experian FOOTFaLL: acting ON INSIgHT SeRIeS

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1 (224) experian FOOTFaLL: acting ON INSIgHT SeRIeS Uncovering amazing Customer Potential: turning an overwhelming stream of consumer data into actionable business intelligence

2 Everywhere consumers travel, they leave a fingerprint. From the transactions they make to the product searches they conduct, they are constantly generating a trail of information and there are huge sales opportunities to be gained from interpreting this data and putting it to work. Many retailers are fully aware of how capturable today s consumers are, but numbers alone are not enough. This second report in our Acting on Insight series details how cutting-edge techniques can turn an overwhelming stream of customer information into actionable business intelligence, to uncover amazing customer potential. Page 2

3 what captures their attention and when they choose to make a purchase. Strike a pose! Consumers are more capturable than ever before Counting customers is not a new phenomenon, but the sophistication with which retail traffic can be measured has increased dramatically in recent years. Retailers can now monitor who is entering and leaving their building with scientific accuracy, to build a detailed picture of retail activity during key trading periods. However, simply counting people moving in and out of the store is only one measure of what is happening. Retailers want to know where consumers go when they are in the vicinity, what captures their attention and when they choose to make a purchase. Advances in technology are now enabling retail businesses to create in-depth customer profiles by delivering previously unavailable data. People counting equipment, operational information and data analysis tools are being supplemented by new solutions, which use consumers mobile device connectivity to draw detailed pictures of visitor movement throughout their shopping journey. CONSUMER SALES COUNT IN-STORE QUEUE Page 3

4 Mobile: the capturable customer s new frontier There are 1.5 billion smartphones in the world, and consumers dependence on digital technology is creating new opportunities for retailers to gain granular detail on their shopping behavior. Using the signals being emitted from shoppers mobile connections, retail businesses can ascertain vital information such as: Movement around the store Dwell time in locations on the shop floor Activity surrounding promotions and events Repeat visitor numbers Number of passers-by versus store visitors The challenge for retailers is to integrate this information with other key business data to create a single, detailed view of customer activity. Until now, many retail businesses have been relying on in-house resources to combine and analyze data from these disparate sources, or looking at them in isolation rather than holistically. However, this can make it difficult or impossible to create the 360 degree overview necessary to pinpoint areas in which amazing customer potential can be uncovered. The challenge for shopping centers is to integrate this information with other key business data.

5 How can shopping centers convert consumer data into actionable insights? Once retailers have centralized all their key data, the next stage is to extract and analyze different strands of information to assess the efficiency and profitability of core business operations. Senior personnel can select the metrics relevant to their role, to determine actions that will improve the overall customer experience. For example: Monitor Identify Action Peel off rate into store from passing consumers Customer journey around store Abandoned purchase rates Popularity of store compared to overall footfall Traffic hot spots within store, dwell times Sale conversion rates compared to total consumer traffic Experiment with visual merchandising and promotional window advertising to determine what attracts the most customers Redistribute staff to underserviced areas, change layout or promotions in areas with poorest traffic to increase footfall and time spent in store Identify areas or times of day with poorest conversion rates, optimize merchandising and workforce availability to improve customer service First time visitors versus repeat customers Average number of visits, pinpoint high value shoppers Increase consumer engagement to increase customer value Customer service Marketing activity Performance of store estate Queue times, sales conversion rates Footfall changes during campaign, traffic around feature displays Benchmark performance across portfolio, average transaction value Enhance staff to customer ratio at times liable to queues forming, redistribute staff to underserviced areas Repeat effective marketing activities, avoid campaigns with poor ROI Share best practice with underperforming stores, set targets for improvement Page 5

6 Which retailers are leading the field when it comes to driving profit through actionable insight? Case study: MICHAEL HILL Renowned jeweler Michael Hill has refined its staff rostering to align employee levels more closely to actual shopper traffic patterns, to support ambitious growth targets. Prior to the project, Michael Hill stores based their staffing levels on historical sales and transactional statistics. To generate reliable information from which to make adjustments to its workforce requirements, Michael Hill selected Experian FootFall s Site Analytics for Retailers. By assessing footfall in half-hour segments against staff scheduling, Michael Hill was able to streamline its operational requirements in line with accurate customer volumes. This also led to an increase in sales activity, as the retailer increased staff levels during peak trading times where there were not previously enough personnel on-hand to provide a sufficient in-store experience. Page 6 Experian FootFall has worked closely with us to help us use the data in a way that would add shareholder value. The reports have taken the guesswork out of rostering and we ve seen significant lifts in conversion rates year on year. Phil Taylor, Chief Financial Officer, Michael Hill International

7 Case study: CRABTREE & EVELYN Global luxury toiletries company Crabtree & Evelyn craved accurate marketing campaign measurement across its network of 21 Australian stores, to pinpoint where it could leverage commercial advantages. I was impressed with how much we could get out of the Experian FootFall solution and to see the evident payback from having more accurate performance information. We no longer have to rely on the word of third parties and can identify instances where good sales figures and average transaction values were masking the fact that shopping center traffic is low. In these instances we re now able to go back to the landlord and negotiate ourselves into a better commercial position. Stephen Watt, Managing Director, Crabtree & evelyn australia By integrating customer counting and transaction data through Experian FootFall s Site Analytics for Retailers solution, the brand was able to ascertain the performance of each store, and benchmark them nationally. Crabtree & Evelyn used this information to motivate each store, running inter-outlet competitions based on based on conversion rates and average transaction values. As a result, average conversion rates have improved by 5% year on year, while average transaction values have increased 6% over the same time period. Page 7

8 About Experian FootFall Experian FootFall is the leading global retail intelligence service, enabling international retailers and shopping centers to understand their customers inside and out, and generate greater profits from that insight. Part of global information services group, Experian, FootFall has been providing actionable insight into consumer behavior for 20 years and now acts as a trusted advisor to retailers and shopping centers in Europe, Asia and the US. Our customer insight solutions are used in 40 countries by thousands of retail businesses, all of whom want to gain greater understanding of customer behavior and key performance indicators such as sales conversions, staff productivity and promotional effectiveness, in order to make profitable business decisions. In 2014, Experian FootFall launched Interior Analytics, a new solution that uses the latest connectivity technique to track customers as they move around your store or shopping center. Available as a standalone service or to enhance our Site Analytics solutions, which captures all of your business data, Interior Analytics provides our most detailed insight into what is affecting your business performance. To find out how Experian FootFall can improve your profits visit or contact our team in your region on (224) Page 8

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