Brick and Mortar Stores Use Customer Data to Provide a Better Experience
In the information age, we have the ability to easily learn everything about everyone. Remember that time you thought that Chinese takeout sounded good and then an ad for a local Chinese restaurant showed up on Facebook less than 2 minutes later? Can Mark Zuckerberg read your mind, or are the algorithms just so good that they already know what you’re craving for dinner tonight? They’ll never tell.
But you know that whether you’re browsing the web, telling a friend, or even just thinking about it, companies are ready to pounce to entice you with goods and services that seem like a good fit. Retailers use technology to learn more about their customers, predict their needs, and be ready to provide the right options.
In the last installment of our retail experience series, we discussed the ways in which retailers leverage mobile applications to enhance the customer experience. Mobile payment, custom reward apps, and beacons are just a few of the potential ways in which retailers can quickly collect information about consumers. But just because you’ve collected the information doesn’t mean you have what you need to analyze the data and be better prepared to deliver the right products and services. That’s where great software comes in.
Let’s dive into the technologies that companies rely on today to provide them with customer insight.
3 Ways Retailers Use Tech to Harness the Power of Data
Wi-Fi Analytics
Does your brick and mortar location offer free Wi-Fi to customers? If not, you may want to reconsider. While less expensive solutions are available, they can’t compete with the in-store analytics Wi-Fi makes available to retailers. Not only that, but it’s highly likely that most technology used by your employees relies on Wi-Fi, so it’s already deployed in your store.
So, what can Wi-Fi tell you? First of all, you can gather a lot of information that reveals much about the physicality of your store. In other words, you can easily track how many people enter, how long they stay, the paths they take, when they leave, and which times are the busiest.
Knowing where customers spend their time in stores is great – you can see what they’re most interested in. But the key to Wi-Fi analytics comes in when you consider the places no one spends their time. Are customers missing something of interest because it’s too far out of the way? Maybe your target audience doesn’t care for what you’ve stocked in that spot. Now you can use this information to change the store layout in a way that makes sense for your customers.
Wi-Fi analytics can further allow retailers to personalize the shopping experience. If I find that Sarah has been comparing prices online before purchasing a vacuum cleaner, when she enters the store and pulls up her browser, I can display an ad that reminds her that our store offers a price match. I can also include offers for deals on accessories for the vacuum, or other relevant products like odor neutralizer or a floor mop. If I see that one brand is most popular among customers in a similar demographic to Sarah, I might want to advertise for other products from that same brand.
This technology allows retailers to keep track of customers that are new, returning, or haven’t been in for a while, and then respond accordingly. For instance, I might grant VIP access for customers that come in often, allowing them special perks. People love to be part of something exclusive. I could also send a coupon or targeted ads to customers who haven’t shopped in a while to draw them back. And since I’ve already updated my store layout based on the data that I’ve collected with Wi-Fi analytics, I know that I have a good chance they will find and purchase additional items they like while they’re here!
Wearables
Wearables are personal, often worn as an additional accessory and can even be a fashion statement. They’re also far more convenient to look at. Have you ever been with someone who glances at their Apple watch and says something like “Excuse me, I have to take this call”? Maybe their phone is on silent, or maybe it’s buried in their coat pocket and they’re wearing mittens. Either way, the odds are far better that customers are going to check a wearable device – you don’t want to miss out on the opportunity to remind them of your brand.
Even if you’re unfamiliar with wearable technology, you probably know someone that tracks their daily steps with a Fitbit or something similar. Just like it sounds, wearable technology is something that users wear that typically collects personal data such as fitness and location information. And should that person elect to share that data, both retailers and customers have a lot to gain.
If Sarah takes a ballet class twice a week, brands could conclude that she would need a new pair of dance shoes after a while, might want to see promotions for a local barre fitness class, is looking for quality dance tights that won’t tear, or would be interested in streaming movies like Black Swan. They can then use all of this information to target Sarah with advertisements that would be appropriate for her interests. Sarah now loves your brand because you always seem to anticipate her needs and don’t inundate her with stuff she probably doesn’t care about.
Much like a beacon, retailers can also use location information to ping ads or promotions to wearable technology when a customer is in the vicinity. For instance, if I learn that Sarah walks past my bike store every afternoon on her way to pick up her son from preschool, I could use this information to entice her to stop in. And if I also learn that the ballet studio that she goes to is a long walk but a nice bike ride from her home, I now have a great angle to use.
Sarah is excited; she hasn’t thought of getting a bike until now, but that would be perfect to get to all of the local places she loves, giving her some more time to spend with her son in the evenings. Once she buys that bike, you can probably deduce that she’ll need to service it every so often to keep it running. You can offer those services and provide reminders and rewards that a busy mom will appreciate. Now you’ve become so much more than a store – you’re an integral part of Sarah’s life that can provide her with more of what she values.
IoT
The Internet of Things (IoT) is, at this point, pretty much the world of electronics around us. Any device that is ‘smart’ enough to communicate with others over a network is part of the IoT. This technology allows retailers to collect immense amounts of data without human involvement. Much of the technology that we’ve talked about can be connected to the internet of things individually, but the power of the sum of these devices is what really puts retailers at an advantage.
Connectivity between devices and systems can help retailers recognize patterns in customer behavior and more accurately predict their needs. For example, retailers can identify behaviors that indicate a customer is frustrated and take immediate steps to provide appropriate customer service. Store associates can also intercept customers at the right times to avoid a potential issue, like diverting attention away from an item that is sold out.
Essentially, the IoT gives retailers the opportunity to be proactive when it comes to serving their customers. In fact, this technology allows for great customer service even after that shopper has left your store. Sensors embedded into the items customers take home can transmit data to retail companies to alert them of potential problems.
For instance, if you run an office supply store and sell Sarah a printer, you can keep track of how well it’s working. If Sarah uses her printer frequently and data indicates that she needs a replacement part soon, you can reach out to her before the printer can no longer function. Not only do you stand a good chance of getting repeat business in the form of Sarah ordering a new part, but you’ve most likely ensured a positive customer experience for her. You save Sarah the frustration of being without a printer while she waits for that new part because you were able to identify the issue while Sarah was still able to use the printer.
Using Data the Right Way
Collecting customer data via available technologies is a great way to learn more about your customers. The more you know about the people that shop in your store, the easier it is to improve the customer experience. However, just gathering the data isn’t enough. In order to understand what your customers value and identify opportunities to enhance their in-store experience, retailers need to ensure that they are taking the appropriate steps to use the data they collect.
First and foremost, retailers need to be sure that they’re collecting the right data. What is the right data? That depends on what you want to learn. Carefully consider the questions that you want your data answer before you start. Be sure that you’ll have a large enough sample size and the appropriate target audience. For instance, if you’re looking to see how a new product appeals to an elderly population, you can’t hope to answer that question if very few elderly customers shop in your store. It’s also important that these questions make sense in relation to your goals. If my brand is centered around a younger, active clientele, then it’s probably best to focus on their reception of this new product instead.
Second, take the opportunity to identify gaps in your in-store experience. Take a closer look at not only the data that you have, but the data that is missing. For example, if you have very little data on customer interaction with customer service personnel, it might be a red flag. What is the reason that your customers don’t interact with your store employees? Is it because your new mobile app uses AI to help customers in a way that works for them? Perhaps that’s not the case, and you need to take steps to ensure that employees are made available to help customers as needed.
Third, be sure that you’re using the data to inform decisions and implement changes. You can collect the data and even analyze it, but it’s no good to you to have the knowledge and not do something about it. If you’re unsure how to proceed or even how to really gain knowledge from the data you collect, it’s worth it to seek expert assistance. Other retails are making their data work for them, meaning you’ll need to do the same if you want to keep up.
Now that we’ve explored the analytical side of providing an excellent customer experience, we’ll discuss the opposite – how retailers tap into emotion to drive foot traffic to their brick and mortar locations. See you next time for more on the ways that brick and mortar retailers are competing with their online counterparts.