Shopper flow is perhaps the most important insight to a brick and mortar retailer. You have carefully, meticulously arranged your fixtures and lighting in order to highlight what you believe to be your best product mix with an eye to promoting the more profitable items but also to sell lower priced add-ons. Store design and layout should be adjusted frequently throughout a season. Until now you have had to rely on sales register data and the anecdotal evidence provided by your sales associates. While these data points will always remain important, there is a revolutionary solution to maximizing your store layout in order to maximize revenue.
The applications of heatmap analytics in retail is revolutionizing the way retailers think about store layout. Heatmap analytics may sound complicated and expensive, however, it is a software based solution that utilizes the CCTV technology that you already own. It is truly that simple. Heatmap analytics will become invaluable to your business. The data it provides can be utilized by the CEO, the marketing department, store management, and even the IT department. retail data analytics is now accessible to you for your stores and not just your e-commerce efforts.
Heatmap analytics gathers shopper flow data from your CCTV cameras. The data are then manipulated by a patent pending algorithm to create a visualization of the “hot” and “cold” areas of your store layout. The hot areas represent where shoppers are spending the most dwell time in your store. The cold areas represent areas in your store that are virtually ignored. Of course the cold areas require attention. Merchandising is an art form. Every retailer would like a crystal ball to analyze shopper behavior. The cold zones in your stores provide you with that crystal ball allowing you to change your merchandising mix to include better selling categories in the cold zones.
Heatmap data can be manipulated and analyzed in countless ways. For instance, not only does heatmap technology provide you with a visualization of the hot and cold areas of your store, it also provides shopper count and shopper flow. This data allows you to calculate your marketing efforts based on times when shopper flow is highest and lowest. Perhaps you’d like to improve transaction size at those times when your store traffic is highest. Perhaps you’d like to steer your marketing efforts toward those times when in-store traffic is lowest. Heatmap retail analytics data can be used to imagine all sorts of revenue drivers.
Of course, in-store dwell time is also a data point that you would like to have quantifiable measurement of. Which store zones are shoppers passing completely and which store zones are shoppers stopping to touch and compare the merchandise? Before heatmap analytics, you had to rely on the anecdotal evidence provided by your sales associates. Dwell time can be reasonably measured by the amount of time needed to clean up at closing time but dwell time is much more than that. Heatmap analytics allows you to see how shoppers are truly interacting with your inventory, allowing you to adapt store layouts to coincide with the merchandise that captivates your shoppers.
One final point regarding store layout and the applications of heatmap analytics in retail: Queue management. Queue management is essential to analyzing staffing requirements. With your accurate heatmap data of total store visitors combined with register activity, you are able to determine how many shoppers are in a queue and exactly how long they are waiting to complete a transaction. Often times shoppers are choosing e-commerce over brick and mortar due to long queue times. By analyzing your visitor count and queue times you are able to adjust staffing in order to minimize queue times.
Heatmap analytics in retail has become an essential tool for actualizing your store’s potential. There is very little guesswork involved in store operations when you have invested in the data and subsequent reporting available to you from a heatmap. Please contact us to discuss how we can assist you in implementing a heatmap analytics program into your exiting retail environment.