How to Analyze In-Store Customer Traffic and Get Results from the Data
Digitizing stores unites online and offline sales by breaking down the barrier between them. Retailers are becoming more aware of how the benefits of digitizing their stores help them keep a competitive edge over the growing e-commerce sector. In the online world you can keep track of how many people visit a website, how long they spend browsing and if they finally buy. Why not do this in a physical store?
The main challenge facing retailers is how to identify the percentage of people who enter the store and make a purchase out of the total number of people passing by the store window. Businesses can incentivize customers to enter the store and optimize the space inside to make it more attractive, inspire customers to buy and improve their experience. Even when a customer enters a store and leaves without making a purchase, the omnichannel model can connect that visit to a previous online purchase.
Some of the KPIs used to understand customer traffic in a store and visitor conversion are:
- Total passersby: Total number of devices detected inside and outside the store within a selected time period (sum of all days). Includes visitors and non-visitors.
- Total devices: Total number of times devices were detected inside and outside the store within a selected time period.
- Total visitors: Total number of devices detected inside the store within a selected time period (sum of the daily number).
- Total visits: Total number of times devices were detected in the store in a selected time period.
- Visitor recurrence: Average number of times a device was detected in the store during a selected time period.
- Conversion rate: Percentage of total visitors out of the total number of passersby. This is an indicator of how effective the store is at attracting passersby.
- Bounce rate: Percentage of devices detected in the store for less than a predefined time in a selected time period.
Retailers must gather information about how people move in the store, through which sections, the number of visitors, new customers and recurring customers, as well as other valuable information for business development. This allows them to understand their customers better, optimize schedules and staffing to improve service at peak hours, determine customer engagement and improve the shopping experience.
To collect this information, Beabloo presents their Traffic Analytics tool, which measures customer footfall in the store, the number of passersby outside the store, and the distribution of new and recurring customers that visit the store during a given period of time. This solution uses a combination of Wi-Fi and Video Analytics.
For Video Analytics, the cameras installed in the store’s ceiling measure how many people pass in front of the entrance and identify the footfall direction to distinguish between people entering and exiting the store. Wi-Fi Analytics consists of Wi-Fi sensors installed in the store that track Wi-Fi-enabled devices and detect their location to estimate traffic inside and outside the measured area. The same technology can be used to measure the number of new and recurring visitors inside and outside the store.
Traffic Analytics is a cloud-based solution that displays results on a dashboard which updates every 24 hours. It offers multiple benefits to retailers, including optimizing store operations by knowing when the peak hours are and the amount of resources necessary for different times of day or during the week. It also can be advantageous for brands since it breaks down reliable metrics for optimizing store performance and adjusting marketing campaigns to increase the conversion rate. Traffic Analytics lets brands analyze different stores to compare how well their campaigns are working and identify the best methods for each store, keeping in mind that every store is different.
The Traffic Analytics solution helps brands grow using information about the most important element of any business: the customers. Physical stores can now do what online stores can by understanding how customers interact with the physical space. It lets them objectively measure trends and improve the performance of in-store campaigns in this rapidly growing and competitive commercial environment.