RetailerProfileThecasestudyisforaleadingmobileretailerwhosellsmobilephonesandelectronics,aswellasmobile,broadbandandfinancialservices.TheCompanyhasover3,000storesinCISandEE,onhighstreets,retailparksandshoppingmalls,withstoreformatsrangingfrom50squaremetersto250squaremetersforflagshipstores..ChallengesAfterscopingouttheretailer’sideasforneededoperationalimprovements,thefollowinghighpriorityissueswereidentified:
• Seasonalmerchandisingplanswithmonthlychangesaremadewithouttrackingeffectiveness
• Lowcrossshoppingisbelievedtooccurbetweenassociatedzones
• Inadequateresourcedemandplanningandschedulingimpactsoperationalcostsandcustomerservices
• Ineffectiveloyaltyprogram,lowcustomerregistrationandinterestknowledgemeansretentiontacticsaredifficulttoimplement
• Ineffectiveloyaltyprogram,lowcustomerregistrationandinterestknowledgemeansretentiontacticsaredifficulttoimplement
• Highchurnrateinspecificcustomersegmentsthatareofhighvaluemeanscorecustomerbaseismigratingtocompetitorstores
• Massmarketingtactics,withoutpersonalizationandtargetedmessagingresultsinlowconversionratesonpromoitems.
SolutionThesolutioninvolvedinstallingSMIsensor-routersin15storestotest,atfirstphase,howSMIcangiveinsightintoshopperbehaviorinordertoimprovetheoperationandthecustomerexperience.ThesecondphaseincludedtheimplementationoftheSMIOmniChannelsolutioninordertoregistercustomersonthenetworkformoreeffectiveCRMandmarketingbefore,duringandaftertheshoppingjourney.Thesolutiondeploymenttookplaceover3monthswithagreeduponobjectiveswiththeclientintheareasofOperations,Merchandising,andMarketing.MerchandisingandShopperJourneyAnalyticsgoals
• Customerandstorecentricplanogramsthatareadaptedtoshoppinginterests
• Analyzinghowcurrentandfutureplanogramsaredrivingtrafficthroughthestoreintheoptimalmanner–measureshoppers/sqmandreturnonspaceforzones
• Pathflowanalyticsandheatmapsonshoppingactivityatzonelevelatvariousdaysandstoretimes
• Improvingserviceareassuchascashlanesthatbecomecongestedandhavelongqueuesatpeakdemandtimes
• Identifyingzones(departments)whichhavehigh%ofcustomerswholeftthestorewithoutbuying
• Discovertrafficandproductinterestpatternsforcreatingattitudinalcustomersegmentation
• Identifyzonerelationshipsandzonesthatareshoppedbycustomersegmentsbeforeandaftervisitingotherzones
CRMandOmniChannelMarketinggoals
• RegisteringcustomersviaFreeWIFIaccessanddataminingcustomerprofileswithtrafficpatternsandpurchasesmade(customer’smobileMACaddresslinkedtoloyaltyID)
• Providestoreemployeesinformationoncross-sellingopportunitiesforindividual
AboutSMI’sCRMOmni-channelsolutionforbricksandmortarstores Significantfinancialgainsfromimprovedmarketing,CRMandstoreoperationsStoresimplementingShareMyInsight’sin-storetrackingandmarketingsolutionshavereapedfastgains:9%higherconversionsonmarketingpromos,12%increaseoncross-selling,6%morerepeatvisitsandmore.RetailerswhohaveengagedCPGsforpersonalizedcampaignmessagesthatconnectabrandtoindividualconsumers,haverealizedmorethan10XrevenuesfromCPGsponsoredadsovertheSMIsolutioncost.
• Increasethenumberofpersonalinteractionsbetweenemployeesandcustomers
• In-storetrackingalertsmanagertocustomersshowroominginthestore(lookingonlineonspecifiedsites)
• Communicationstargetedtosegmentswithahigh%ofprobableresponserate
• Omni-channel,personalizedads,andpromotionofferstocustomersduringtheshoppingjourneyversusmassmarketingcampaigns
• Customerprovidedwithwelcometextandsplashpagewithpersonalizedoffer,announcementwhenloggingintofreeWifi
BenefitsandForecastedGains• Engineeredstorelayoutplanstodrivetraffictoselectedunderperformingzones(nonvisitedshoppingareas)andincreasedvisitsby3%
• Improvedzone(dept.)ReturnonSpacebyupto2.5%withincreasedshoppingtime
• Betterresourceplanningwithlowercoststoensureoptimalnumberofsalesassistantsontheflooratdifferenttimes
• Increasedshoppervisitstospecificzonestargetedduringpromcampaignsbyupto50%
• Increasedsalesconversionsonpromoitemsbyover25%
• Increasedvisitrepeatrate,shoppingfrequencyby1.5%ontargetedsegments
• Decreasedbouncerate(zonesshoppedbutnotpurchased)by2%intargetedzones
• Increasedcross-shoppingbetweenzoneswithbundledpromooffersby8-15%
• Increasednumberofinteractionsbetweenstorepersonnelandcustomersby15%