Behavior Analytics: Comprehensive Technologies to Track Customer Behavior
When someone visits a retail store, there is a 20 to 30% chance that they are going to make a purchase. If your store has the items they want, the chances improve a little. If the store layout is simple enough for the visitor to find what they need, the probability of a purchase goes up even more. If there are no bottlenecks in the store and no queues at checkout, a purchase is all but certain.
As a retail store owner/manager, the questions you should be asking now are: how do I figure out my customers’ favorite products? How do I set up my store to make navigation easy for all visitors? How many checkout counters do I need to eliminate queues? Any store that can accurately answer all these questions increases its probability of making a sale from 20-30% to well above 50%.
The good news is that your visitors will give you all the answers you need. The bad news is you can’t ask them outrightly; this would be bothersome and inefficient. You will end up losing more customers than you’ll gain. Luckily, some technologies that make it possible to track and analyze how customers behave in your store. By analyzing their behaviors, you can predict what products they want, how to set up your store, how many staff you need, and so on.
Here is a list of the most effective technologies for customer behavior analysis and how they work:
Customer Counting System: Measures store traffic
Customer counting solutions keep an accurate count of how many people walk through a store, and measuring store traffic accurately is the first step in visitor behavior analytics. The information can be used to measure the store’s peak and off-peak periods i.e., predict the hours that customers are most likely to visit. It can also be used to measure conversion rate; how many people made purchases vs. the total number of visitors.
When you know the time customers are likeliest to visit your store, you can prepare in advance. You deploy more attendants and open up temporary checkout counters. This would also be a good time to advertise new products and promotional offers.
Heatmap: Outlines the customer’s journey through a store
Heatmap shows every customer’s journey through the store. The section they visited first, the one they spent the most time in, and the products they engaged with. It shows how easy it is for customers to move around the store and find their favorite products, and how they move from section to section.
When this behavior is analyzed, it tells you which products your customers prefer, their favorite sections, and their buying combinations. This analytics can be used to optimize store layout and product placement. It can be used to create cross-selling and up-selling opportunities.
For example, if many customers are buying shoes, put the socks aisle close-by. If a lot of people are buying chocolates and perfumes, introduce a small discount to convince other store visitors to do the same.
Queue Management System: Tracks queues and lost sales opportunities
The queue management software tracks wait-lines in real-time. It identifies which store sections have bottlenecks and how long visitors spend on queues. It measures cart abandonment—the rate at which customers abandon their shopping, and lost sales opportunities. The queue system notifies the manager when queues are starting to form in the store.
Demographic Analysis: Organizes visitors into different demographics
If store managers can separate their visitors into different demographics, it becomes easier to predict which products will appeal to them. With Demographic Analysis, you can easily identify the age range and gender of your visitors. You can also tell their moods as they leave your store; are they happy, sad, or frustrated?
Demographic Analysis is also effective for creating targeted ads. Imagine this: a 21-year-old woman stands in front of a display screen and is shown an advert that addresses her shopping concerns. Afterward, a 35-year-old man stands in front of the same screen and sees a different ad entirely, one that also addresses his particular needs.
Business Intelligence Platform: Converts customer behavior data to business reports
The Business Intelligence Platform is a reporting tool that helps store managers make sense of customer behavior. It converts unintelligible data into easy-to-understand analytics and business reports.
For example, MAG shows that 50% of your customers are sad as they leave your store. Or your Queue Management System shows that you lost 60% of sales opportunities. The Business Intelligence Platform tells you what caused these events.
Heatmap shows you how customers move around your store and the Intelligence Platform tells you how this information can be used to optimize store layout. The Platform tells you how many more visitors came to your store as a result of your new advert. It also compares your advert campaigns and tells you which ones are the best-performing.
The process is quite simple if you think about it. You track customer behavior in your store, you analyze the data to understand how they behave, you use these analytics to predict what they want, and you optimize your store accordingly. All these are made possible through the solutions listed above.
Retail store owners/managers looking to adopt any of the technologies for their stores can find out more on our website. Additionally, there is a free trial available to potential customers that want to see how their stores stand to benefit from the solutions.