Shopper traffic data gathered from stores and shopping centres enables functions across a retail business to perform more effectively. Who should be using this valuable source of business intelligence, and what can they hope to gain from it?
Retail data specialist ShopperTrak has launched a new report Data hungry retail: Who needs footfall data and why? which explores each department’s use of footfall data.
Here are the key roles that are increasingly tapping into store footfall data to glean insights about shopper behaviour, and to help with planning and long-term commercial strategy:
Analysing footfall data enables the store operations team to optimise staffing to create optimal customer experiences, known to increase conversions and sales. Traffic data can be used to manage labour scheduling effectively in line with known busy and quiet times in store, for instance weekly Power Hours or Bank Holidays. The data can also be used to reallocate available associates to achieve favourable STAR (Shopper-to-Associate Ratio).
Property and Real Estate
Harnessing the power of people counting data can support data-driven decision-making for retail property and real estate professionals. Key uses include informing negotiations on lease contracts based on historical shopper foot patterns, resulting in increased profitability. Footfall data can be used to identify high-performing shopping zones in malls and shopping centres, to support leasing negotiations with historic and current traffic count-per-square-foot, and to understand how external factors such as Bank Holidays influence shopper behaviour and footfall.
Retail traffic analytics provide marketing departments with visibility into how marketing activity has influenced in-store footfall and the all-important rate of conversion. Tying campaign periods to footfall enables marketers to align draw rate and conversion metrics to promotional periods. This makes it possible to build on successful campaigns that not only attracted traffic but also converted well, and to eliminate less successful in-store campaigns where ‘pass-by traffic’ is too high.
The most successful retail brands tend to be those with meticulously-planned merchandising. Optimising product placements and properly allocating space are essential for increasing conversion rates, and this is where well-informed merchandisers can excel. Traffic data analysis enables merchandisers to develop planograms based on traffic counts and shopper flow patterns.
To find out how to drive retail business performance using traffic data analytics, download ShopperTrak’s free eBook: