Retail’s Black Hole – what’s really going on inside stores?

 

 

 

Competition from data rich ecommerce is forcing bricks and mortar retailers to adapt or die. In order to prosper, high street retailers need to understand what’s really going on inside their stores. Online shoppers’ behaviour is closely scrutinised and constantly monitored. As soon as a shopper logs on to an e-commerce website ads pop up and follow them around as they make their shopping journey and beyond.Meanwhile in the real world, retailer and brand owners are frantically playing catch up.  They have traditionally relied on EPOS data to tell them what shoppers are buying. EPOS data only gives a fraction of the picture though and doesn’t answer two of the key questions that are pivotal to analysing shopper behaviour, namely where are shoppers going and what are they doing?

For example, they can’t tell you that most shoppers who browse whisky, don’t actually buy it.  Nor can they reveal the shoppers lost at  lunchtime as the store is uncomfortably busy and queues are too long.

A recent SRI project focusing on the cereal aisle is a prime example of how using behavioural analytics is the only way for retailers to get a true understanding of what’s going on inside stores.  It revealed that only 42% of shoppers who enter the store actually go down the cereal aisle.  Of those, 43% do not even stop and browse and 26% browsed the petfood on the other side of the aisle. Therefore, only 13% of shoppers actively engaged with cereal.  This worryingly low numbers surely tells retailers and brand owners alike that they need to do more to attract and entice shoppers in to their categories.

Real-world insights are essential to gain a deeper understanding of the kind of experiences customers want, to maximise revenue within stores by using space and layout effectively. Retailers who have been watching closely and moving strategically to stay ahead of consumer expectations are thriving. Behavioural analytics are crucial in helping them understand customers’ wants and needs to maintain and increase wallet share.

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Find Time

How do we look for things?

Chances are that if you are like me at some point you will have lost something such as your keys and have had to try and find them. You will have gone first to the most logical places such as the key hooks by the door or the counter top in the kitchen; but if your keys don’t show up there you’ll try elsewhere, working through a mental list of all the possible places that your keys might be. As the search goes on you’ll probably feel yourself getting more and more frustrated and possibly start thinking about how much time you are wasting and how you need to be moving on to do something else. But you don’t stop, you need your keys!

Looking for products in a supermarket is no different. (more…)

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