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Creating positive CX with location-based tech

4th Aug 2017
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With experience being the new differentiating factor in the retail sector, businesses need to better understand consumer behaviour to effectively mould the physical store to suit individual expectations and needs.

By using location-based analytics retailers can get a clearer view of the customer, recognising whether they chose to enter, where they go within the store, where they spend the most time and whether they return visit.

By utilising this insight, retailers can optimise store operations, such as visual merchandising, staffing ratios and marketing efforts, in order to customise shopper experiences and reward loyal customers.

Leading retailers are already leveraging shopper mobile devices with location-based technology to provide personalised experiences. For example, by understanding that a certain customer will always dwell in the sports aisle, the retailer should look to offer a promotion on a related item during this time, such as protein shakes located in another aisle to encourage further spend in-store.

Charlotte Russe is one such brand that has optimised location-based technology capabilities and implemented an “Appy Hour,” which uses its mobile application, sending localised customers discounts via the app. As a result, sales increased by 42 percent during a single day.

Similarly, Flip Flop Shops found a unique way to drive shoppers into stores through in-store Wi-Fi. The store, located inside a 250-store mall, placed a sign in the window that said they offered free Wi-Fi to guests. Upon entering the store and logging into the store’s Wi-Fi, the guests received exclusive coupons. While this specific campaign was taking place, the store saw approximately 3.8 new customers join their Wi-Fi network each day.

Location-based analytics truly opens a wealth of possibilities for retailers via the insight and knowledge it presents. Here are just some of the ways that analytical insights can help stores to optimise their customer journeys:

Walk on by

Store location, signage and window displays can have a significant impact on store traffic. With location-based analytics, retailers can determine how many people walk past their stores and determine the ratio of pass-by traffic to those that enter.

Marketers can then evaluate which signs and window displays draw shoppers in most effectively and when armed with this information, displays can be adjusted to maximise traffic.

Never let me go

Some level of basket abandonment is inevitable, but by reviewing in-store analytics, retailers can determine whether this is an issue in their store. And by analysing dwell time in conjunction with other available metrics, retailers will be able to evaluate whether the store could be optimised to avoid purchase abandonment (e.g., are queues too long, are sales staff unable to help with orders or is there insufficient merchandising?).

Talk the talk

Shoppers who receive positive customer service experiences are more likely to make a purchase. Retailers must train staff to effectively interact with customers in-store, enriching their experience and assisting with any queries they may have. Staff need to be strategically focussing on hot areas within the store that consistently see the most customers, or spots that have the longest dwell times to ensure they are best positioned to help convert visits into purchases.  

In the current landscape where multiple channels often come into play during a single customer’s shopping journey, it is more essential than ever before that retailers are doing all they can to better understand their customers and deliver optimum experiences. The insights that in-store analytics provides allows retailers to achieve this and when utilised correctly can drive traffic, conversions as well as overall success. 

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