Humanlink Finland OyVMT

Optimizing customerflow gives higherrevenue and improvedcustomer satisfaction !

Mission: Go to H&M and buy a pair of jeans

ManWomen

Man

Time: 6 min.

Cost:199,-

Women

Time: 3 hr. 26 min.

Cost:4 398,-

Topics to be covered

• Why understand customer movement

• Customer cases: Gas stations Gas stations

Telecom concept store

Pharmacies

Convenient store

Consumer electronics

• Customer Tracking Technology

Why understand customer movements ?

• Marketing budget hits the cealing

• There will be investments in new • There will be investments in new information channels.

• Influence directly on customers buying behaviour

• Find the cold and warm spots in a store

• Competition regarding product placing increases

Why understand customer movements ?

• Put campaign areas and impuls products where the customers are

• Get to know what the customers see and what they react to

• Customers demand more modern design

• Improve customer satisfaction

How to get needed information?

• Do exit interviews of the customers regularly

• Use customer counters

• Use customer tracking• Use customer tracking

Best of all – use a combination of the three.

Customer TrackingTechnology

• We use a wireless digital pen with a built-in camera that takes more than 120 pictures per second in combination with a intelligent sheet of paper.”The Anoto pattern”

• Printing this dot pattern on the paper makes it possible for the digital pen’s makes it possible for the digital pen’s built-in camera to detect pen strokes and record handwriting that can then be stored and sent digitally.

• With this tool the customer’s path through the store is registered. When the customer tracking period is over, results are reported and analyzed.

• The customer path can be viewed online in realtime in our “Tracking portal”

Customer cases

• Gas stations

• Telecom Concept Store

• Pharmacies• Pharmacies

• Convenient store

• Consumer electronics

Case – Gas station

• Background and goals Looking at:

How customers move

Where do the customers stop Where do the customers stop

Do the customers purchase anything

This will contribute to a design and actions so:

The customers stay longer in the shop

The customers could purchase more items

The customer will choose this station also at their next visit.

When redesigning the station valuable information is gathered.

Gas stationproject

• The station had 2 entrances

• 3 days with observations

• 140 observations

• Average stops pr customer is 1,65• Average stops pr customer is 1,65

• Average time in station is 1 min and 6 sec

• 80% choose entrance close to the cashier

• Customers walk in and out - no walk around

• 80% ”looses” the possibility to buy impulse

productsCashier

Gas stationEasy changes

• From two to one entrances

• 80% more customers will pass campaign

areas/impulse products.

In

Campaign area/Impuls products

areas/impulse products.

Result

• Time in shop more than doubled

• Revenue increased by almost 30%

Out

Case – Telecom Concept store

• Background and goals Looking at:

How customers move?

Where do the customers stop? Where do the customers stop?

Do the customers purchase anything?

Do the customers use “Self-Service” areas?

Does this “concept store” work according to goals?

This will give:

Valuable information in where to place campaign areas and cashier

Valuable information when designing next shop

Telecom concept storePerceived customer movements

• Traditional to ”the right” movement.

• The customer should pick products

themselves

• Campaign area easy to reach

Productarea/Self service shelves

Campaign

• Campaign area easy to reach

• Easy to move around

Productarea/Self service shelves

Telecom concept store Actual customer movements

• Several barriers

• Behind the cashier phenomena

• The perceived pathway is to narrow.• The perceived pathway is to narrow.

• Campaign areas difficult to reach

Telecom concept store Change customer movements

• Move the cashier

• Move campaign area to achieve better effect of

campaign products

• Get more open areas• Get more open areas

• Move perceived barriers

• Get full effect of normal ”to the right” movements

and get full effect of all ”Self-Service” areas.

Case – Pharmacies

• Background and goals The pharmacy chain wish to complete customer flow analysis in some of their pharmacies

to learn more about customer behavior in their pharmacies, and use this knowledge to prepare pharmacists with regard to optimal customer flow, the trade position, and communication and customer care.

The result will be used for input and discussion points in the store layout and marketing division. The results will be documented in a "best practice" manual for use by individual pharmacies.

Pharmacies

• Observation areas chosen based on the needs to understand the customers movement regarding staffed service areas and areas where the customer choose products themself.

• 600 observations in 6 different pharmacies in 3 • 600 observations in 6 different pharmacies in 3 days.

• We were looking for all areas for improvements

• Small changes gave huge results

Cold zones Hot zones

Gerd Byremoen, Marketing manager,

Vitusapotek Norway (Celesio Norway)

We increased sales by 36% in one month in one of

our pilot study shops. After having used the analysis our pilot study shops. After having used the analysis

from the customer flow project, we changed the

furnishing and product placement and we made the

shop more tempting for the customers

Case – Convenient store

• Background and goals

The largest chain for Video/Movie rental (450 stores in Norway) experience

that they are loosing customer to new methods like video on demand,

streaming and internet stores.streaming and internet stores.

They wanted to see if they changed the customer flow in the store helped in

order to get higher impulse sales.

In understanding the customer flow the chain will use the result as discussion

when designing new stores. The results will be documented in a "best

practice" manual for use by individual stores.

Convenient store Change customer movements

• All customers moved to the right

• Poor circulation in store

• Left part of store is a cold zone

• Changed floor layout

• Changed categorizing

• This totaly changed the customer flow

• Increased sales by 11%

• Exit interviews showed more satisfied

customers

• Left part of store is a cold zone

Case – Consumer Electronics

• Reason for customer tracking Quality check of new store

Do the new layout work as planned?

Will open layout reduce or increase circulation?

Will customers turn right as planned?

Find Hot & cold areas

Typical layout from the 1990s

Old New

Consumer ElectronicsResults

• Time in store is significantly longer in the new layout. The customers are

in average 15.5 minutes versus about 10 minutes in the old layout.

• Customers stop in average in twice as many zones in the new layout

• Being able to move freely around the room and not be bound by forced • Being able to move freely around the room and not be bound by forced

walking path increases the average time the customer is in the shop and

thus the likelihood of increased revenues.

• We also see that there are far fewer cold zones in the new store - Better

circulation by "open shop".

• Customer satisfaction raised by more than 20%

Lets look at the technology

What does a better customer flow give you?

• Customers will stay longer in the store

• Customers will buy more

• Customer satisfaction improves• Customer satisfaction improves

• Customers enjoy being in the store

• Customers will come back

• Customers will become a good reference

….which again will give you

improved revenue and improved improved revenue and improved

customer satisfaction….

To understand customer movement, is to

understand what happens next ?

Thank you

Any questions ?