Optimizing customerﬂow gives higherrevenue and improvedcustomer satisfaction !Humanlink Finland OyVMT
Mission: Go to H&M and buy a pair of jeans Women ManMan WomenTime: 6 min. Time: 3 hr. 26 min.Cost:199,- Cost:4 398,-
Topics to be covered• Why understand customer movement• Customer cases: Gas stations Telecom concept store Pharmacies Convenient store Consumer electronics• Customer Tracking Technology
Why understand customer movements ?• Marketing budget hits the cealing• There will be investments in new information channels.• Influence directly on customers buying behaviour• Find the cold and warm spots in a store• Competition regarding product placing increases
Why understand customer movements ?• Put campaign areas and impuls products where the customers are• Get to know what the customers see and what they react to• Customers demand more modern design• Improve customer satisfaction
How to get needed information?• Do exit interviews of the customers regularly• Use customer counters• Use customer trackingBest of all – use a combination of the three.
Customer TrackingTechnology• We use a wireless digital pen with a built-in camera that takes more than 120 pictures per second in combination with a intelligent sheet of paper.”The Anoto pattern”• Printing this dot pattern on the paper makes it possible for the digital pen’s built-in camera to detect pen strokes and record handwriting that can then be stored and sent digitally.• With this tool the customer’s path through the store is registered. When the customer tracking period is over, results are reported and analyzed.• The customer path can be viewed online in realtime in our “Tracking portal”
Case – Gas station• Background and goals Looking at: How customers move Where do the customers stop Do the customers purchase anything This will contribute to a design and actions so: The customers stay longer in the shop The customers could purchase more items The customer will choose this station also at their next visit. When redesigning the station valuable information is gathered.
Gas station project• The station had 2 entrances• 3 days with observations• 140 observations• Average stops pr customer is 1,65• Average time in station is 1 min and 6 sec• 80% choose entrance close to the cashier• Customers walk in and out - no walk around• 80% ”looses” the possibility to buy impulse products Cashier
Gas station In Easy changes• From two to one entrances Campaign area/• 80% more customers will pass campaign Impuls products areas/impulse products.Result Out• Time in shop more than doubled• Revenue increased by almost 30%
Case – Telecom Concept store• Background and goals Looking at: How customers move? Where do the customers stop? Do the customers purchase anything? Do the customers use “Self-Service” areas? Does this “concept store” work according to goals? This will give: Valuable information in where to place campaign areas and cashier Valuable information when designing next shop
CampaignTelecom concept store Productarea/ Self service shelvesPerceived customer movements• Traditional to ”the right” movement.• The customer should pick products themselves• Campaign area easy to reach Productarea/ Self service shelves• Easy to move around
Telecom concept storeActual customer movements• Several barriers• Behind the cashier phenomena• The perceived pathway is to narrow.• Campaign areas difficult to reach
Telecom concept storeChange customer movements• Move the cashier• Move campaign area to achieve better effect of campaign products• Get more open areas• Move perceived barriers• Get full effect of normal ”to the right” movements and get full effect of all ”Self-Service” areas.
Case – Pharmacies• Background and goals The pharmacy chain wish to complete customer flow analysis in some of their pharmacies to learn more about customer behavior in their pharmacies, and use this knowledge to prepare pharmacists with regard to optimal customer flow, the trade position, and communication and customer care. The result will be used for input and discussion points in the store layout and marketing division. The results will be documented in a "best practice" manual for use by individual pharmacies.
Pharmacies• Observation areas chosen based on the needs to understand the customers movement regarding staffed service areas and areas where the customer choose products themself.• 600 observations in 6 different pharmacies in 3 days.• We were looking for all areas for improvements• Small changes gave huge results Cold zones Hot zones
Gerd Byremoen, Marketing manager,Vitusapotek Norway (Celesio Norway)We increased sales by 36% in one month in one ofour pilot study shops. After having used the analysisfrom the customer flow project, we changed thefurnishing and product placement and we made theshop more tempting for the customers
Case – Convenient store• Background and goals The largest chain for Video/Movie rental (450 stores in Norway) experience that they are loosing customer to new methods like video on demand, streaming and internet stores. They wanted to see if they changed the customer flow in the store helped in order to get higher impulse sales. In understanding the customer flow the chain will use the result as discussion when designing new stores. The results will be documented in a "best practice" manual for use by individual stores.
Convenient store Change customer movements• All customers moved to the right• Poor circulation in store• Left part of store is a cold zone• Changed floor layout• Changed categorizing• This totaly changed the customer flow• Increased sales by 11%• Exit interviews showed more satisfied customers
Case – Consumer Electronics• Reason for customer tracking Quality check of new store Do the new layout work as planned? Will open layout reduce or increase circulation? Will customers turn right as planned? Find Hot & cold areas Typical layout from the 1990s
Consumer ElectronicsResults• Time in store is significantly longer in the new layout. The customers are in average 15.5 minutes versus about 10 minutes in the old layout.• Customers stop in average in twice as many zones in the new layout• Being able to move freely around the room and not be bound by forced walking path increases the average time the customer is in the shop and thus the likelihood of increased revenues.• We also see that there are far fewer cold zones in the new store - Better circulation by "open shop".• Customer satisfaction raised by more than 20%
What does a better customer flow give you?• Customers will stay longer in the store• Customers will buy more• Customer satisfaction improves• Customers enjoy being in the store• Customers will come back• Customers will become a good reference
….which again will give youimproved revenue and improvedcustomer satisfaction….
To understand customer movement, is tounderstand what happens next ?