RetailFlux Flow BOOKSTORE CASE

Transcription

1 RetailFlux Flow BOOKSTORE CASE

2 Optimize your floor plan! RetailFlux Flow is an advanced analytic software that visualize shopper flow on the floor plan of your store. RetailFlux Flow track every shopper in the store and analyse their movements and behaviour. With RetailFlux Flow you can find out: Where does you customer go? Where and for how long does you customer stops?

3 How to optimize zones in your store? In general: Get an overview, optimize and improve on cold zones ENTRANCE ZONE COLD SPOTS - First Impressions - Increase their availability - Get customers in shopping - Make them more spacious mood - Draw customers into the store - Sell UP CHECK-OUT AREA WARM SPOTS - A-products at prime location Warm Spot Cold Spot - Sell whatever - SKU & Shelf Optimization Cold Spot Exit Entrance

4 PURPOSE INCREASE SALES Example case: One of our clients had some problems with customer flow in their stores. Much due to too many items, cramped rooms and a non-optimized store solution. We optimized the store design to draw the customers in and get them to visit a larger part of the store. Since a larger part of the store was visited, customers were also aware of a larger share of the goods. BEFORE The optimized store design gave the store an increase in sales of well over 28%. AFTER Sales: + 28% ENTRANCE ENTRANCE

5 Technical terms Impression Rate IMPRESSIONS = IMPRESSION RATE% PASSERSBY Impression rate indicates number of people stopping for +5 seconds in relation to people walking within the zone. Zone corresponds to area covered by particular camera or arbitrary area defined by user. Passerby when a customer moves from one defined zone to another, it is counted as one (1) Passerby. Impression whenever a customer stands still within a zone for more than five (5) seconds, it is counted as an Impression. Dwell Total total amount of time that customer spends before moving. Dwell Average average amount of time that customer stands still before moving

6 Customer flow report BOOKSTORE CASE

7 PURPOSE INCREASE SALES Measure Make changes Analyse

8 Bookstore optimization process Stage I [ ] RetailFlux Flow installation [ ] Measuring customer flow & formulating hypotheses [ ] Analysing & hypothesis verification [ ] Making changes in the bookstore Stage II [ ] Measuring customer flow & formulating hypotheses [ ] Analysing & hypothesis verification [ ] Making changes in the bookstore Stage III [ ] Measuring customer flow & formulating hypotheses [ ] Analysing & hypothesis verification [ ] Optimizing remaining aspects if necessary [..] Developing long term strategy for a bookstore in terms of customer flow

9 STAGE I - Big Picture Where do the customers go? Customers after entering bookstore go further inside, mostly turning left. Passerby heatmap for period Customers don t visit coffee corner. They also don t reach rear of the bookstore, going rather to the right. Customers don t move between racks in the middle. They also don t move a lot in the leftbottom. Source: RetailFlux platform, StoreFlux view. Black arrows show where customers usually go Red ellipses show which areas of the bookstore are hardly visited

10 STAGE I - Big Picture Where do the customers stop? There were 13 areas recognised in the bookstore, in which customers often stop. Impressions heatmap for period Areas 1; 2; 3 and 9 were especially often visited. Most customers stop next to the entrance, beside cashier as well as in areas number 4 & 9. Source: RetailFlux platform, StoreFlux view. Brown ellipses show in which areas of the bookstore customers often stop, assigned numbers 1-13

11 STAGE I - Big Picture Initial hypothesis While measuring customer flow we came up with three (3) hypothesis: Passerby heatmap for period There are to many racks and shelfs in the bookstore narrow passages, no space for comfortable shopping. 2. Rear of the bookstore is hard to access. 3. Cash desk is blocking the way into the bookstore. Source: RetailFlux platform, StoreFlux view. Black arrows show where customers usually go Red ellipses show which areas of the bookstore are hardly visited

12 STAGE I Big Picture Comparative analysis PASSERBY Although people stop in areas: 5; 6; 7 and 8 that are located at the end of the bookstore, only few people get there (little passerby's). There is very few customers passing through racks in the middle. Customers have to go around the cash desk to get insight of the bookstore. IMPRESSIONS There are quite a lot people stopping in areas 9 & 12 but only few passerby's.

13 STAGE I Big Picture Hypothesis verification Hypothesis 1 There are to many racks and shelfs in the bookstore narrow passages, no space for comfortable shopping. <<TRUE>> Example of blocked area in Zone3. Passerby view shows that people mainly move only in areas where there is enough space. Some areas in the bookstore are blocked, making it difficult for customers to access them. Source: RetailFlux platform, Heatmap view.

14 STAGE I Big Picture Hypothesis verification Hypothesis 2 Rear of the bookstore is hard to access. <<TRUE>> Hard to reach rear of the bookstore (Zone2). Passerby view shows that only few people manage to get to the rear of bookstore. Impression view shows that there are some interesting products, because if customer manages to get to end of the bookstore, there is high probability that he will stop (POTENTIAL to grow). Source: RetailFlux platform, Heatmap view.

15 STAGE I Big Picture Hypothesis verification Hypothesis 3 Cash desk is blocking the way into the bookstore. <<TRUE>> Cash desk blocking access to bookstore (Zone4). Passerby view shows that customers after entering bookstore have to go around the cash desk in order to go deeper into the bookstore. Massive POTENTIAL to improve flow in the bookstore. Source: RetailFlux platform, Heatmap view.

16 STAGE I Zone activity First insight Optimization process in the bookstore is divided into three (3) stages. Estimation for location of zones (1-7) on bookstore floor plan. During Stage I and Stage II we decided to focus on the big picture and not analyse zones in details. First insight into zones has been provided. Source: RetailFlux platform, StoreFlux view.

17 STAGE I Zone activity First insight Estimation for location of zones (1-7) on bookstore floor plan. Source: RetailFlux platform, StoreFlux view.

18 STAGE I Zone activity Camera view for particular zones Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7

19 STAGE I Zone activity Comparing zones in customer flow From the chart on the right we can see that most customers stop in Zone7 in contradiction to Zone1, which has the lowest Impression rate. Dwell Time average has the lowest value in Zone3 and highest in Zone2. No many customers is stopping in Zone1 (low Impression rate) but if they do, they stop for a long time (high Dwell avg.). Many customers stop in Zone7 but even if they do, they don t stand there for a long period of time. 80% 70% 60% 50% 40% 30% 20% 10% 0% Impression rate (%) and Dwell average (seconds) for Zone1 Zone2 Zone3 Zone4 Zone5 Zone6 Zone7 Dwell Average Impression rate

20 STAGE I Zone activity Comparing zones in customer flow The highest number of passerby's was registered in Zone6. This area, especially its bottom part was used as a main road to the rear-bottom part of the bookstore. Zone7 was an area with highest impression rate. This zone had also relatively high number of passerby's. Impression rate was the variable fluctuating among different zones. The difference for impression rate between Zone1 and Zone7 is over 40%. 80% 70% 60% 50% 40% 30% 20% 10% 0% Impression rate (%) and number of Passerby's for Zone1 Zone2 Zone3 Zone4 Zone5 Zone6 Zone7 Passersbys Impression rate

21 STAGE I Making changes Expanding bookstore & improving its layout After measuring customer flow and then analysing it we confirmed the truth of three hypothesis: 1. There are to many racks and shelfs in the bookstore narrow passages, no space for comfortable shopping. 2. Rear of the bookstore is hard to access. 3. Cash desk is blocking the way into the bookstore.

22 STAGE I Making changes Expanding bookstore & improving its layout On there were 40m2 added to the bookstore from the unused back office as well as rear of the bookstore was made more spacious. BEFORE AFTER

23 STAGE I Making changes Expanding bookstore & improving its layout Rear of the bookstore was made more spacious. Many of racks and stands were moved to the new bookstore space. Now area is much better accessible. BEFORE AFTER

24 Further Plan of Bookstore Optimization Process Furthermore, management of the bookstore already decided that they will move cash desk to the new location after finishing current measurement (STAGE II). It will significantly improve flow, which will also contribute to higher sales.

25 Further Plan of Bookstore Optimization Process Stage II [ ] Measuring customer flow & formulating hypotheses [ ] Analysing & hypothesis verification [ ] Making changes in the bookstore Stage III [ ] Measuring customer flow & formulating hypotheses [ ] Analysing & hypothesis verification [ ] Optimizing remaining aspects if necessary [..] Developing long term strategy for a bookstore in terms of customer flow

26 SUMMARY During STAGE I of bookstore optimization process several areas of improvement were discovered. After consideration two main steps were taken: Removing some of the racks in the rear of the bookstore, which resulted in increasing its accessibility Adapting unused back office for extra 40m2 of sales space Further actions, including moving cash desk will be taken in further stages of optimization.