is a mystery!Wouldn’t you like to know…• Traffic patterns throughout the store, “hot-spots” and “cold-spots”across each floor, and traffic flow between different floors?• Traffic, attraction, dwell, engagement and conversion bydepartment, zone or display area• Impact of focal points, graphics and feature displays• Queuing patterns and impulse attraction & conversion• Fitting room traffic flow and queuing patternsVMAnalytics & New Store DesignsUnlocking the mysteries of the physical store, and the stories it tellsThe cost of initial investment andinstallation of VMAnalytics in a500sqm store<£200001st third of the storeTraffic flowsTraffic splitAttraction of wall displaysDwell times of opening displaysDwell conversion of tablesEngagement of mannequinsConversion rates of bustsNew display techniques,Fixtures & FittingsAttraction to new wall displaysDwell times at new wall displaysDwell conversion at new displaysComparison of old/new techniquesChanges to traffic flowEngagement of new & oldConversion rates of new & oldStore Traffic FlowTraffic counting at destination pointsMonitoring of main aisle trafficTraffic between floorsTraffic at inter-floor junctionsAttraction to focal pointsDwell times at key junctionsThe average cost of design,development and build of a new500sqm store>£500000PeopleCountingTraffic Counting onlyAnalysis of:Entrance trafficCoverage of:Store entranceCameras:1PermanentNon-flexibleVMAnalyticsIn-depth and long termoverview of stores &strategic departmentsAnalysis of:Entrance trafficStore trafficStore EngagementZone TrafficEngagement RateDwell TimesDwell ConversionsSales TransactionsStore ConversionStaff ratiosCoverage of:Total store traffic andkey department withhigh space coverageCameras:10+Permanentbut flexibleVM Analytics offers the capability to measuremany store experience KPIs across importantareas of a new store, with conversions anddwells by department and zone, in addition tototal store traffic and sales conversion whichis the limit of traditional people counting.Queuing at tills/servicesTraffic flowsQueuing levels & patternsImpulse engagementImpulse dwellsImpulse conversions
  3. 3. insights that ignite: blue touch-papersfrom VM-unleashed! Ltdwhy all new stores should include customer analytics:blue touch-paper no.12The Anatomy of AnalyticsCustomise your counting, measure your success, meet your objectivesNumber of StoresMeasuredDuration ofMeasurement Number ofMeasurementsPer Store1. InstantAnalytics2. VMAnalytics3. VMAnalyticslight4. PeopleCountingWhat is in-store analytics?• In-store analytics uses store cameras and analytics softwareto measure customer movements and actions inside stores• The data can be accumulated and extrapolated to give uniqueinsights into where stores are failing and where opportunities lay interms of guiding customers to a wider variety, and more beneficialparts, of a store, getting them to dwell for longer in areas and atspecific displays, and where, when & how to convert more visitorsinto browsers and then into purchasers.• The 3 parameters to consider when measuring data are:-1. The number of things you want to measure per store2. The number of stores you want to measure3. The duration of time you want to measure for• To select the correct scope and depth of analytics investment,it is important to be clear what your objectives are:• To measure specific issues quickly and with purpose• To measure a range of issues over time• To create a store to continually test, measure, improve andimplement new store, sales & marketing initiatives• To simply measure store traffic1. Instant AnalyticsThe objective is to understandquickly and cost-effectively whatis happening in a specific area ofa store.Cameras are installed and set uptemporarily in a matter of hourswith data gathered and analysedover the following days.The temporary low-cost nature ofInstantAnalytics allows thecamera set-up to be movedperiodically to different areas ofthe store to measure andunderstand different issues.InstantAnalytics even allows foran “Analytics Calendar” to beemployed to measure in turn, theimpact of new store initiatives,seasonal displays, promotions,events & marketing campaigns.2.VMAnalyticsThe objective is to understand inmore-depth and for a longerperiod of time how a store andstore departments are working.Retailers may employ a coupleof full VMAnalytics storescovering strategic cluster orlocations.VMAnalytics is best used as atool to continuously test,measure, improve andimplement new store initiatives,displays, sales & marketingcampaigns.3.VMAnalyticslightSimply a lighter and lessexpensive version ofVMAnalytics. Retailers maydevelop several of these stores tocover a complete variety of storesituations and geographicalclusters.4.PeopleCountingOne camera located at theentrance of every store tomeasure traffic into and out of thestore
  4. 4. insights that ignite: blue touch-papersfrom VM-unleashed! Ltdwhy all new stores should include customer analytics:blue touch-paper no.12VMAnalytics monitors customer shopping behaviour using storesurveillance cameras, and transforms the behaviour patternsinto statistical data and links to live POS dataVMAnalytics calculates not only traditional store conversion rates butnever seen before KPIs such as:• Engagement Conversion - % of total traffic at specific displays• Dwell Times - average time spent engaging with displays• Dwell Conversion rate - % of people who dwelled that bought• ‘Transaction Value’ & ‘Items per Transaction’ for specificranges, displays and store areasVMAnalytics assesses the KPI evidence and transforms it intodecisive store actionsFor the first time retailers can see the direct impact onconversion and sales of product displays and visualmerchandising initiatives for specific ranges in specific locations.Never before have retailers been able to give such an accurateand precise answer to the perennial question:“What is happening in my store?”• Are shoppers engaged• Are my offers working?• Which promotional messages sell best?• What graphic design principles are attracting customers?• What is my optimal store layout?• Which fixtures and furniture are most effective?• Which packaging is most effective?• Which product display techniques attract attention & sell?• Which product groupings – single product, categories,coordinated categories or themes attract & sell?• Is my new assortment attracting interest?• Are customers being attracted to displays but not buying?• Are customer buying from a display, but not enough are beingattracted to it?• Which window treatments attract customers into the store?• How do i set staff schedules to maximise sales?• Does shopper behaviour vary by store location?…for more information please call Tim Radley+44 (0)7967 609849.VMAnalytics! from VM-unleashed!Answering the perennial question:“What is happening in my store?”VM-unleashed is a retailspecialist consultancy workingwith clients throughout Europeon training & implementation.Tim Radley is the founder andManaging Director and hasbeen working with best practiceEuropean retailers for over 20years including:-.All Saints, Camper, Boots,Carrefour, Primark, OttoVersand, Cortefiel, Oviesse,Coin, Springfield, Motivi,Adidas, Sonae, Alessi, Aena,Marks & Spencer, KappAhl,Imaginarium, Porcelanosa,Clarks, Aldeasa, Pepe Jeans,Trucco, Sony, Koton, Oltre,GasNatural, Orange…
  5. 5. VM-unleashed Ltd!11 Moat FarmRoyal Tunbridge WellsKent TN2 5XGUKTim RadleyManaging Directortim.radley@vm-unleashed.com07967 609849www.vm-unleashed.compinpointing & delivering ROI opportunities in physical & online storesfrom VM-unleashed! Ltd
  6. 6. VM-unleashed Ltd!11 Moat FarmRoyal Tunbridge WellsKent TN2 5XGUKTim RadleyManaging Directortim.radley@vm-unleashed.com07967 609849www.vm-unleashed.compinpointing & delivering ROI opportunities in physical & online storesfrom VM-unleashed! Ltd

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