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VM Unleashed-vm analytics: Discovering your stores

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What is beyond traditional traffic counting for retailers? What is beyond the ability to measure store conversion figures? …

What is beyond traditional traffic counting for retailers? What is beyond the ability to measure store conversion figures?
Across whole store portfolios, analytics using digital cameras offers the combined functionality of traffic counting, security surveillance, staffing, queue control, exception reporting, distance monitoring, remote training and VM implementation.
Across a selected number of strategically important “VMAnalytics” stores the benefits for the retailer explode when dwell, attraction, engagement and conversion can be measured not only for stores, but also departments, ranges and individual displays.

http://www.slideshare.net/timradley
https://www.vm-unleashed.com
https://www.facebook.com/VMunleashed.Ltd

Published in: Retail, Business, Technology

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  • 1. a unique approach to measuring in-store customer behaviour using IP cameras & analytics technology discover the new store experience KPIs discover zone engagement, dwell & dwell conversion VMAnalytics! analytics into answers into actions VMAnalytics! answers into actions from VM-unleashed! from VM-unleashed! discover zone engagement, dwell & dwell conversion measure and manage customer traffic flow increase promotional engagement & conversion maximise the return on new store investments identify & solve specific store problems increase conversion through product display justify and optimise the role of visual merchandising customise your counting, measure your success, meet your objectives
  • 2. Why VMAnalytics? The new store experience KPIs for the commercial success Retail is Detail For most developed retailers the “big-wins”of sales and profit improvement have already been achieved in the evolution of the business. Further commercial increases will now come from incremental advancements of many elements that together impact on the overall store performance figures. Traditional store data analysis is limited to sales, traffic and conversion rates for any store, and is sadly lacking in any detailed measurement of how that conversion is achieved. VMAnalytics allows retailers to measure and benchmark important, but previously hidden, store experience KPIs and to see How do we traditionally measure & improve store performance? • Experience counts for a lot when it comes to making decisions on how to improve the store performance. • However even with the benefit of experience, major decisions and store investments are made with alarmingly little knowledge about what is happening inside our stores • Some competitor benchmarking • A degree of shrewd decision-making • Some “gut feeling” • A varying amount of luck • Even more worryingly, when things do go well, it is still not always easy to measure or know what is was that caused the improvement. From “Poverty to Authority”- the new store experience KPIs • VMAnalytics measures not only traditional store conversion rates but never seen before store experience KPIs such as: Department traffic - % of /amount of traffic that visits departments Circulation –flow of traffic around stores, departments & areas Area Traffic - % of/amount of store traffic that goes to store areas Attraction - % of/amount of area traffic that visits specific displays VMAnalytics! answers into actions from VM-unleashed! store experience KPIs and to see for the first time where specific improvements to these figures will lead to overall sales performance increases. Attraction - % of/amount of area traffic that visits specific displays Browse Time - Average time spent engaging with specific displays Browse Conversion rate - % of people who browse at a display, handle a specific product that then buy. • It is the measurement of these “Customer Journey KPIs”and the actions taken to improve the “Purchase Funnel”that will build into improved store performance! “The Purchase Funnel” & “Customer Journey KPIs” Store traffic Store circulation Traffic flow Duration in store Store conversion Department traffic Dept. circulation Traffic flow % of store traffic Duration in dept. Dept. sales conversion Product area traffic Area circulation Traffic flow % of store/dept. traffic Duration in area Product area sales conversion Product display traffic Traffic flow & approach % of store/dept/area traffic Duration at display Specific product browse time Display sales conversion Specific product conversion Sales, number of transactions, aver’ge value & basket value by department, product area and display
  • 3. Analytics into Actions - “The Wheel of Fortune!” Delivering improved store experience and store performance How do retailers act on the data from VMAnalytics? • VMAnalytics tells a retailer “what is happening?”in its stores • VMAnalytics also shows which store performance KPIs need to be improved in those stores. • However VMAnalytics is only as effective as the interpretation of the answers, and the actions it takes from them. • VMAnalytics needs to be combined with best practice benchmarking and experience of the retail experience to identify which store elements need to be improved, and how • VMAnalytics should be used in strategic stores to continually test, measure, improve and implement new store initiatives to increase store experience KPIs. “The Wheel of Fortune!” Opportunities for store performance improvement fall into 4 main disciplines… 1. Product assortment structure, segmentation & stories 2. Space planning, densities, layout & customer journey 3. Visual display, presentation tools & selling techniques 4. Branding, interior design, visual communication, marketing campaigns and promotions Do you know within which of these disciplines lay the opportunities to increase store performance? space allocation product stories: location of categories, heroes and silhouettes impulse: queuing systems conversion of sqm to linear metres: fixture density display density: options per sqm mix & balance: themes, silhouettes, categories, story size: option width of fashion position & end-use: mix, weighting and focus of fashion positions & end-use story balance: mix & weighting of coordinated categories VMAnalytics! answers into actions from VM-unleashed! walkways: configuration, width & marking space layout: department, location and adjacencies first 1/rd store: product, layout, fixtures, prices, communication space planning, densities, layout & the customer journey visual display, presentation tools & selling techniques unit depth: density of display visual display: style, quality and skill of visual display techniques mannequins & busts: density, style, grouping, plinths, & location visibility perception: priority visibility of image makers, basics and best sellers focal points: number, location and delivery of hot spots product blocking: product application & treatment display techniques: mix/balance of frontal, lateral hanging and folded wall display: levels of display wall rhythms: balance, repetition, size and symmetry of blocks cross-merchandising: techniques and application space layout: department, location and adjacencies space allocation square metres of departments & sub-depts...internal height: use, location of internal walls & fixtures cash area & fitting rooms: location and numbers product stories, assortment, structure & segmentation branding, visual communication, interiors & promotions distribution: wall and floor story location categories, coordinated categories & hero products option width of product stories ticketing & packaging: interaction: demonstrations, tastings and testing prices: mechanics, visibility, design & density new initiatives: introduction of new product stories number & frequency: number, dynamic & duration of product stories story structure: mix & combination of image makers, best sellers & basics best seller categories: focus and timing of historical best seller categories pos & signage: size, materials, design & density events & marketing campaigns: promotional messages & “tone of voice” price heroes: communication & design communication technology: purpose, impact, design & location promotional product: width, depth & blocking promotional delivery: fixtures, mechanics graphic mechanics: interior design features: lighting, materials, colour, flooring, signage, logos, fixtures, mechanics
  • 4. The Anatomy of Analytics Customise your counting, measure your success, meet your objectives What is in-store analytics? • In-store analytics uses store cameras and analytics software to measure customer movements and actions inside stores • The data can be accumulated and extrapolated to give unique insights into where stores are failing and where opportunities lay in terms of guiding customers to a wider variety, and more beneficial parts, of a store, getting them to dwell for longer in areas and at specific displays, and where, when & how to convert more visitors into browsers and then into purchasers. • The 3 parameters to consider when measuring data are:- 1. The number of things you want to measure per store 2. The number of stores you want to measure 3. 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 and implement new store, sales & marketing initiatives • To simply measure store traffic 1. Instant Analytics The objective is to understand quickly and cost-effectively what is happening in a specific area of a store. Cameras are installed and set up temporarily in a matter of hours with data gathered and analysed over the following days. The temporary low-cost nature of InstantAnalytics allows the camera set-up to be moved periodically to different areas of the store to measure and understand different issues. InstantAnalytics even allows for an “Analytics Calendar”to be employed to measure in turn, the impact of new store initiatives, seasonal displays, promotions, events & marketing campaigns. VMAnalytics! answers into actions from VM-unleashed! Number of Stores Measured Duration of Measurement Number of Measurements Per Store 2.VMAnalytics The objective is to understand in more-depth and for a longer period of time how a store and store departments are working. Retailers may employ a couple of full VMAnalytics stores covering strategic cluster or locations. VMAnalytics is best used as a tool to continuously test, measure, improve and implement new store initiatives, displays, sales & marketing campaigns. 3.VMAnalyticslight Simply a lighter and less expensive version of VMAnalytics. Retailers may develop several of these stores to cover a complete variety of store situations and geographical clusters. 4.PeopleCounting One camera located at the entrance of every store to measure traffic into and out of the store 1. InstantAnalytics 2. VMAnalytics 3. VMAnalyticslight 4. PeopleCounting
  • 5. VMAnalytics –“Ask the right questions!” Customise your counting, measure your success, meet your objectives 1. InstantAnalytics 2.VMAnalytics 3.VMAnalyticslight 4. PeopleCounting Quick & easy answers to specific questions In-depth and long term overview of strategic store/dept Mid-level long term overview of strategic store/dept Traffic Counting onlyPurpose Store Engagement Zone Traffic Engagement Rate Dwell Times Dwell Conversions Sales Transactions Entrance traffic Store traffic Store Engagement Zone Traffic Engagement Rate Dwell Times Dwell Conversions Sales Transactions Store Conversion Staff ratios Entrance traffic Store traffic Store Engagement Zone Traffic Engagement Rate Dwell Times Dwell Conversions Sales Transactions Store Conversion Entrance trafficAnalytics What are the right VMAnalytics for you? • The most important consideration for choosing analytics is what do you need to know about your store and your customers? • Even a higher investment can be worth the ROI if the output is fundamental to commerciality Other important considerations are: • Are you in a hurry to get answers? • Are your stores fast-paced for quick answers? • How many store clusters do you have? • Do you have franchisees and retail partners? • Is a wide geography part of your business? • Do you want to take control of analytics? VMAnalytics! answers into actions from VM-unleashed! Specific location and coverage linked to problem solving Total store or department with total or high space coverage Total store or department with medium or low space coverage Store entranceStore Location & Space Coverage Quick 1 week Longer 1 month Quick 2 weeks Time to implement and deliver data Average 3 weeks 1+ 10+ 1No of cameras 4+ 2 weeks+ Permanent PermanentData/analysis period Long-term Totally Flexible Some flexibility Non-flexibleFlexibility over time Flexible Low High LowCost Medium Camera placement Analytics set-up Data analysis Action recomm’tions Camera placement Analytics set-up Data analysis Benchmarking Continual action recomm’tions Test, measure, adapt Set-up daily/weekly & monthly reports Periodic trend reports Set-up daily/weekly & monthly reports Support Required Camera placement Analytics set-up Data analysis Benchmarking Action recomm’tions Test, measure, adapt Set-up daily/weekly & monthly reports Set-up, analysis & implem’ntation training Most complex In-depth training Non-requiredEase of training and client handover Set-up & analysis training
  • 6. • IntantAnalytics cameras/server installed and set up within hours • Data gathered and measured within hours • Data analysis and conclusions within days • Action plan implemented and analysed within days • The temporary low-cost nature of InstantAnalytics allows the camera set-up to be moved periodically to different areas of the store to measure and understand different issues. InstantAnalytics –“Answers into Actions!” Because “a week in retail”is a long time Months 1 & 2… Analysis of Queuing systems Traffic flow to queuing Queuing patterns Daily patterns of queue length Impulse engagement Impulse dwell times Impulse conversion Testing impulse strategies The cost of initial investment and installation of InstantAnalytics with 4 cameras and server Month 3 … Analysis of Month 4… The cost of moving cameras. <£500 <£1500 VMAnalytics! answers into actions from VM-unleashed! Analysis of 1st third of the store Traffic flows Traffic split Attraction of wall displays Dwell times of opening displays Dwell conversion of tables Engagement of mannequins Conversion rates of busts Month 4… Analysis of New display techniques Attraction to new wall displays Dwell times at new wall displays Dwell conversion at new displays Comparison of old/new techniques Changes to traffic flow Engagement of new & old Conversion rates of new & old Months 5 & 6… Analysis of Store Traffic Flow Traffic counting at store destination points Monitoring of main aisle traffic Attraction to focal points Dwell times at key junctions Engagement with store signage Months 11 & 12… Analysis of Christmas Shop-in-Shops Customer traffic flow Attraction of Christmas shops Dwell times in shops Engagement of key displays Dwell conversion of shops Comparison of adornments yield • IntantAnalytics allows for an “Analytics Calendar”to be employed to measure anything from traffic flow, the impact of new store initiatives, queuing & impulse strategies, seasonal displays, promotions, events & marketing campaigns.
  • 7. How does VMAnalytics work? Data capture, integration, analysis and output IP Digital Camera(s) Store Server (if required) POE switch (Power over Ethernet) Data Capture6 Steps to in-store analytics 1. Technical and strategic store visit • Discuss analysis objectives • Define number & location of cameras to achieve objectives • Identify and solve technical issues 2. Agree scope, costs & implementation time 3. Implementation store visit • Install cameras • Install software on dedicated server 4. Coordinated retail merchandise audit • Map SKU sales data related to monitored areas 5. Activate & set-up analytics: • Create traffic & dwell zones • Validate accuracy and sensitivity 6. Real time outputs: 1. Convert data into actionable reports 2. Create personalised dashboard VMAnalytics! answers into actions from VM-unleashed! Data Integration & Analysis Weather Data Staff Schedules POS System Data Output Retail Calendar Camera integration & Analytics Set-up VMAnalytics Software
  • 8. • 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! 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 by department, zone or display area • Impact of focal points, graphics and feature displays • Queuing patterns and impulse attraction & conversion • Fitting room traffic flow and queuing patterns VMAnalytics & New Store Designs Unlocking the mysteries of the physical store, and the stories it tells The cost of initial investment and installation of VMAnalytics in a 500sqm store New display techniques, Fixtures & Fittings Attraction to new wall displays Dwell times at new wall displays Dwell conversion at new displays Store Traffic Flow Traffic counting at destination points Monitoring of main aisle traffic Traffic between floors Traffic at inter-floor junctions The average cost of design, development and build of a new 500sqm store VM Analytics offers the capability to measure many store experience KPIs across important areas of a new store, with conversions and dwells by department and zone, in addition to total store traffic and sales conversion which is the limit of traditional people counting. <£10000 >£500000 VMAnalytics! answers into actions from VM-unleashed! 1st third of the store Traffic flows Traffic split Attraction of wall displays Dwell times of opening displays Dwell conversion of tables Engagement of mannequins Conversion rates of busts Dwell conversion at new displays Comparison of old/new techniques Changes to traffic flow Engagement of new & old Conversion rates of new & old Traffic at inter-floor junctions Attraction to focal points Dwell times at key junctions PeopleCounting Traffic Counting only Analysis of: Entrance traffic Coverage of: Store entrance Cameras: 1 Permanent Non-flexible VMAnalytics In-depth and long term overview of stores & strategic departments Analysis of: Entrance traffic Store traffic Store Engagement Zone Traffic Engagement Rate Dwell Times Dwell Conversions Sales Transactions Store Conversion Staff ratios Coverage of: Total store traffic and key department with high space coverage Cameras: 10+ Permanent but flexible Queuing at tills/services Traffic flows Queuing levels & patterns Impulse engagement Impulse dwells Impulse conversions
  • 9. VMAnalytics monitors customer shopping behaviour using store surveillance cameras, and transforms the behaviour patterns into statistical data and links to live POS data VMAnalytics calculates not only traditional store conversion rates but never 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 specific ranges, displays and store areas VMAnalytics assesses the KPI evidence and transforms it into decisive store actions For the first time retailers can see the direct impact on conversion and sales of product displays and visual merchandising initiatives for specific ranges in specific locations. Never before have retailers been able to give such an accurate and precise answer to the perennial question: VMAnalytics! from VM-unleashed! Answering the perennial question: “What is happening in my store?” The data can be accumulated and extrapolated to give unique insights into where stores are failing and where opportunities lay in terms of guiding customers to a wider variety, and more beneficial parts, of a store, getting them to dwell for longer in areas and at specific displays, and where, when & how to convert more visitors into browsers and then into purchasers. The 3 parameters to consider when measuring data are:- The number of things you want to measure per store The number of stores you want to measure The duration of time you want to measure for VMAnalytics! answers into actions from VM-unleashed! and 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 being attracted 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.
  • 10. VM-unleashed unlocks the multi-channel profit potential of retailers by integrating the buying, visual merchandising and selling functions, for traditional stores and on-line channels. which product? how much of it? how to segment and group it? how to display and communicate it? how to promote and sell it! ...and how to make it happen in your company? Space planning & allocation maximising sales/profit productivity per sqm., space density and store capacities –store grading, square metre to linear metre conversion, store & web space allocation, fixture capacity and design flexibility. Assortment structure display Segmenting the assortment for customer ease-of-shop, balancing product story types, defining construction of options within stories, planning the flow of goods to construct and fragment stories. Store layout & web architecture VM-unleashed! Delivering your store selling fundamentals - making the most of what retailers have VM-unleashed is a retail specialist consultancy working with clients throughout Europe on training & implementation. Tim Radley is the founder and Managing Director and has been working with best practice European retailers for over 20 years including:-. All Saints, Camper, Boots, Carrefour, Primark, Otto Versand, Cortefiel, Oviesse, Coin, Springfield, Motivi, Adidas, Sonae, Alessi, Aena, Marks & Spencer, KappAhl, Imaginarium, Porcelanosa, Clarks, Aldeasa, Pepe Jeans, Trucco, Sony, Koton, Oltre, GasNatural, Orange… VMAnalytics! answers into actions from VM-unleashed! Store layout & web architecture Segmentation, architecture and intuitive navigation, sightlines and focal point planning, best seller merchandising, “contact points”to stimulate impulse purchasing, cross-merchandising. Visual Merchandising Commercial display with optimum option and unit densities, creative display for maximum rates of sales, integration of actual and planned best sellers, image makers, high & low margin product. Retail Calendar, Events & Promotions sales promotion strategies and calendars, price & promotional communication, stimulating the assortment, controlling store & web space, time and graphic communication, dynamic promotional layering, window strategy & display, store & website promotional journey, e-newsletter delivery. VM tools & processes, team structure & training developing guidelines & manuals, space plans & zoning, developing store regimes and routines, instilling a culture of visual merchandising “from boardroom to stockroom!”, improving visual merchandising skills in-store, developing & delivering training programmes. … for more information please call Tim Radley +44 (0)7967 609849.
  • 11. The VM-unleashed! Learning Tree Do you have “The Perfect Store or the Perfect Storm?” “The Perfect Store or The Perfect Storm?” “The Perfect Store”for the retailer is always the result of correctly aligned strategy, selling principles, tools and support training. “The Perfect Storm”arises when the strategy, principles and selling tools are simply not correct, uncoordinated, poorly resourced and often the result of poor and outdated retail awareness, perceptions, education and training. Do you know what your correct approach to service and non-service selling should be based on your product proposition, store skill-sets, customer demographic, geographic culture? Do you grade stores by Selling Strategy and do you train your staff accordingly and appropriately? Do you get your store VM principles correct based on your Selling Strategy and customer proposition? - Assortment structure & segmentation - Display densities & store capacities - Store layout, locations & adjacencies - Product display techniques - Retail calendar & promotions - Visual communication & branding - Store design and customer experience VMAnalytics & InstantAnalytics fit into the wider picture of retail strategy, store selling strategy, store selling principles and the variety of “selling tools”that a retailer can use to drive sales and profit through its stores. “A Fish Rots from the Head” Remember a fish rots from the VMAnalytics! answers into actions from VM-unleashed! Do you measure the new store KPIs? Do you have the ability to measure the strengths & weaknesses of your stores and analyse store initiative ROI. - Store Traffic & Conversion - Attraction of store areas & displays - Dwell times at displays - engagement rate of displays - Dwell conversion rates - Conversion rates by display Do you have the correct VMSellingToolkit to support your store selling strategy? - VM Product Display Book - Seasonal VM Guidelines - Dynamic product communication - A Training Academy - A Retail Calendar - Sales Incentive Schemes - Store design & refreshment actions - Buying & Merchandising Support Do you have the correct skill-sets in your store teams, support and train them to implement and maintain “Perfect Stores!” - Basic VM skills & awareness - Product knowledge & brand passion - Store space awareness - Store operational disciplines - Daily/weekly rules & regimes - Customer & market awareness - Customer Service Skills VMGlue Training from “Boardroom to Stockroom”creates vertically coordinated retail teams and processes, building an awareness and a VMGlue between buying & selling, head office and stores. Remember a fish rots from the head! Training and education is not just for the seller on the shop floor but from the CEO downwards. To stay ahead of current best practice, latest thinking and best practice tools, processes and technique a retailer needs… . Training & Education from “Boardroom to Stockroom”
  • 12. VMAnalytics! analytics into answers into actions VM-unleashed Ltd! 11 Moat Farm Royal Tunbridge Wells TN2 5XG UK Tim Radley Managing Director tim.radley@vm-unleashed.com +44 (0)7967 609849 www.vm-unleashed.com customise your counting, measure your success, meet your objectives from VM-unleashed!