Multinational retail companies raised the bar in competition for local retailers with the decision to open up to the global markets.
Nowadays, the strategies formed by using the right parameters are the basis for competitive and successful companies. In the production sector, issues such as diversity, quality, procurement and lead times have been solved in a fundamental manner. The importance of the product on sale has fallen and the technological strategies such as identifying and fulfilling the correct needs of the customer are in the first place.
Internet sites which we will call online sales have developed at a great pace and have destroyed the borders, allowing the end user to access all kinds of products easily. In online, retails analytics can easily be captured by the companies so that it is possible to reveal the whole customer profile, together with their shopping behavior and their interest in the product.
The digital world, which recognizes the customer and its needs, has created a very large digital advertising sector. In online, ROI calculations and effective use of the budget can be presented to the company management at any time. Therefore, the management, by seeing the benefits received, can easily increase the allocated budgets to the products and services based on high ROIs. As a result, by the help of the right advertising, dramatically increased sales results in more investment and boosts online sales. On the other hand, since it is not possible to calculate ROI, physical stores which we generally will call offline channel, became less popular. Instead of targetted advertisements in online, advertisements are done blindly in offline which generates very low ROI.
In the rise of digital sales, one of the important reason that can be stated is spent time on computers, tablets or mobile phones, but the real reason is that companies allocate more budget to the sales channels that they measure.
Online sales companies do this easily and are able to present the entire buyer profile and behavior analysis, such as traffic, purchasing per visit, the demographics of the shoppers. All these help online retailers to create more effective strategies which lead to increased profit and revenue
As a result, we can say that the most important reason behind the success of the online channel is that they know their customers and their needs.
However, over 90% of sales still come from offline stores and this will continue if the right tools and processes put in place.
In order to grow and be profitable in offline stores, it is essential to know the customers and their needs accurately on time and location basis as it is in online sales. By devising the right strategies based on data, it is possible to increase sales and profitability.
StoreX and DsignX provide the following retail analytics data to offline retailers in real-time.
- Traffic outside of the store and its demographics – Reveals the sales potential
- Traffic capture – Critical for understanding the attractivity of products or shops.
- Time of interest to the product, to a specific store region or to the store window – Helps retailers to reorganize their campaigns and products accordingly
- Demographics of the customers, passing by, entering into the store or watching shop windows – Makes easier to select the right product portfolio to sell
- Customer emotions – Essential for understanding the level of sales execution and performance of staff in the stores
- The visit frequency and unique customer visits – Effective and personalized campaign management
- Gender analysis – Important for segmentation and stock allocations
- Age analysis – Important for segmentation
As a result, the most important strategy for becoming a successful retail company on a global scale is to have strategies based on recognizing the customers and their behaviors. Storex provides all required information base for this to happen.
In retail companies, typical KPIs that need to be followed are as follows:
- Average square meter sales
- Combination ratio based on sales staff
- Store combination rate
- Store average turnover per customer
- Sales conversion rate
- Customer count
but these are not enough to protect and develop the company.
It is necessary to have these figures, however, the follow-up of these figures does not move the company further in the competition.
More retail data as mentioned above should have been obtained by smart processes. Making analysis based on dynamic retail analytics data is compulsory in today’s competition.
Today, companies such as Google, Facebook, Apple, Amazon equipped with artificial intelligence based advanced analytics systems, which help them to analyze all activities relevant to their business. this makes them to become the champions in retail or advertisement.
Now it is possible with Storex to have all these data and manage businesses with more competitive ideas.
- Not only the number of customers entering your store, but also the number of customers who are likely to enter the store, together with the number of customers watching the store and their demographics and attention time.
- Traffic and demographics passing by the store,
- Traffic and demographics captured by the store
- The attractiveness of products, shop windows and store
For example, just by examining the traffic captured by the store in different time-frames with demographic and behavior data, it is possible to analyze the right product portfolio, staff performance, required stock allocation and devise competitive and personalized campaigns.
In the same manner, time, location, and demographics based analysis will help retailers to become more profitable by calculating the required number of staff for their stores in different time frames.
Many more can be analyzed and strategized by management which will make the company more profitable and faster-growing…
With Storex, perhaps it is time for retailers to move to the new business era and become a truly multinational brand …