Let’s say your bosses at a big retailer tasked you to build an e-commerce web site. You’d spend hundreds of hours to pick out just the right merchandise, create great visuals to properly display the products, develop a great marketing plan to drive traffic to the new site, and pick out a fast and easy way to process payments.
After all this time and energy, imagine you then went back to your bosses and told them “yeah, of course we will also have analytics on how well the site will perform. We will know exactly how much money we make in sales and know exactly how many people come to the home page.”
Wait. What was that last part?
Know how many people come to the home page? What about the rest of the site? What about the product pages? What about the rest of the customer experience?
As you can imagine, this would not end well for you. Yet, this is exactly what hundreds of physical retailers are doing today. They are installing simple traffic counters at their front doors and convincing themselves that “hey, we have an in-store analytics solution!” Yet, nothing could be further from the truth.
Getting accurate front door traffic counts is an important foundational element in building out an in-store analytics solution – just like getting traffic counts to a home page. But this is just where the analytics journey begins. There is certainly ROI during this first step (drive conversion, optimize staffing and labor hours, etc.), but the next questions and the opportunities they present quickly arrive. Where do my shoppers go after they reach my front door? How many pass by my shop but don’t come in? Which products do they browse but don’t purchase? How do I optimize the performance of my store?
Retailers need to think broadly about understanding in-store behavior and ensure they have a platform that will scale with the types of questions to which they need answers – today and tomorrow. Deploying a point solution will not get them there.
In-store analytics is a journey, and using these type of insights is going to be the key for retailers to drive performance in the new retail landscape. Retailers need to understand all of the “knobs” that can drive in-store performance (window display, customer service, lighting, fixtures, merchandise, etc.) and have data that enables them to make the right changes at the right times. That is the goal of a Traffic 2.0 solution. Make sure you have a path for the answers you need today and the questions you will need to answer tomorrow.
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