Jim Riesenbach, CEO of indoor location analytics solutions provider iInside, recently had a conversation with Chain Store Age about the numerous advantages both retailers and consumers can obtain from precise understanding and analysis of how customers move and shop inside the store.
How can both retailers and consumers benefit from targeted, accurate indoor location metrics?
Retailers have historically relied primarily on revenue data in varying forms to determine performance, gross revenue, same-store sales, average transaction value, revenue-per-square foot and more. While these metrics are critical, they are not nearly enough to satisfy data-hungry retail executives. Indoor location analytics provides a whole new level of insight regarding how many people shop, their behavior in the store, and ultimately how each store and each individual department performs. These tools use traffic and shopper behavior data to substantially improve store performance, and maximize the customer experience by giving consumers a more relevant, targeted experience.
How does indoor location analytics improve the omnichannel experience retailers provide?
Stores are becoming more mobile-connected, and retailers are incorporating accurate indoor location analytics to enable the omnichannel experience. Today’s consumer wants timely, useful, personalized, instantly accessible information. Shoppers use mobile devices to compare prices and products, research features, read reviews and to download coupons, often based on their specific location. With location analytics, retailers use mobile devices to better understand customer behavior and patterns, then provide targeted deals and promotions both in-store and after their visit.
How can indoor location analytics improve a retailer’s processes?
Retailers can now integrate predictive, accurate consumer traffic data into their existing operations, merchandising and marketing reports and process. Properly utilized, location analytics help retailers optimize individual department and store performance, identify otherwise obscured high and low performers in the chain or region, and benchmark performance against industry trends.
What specific analytical capabilities does iInside’s technology provide?
Department-level performance analytics, operations and staffing support, and a real-time location-based connection to mobile loyalty apps are a few powerful applications Interior Location Analytics provides. Our advanced platform delivers highly accurate traffic data, including traffic patterns, dwell times, first visit, departmental conversion, repeat visits, labor requirements, queue waiting times, showrooming behavior, and merchandising and marketing effectiveness.
Examples of common uses of location technology include tracking departmental performance, which gives retailers a data-driven basis to determine the percentage of sales versus visits at the departmental and even brand level, as well as determining how a change in store format or layout affects traffic patterns. This delivers almost instant feedback to gauge the effectiveness of change, and if customers visit more or less frequently as a result.
Retailers can also measure the effect of moving merchandise, including critical success measures, such as time spent in front of merchandise and what shoppers do after visiting specific locations, as well as interact with consumers via a store-based mobile app. In addition, they can measure how they manage queue wait times. Benchmarking this critical customer service metric maintains chainwide accountability to reduce wait times.
Real-time and historical data seamlessly integrates into BI platforms, HR scheduling applications and more. Because traffic analytics are collected anonymously, no personally identifiable information is ever captured or stored. By implementing iInside’s platform, retailers are armed with the actionable intelligence and solutions needed to enhance store performance and improve the customer experience.