How to Optimize Your Department Store by Using Retail Analytics?
The department store offers a pleasurable atmosphere, elaborate service and a wide variety of goods under a single roof to attract customers. These goods include clothing, cosmetics, toys, furniture, sporting goods, foods, books and electronics. The department store is trying to increase the number of exclusive goods that they sell, strategizing effective marketing campaigns to create a strong perception for their brands and stores and, establishing a bond with the customers to increase their market share. The department store is collecting and analyzing data to detect customer behaviors and make promotions for the target customer by using retail analytics solutions.
The retailers can develop a viable customer retention strategy in the department store to remain their existence in a competitive environment. The store needs to identify the most efficient ways to build and maintain a strong relationship with its customers. The cloud, mobility, social media and analytics-based solutions provide data for the department store to enhance customer experience and gain loyal customers. Retail analytics provide new metrics about inventory levels, consumer demand, customer behavior, etc. for
- Marketing & Pricing
- Staff Management
- Checkout Line Optimization
- Stock Optimization
- SKU Range Management
- Store Space Optimization
Retail analytics provides department store a comprehensive and essential data and knowledge about customer preferences. This data is used to enhance the customer experience to gain loyal customers.
The prediction of the customer preferences by using retail analytics solutions helps the retailer to set a course for better marketing strategy, optimize store space, manage SKU range, optimize stock, optimize check-out line and manage staff. The data that is collected by using retail analytics solutions give insight to the retailers about customer behaviors based on specific areas. It’s easier to give the customer the most ideal customer journey through their visit to the department store by setting the design of your store, product layout and promotions depending on the customer preferences. Moreover; counting the number of visitors in the department store, discovering the yearly, monthly, weekly, daily and hourly traffic of the department store, calculating the conversion rate and optimum size of the shopping chart is possible by using retail analytics solutions. These data are so crucial to increase the market share of the department store.
Marketing & Pricing
An effective marketing strategy is so crucial for the department store to increase the market share. The retail analytics helps stores to observe the effects of the promotions and increase the effectiveness of the marketing strategy by using collected data. Additionally, it’s possible to analyze the effectiveness of the valuable areas in the store such as; promotion area, gondola, check-point area, etc. Furthermore, retail analytics solutions can also be used in pricing strategy since it’s possible to observe reactions due to the changing prices by calculating spent time and the number of visitors in the specific area. The information on the valuable areas can also be used in the determination of the prices of rental areas for the brands and rental service areas. The pricing strategy can be determined based on the densities of the areas. Moreover, it’s also possible to determine the number of personal and optimize staff management in rental areas by measuring the number of visitors and service time.
You can learn about the most visited and most time spent areas in your department store. Having a knowledge of the rush hours and the number of visitors in the department store helps you to optimize your staff management and personnel shifting to not to lose the interest of your shopper due to long waiting time. Efficient staff management prevents long waiting times especially in cash points to decrease the abandonment rate. Thus, you don’t lose sales opportunities in the department store and maximize customer satisfaction.
Checkout Line Optimization
Through monitoring waiting times and densities in the checkout area, store managers are notified instantly and automatically when the number of people in the queue or waiting time exceeds the level. The retail analytics can also give you insight into the preference and efficiency of the usage of the multiple-server queueing system or single server queueing system.
Optimizing stock is so important in the department store since there is a wide range of merchandise from various brands. The retail analytics helps the store in stock optimization. If you learn about the dead-points and busy areas in your department store, you can optimize your store layout, prevent the accumulation of stock and out of stock problems as well.
SKU Range Management
There is a wide range of products at the department store. Determining the SKU range of the merchandise has vital importance in the department store. An optimum SKU range also optimizes the stock. You can determine the optimum product range by collecting the data about customer behavior. The retail analytics calculate the spent time in a specific area. You can analyze if the range is too wide by observing spent time in the area. So, you can prevent problems such as not being able to find what the customer is looking for.
Store Space Optimization
The retail analytics give heat map solutions as well. The heat maps can be used in detecting the most visited areas in the department store and changing the store layout to increase the potential of the dead-ends in store. Furthermore, you can compare different areas in your store by using A/B testing. So that, you will be able to observe the areas in your department store that has a higher performance and take action to reach the potential sales of the areas that have low performance.
The department store is using technology such as retail analytics to improve customer service. Following the technology is the only way to keep pace with the customer demand and increase the market share.
Did you check our retail analytics solution? You can start using Udentify that analyzes the costumers’ behaviors at the brick and mortar shops. Udentify provides local conversion rate, head counting, heat maps, and order analysis. Thanks to the image processing technology, it can follow the customers anonymously, with which it gives meaning to the data that is gathered from the tracking by converting them to statistical models. It enables company managers to take data-oriented decisions by its management interface.