Behavior Analytics is Business Intelligence for In-Store Customer Experience. it integrates Time & Location Analytics (generated from People Tracking Technologies) with Customer Journey Maps, KPI Frameworks, and Anonymous In-Store Tracking.
6. Ronny Max
Principal, Silicon Waves - CRO for Physical Stores
Agency with 150+ Solution Providers & Retailers
2015 Stanford University Vision Project in Retail
2017 Behavior Analytics Academy | We Grow
"Profit-Pros" in People Tracking Technologies,
Location Analytics & InStore Path to Purchase
About Me
7. Stores are Not Dead
IHL Group0
525
1,050
1,575
2,100
W
arehouse
C
lubs
D
rug
Stores
Superm
arkets
R
estaurants
C
onvienenceM
ass
M
erchents
FastFood
Source: IHL Group
Physical Stores Are Not Dead
NET STORE OPENINGS
2017 NORTH AMERICA
8. Malls are
NOT Dead
“The word 'mall' is a dated word,” says Steven
Lowy, Westfield Co-CEO. In 2007, 42% of sales
at Westfield came from department stores.
Today, it’s only 28%
Strong Gets Stronger
9. 62% 20%49%
T O U C H & F E E L T A K E H O M E N O W H E L P & S E R V I C E
Why Physical Stores?
Reasons for Choosing to Shop in Stores vs. Online (Source: Retail Drive)
10. 5 Elements of Behavior Analytics
Engage
Customers
Call to Action
Conversions
External
Trends
Prevent
Abandons
People
Source: BehaviorAnalytics.Academy
12. POPULAR BOOKS IN BEHAVIOR SCIENCE
BEHAVIOR
SCIENCE
ECONOMICS BUSINESS RETAIL
Daniel Kahneman & Amos
Teversky win Nobel Prize
Economics in 2002
Nir Eyal's Hooked becomes the
New York Times #1 Best Seller,
and is Must Read to Startups
With Why We Buy in 1999, Paco
Underhill challenged retail to be a
scientific profession
HOW BEHAVIORS ENTERED
THE PUBLIC MIND
17. "I very frequently get the question:
‘What's going to change in the next
10 years?’ I almost never get the
question: ‘What’s not going to
change in the next 10 years?’ That
second question is actually the
more important of the two.”
- Jeff Bezos
18. E N G A G EQ U A N T I F Y C U S T O M E R B E H A V I O R S
27. MOVE FROM "WHAT" TO "WHY"
IT'S SUGAR
The "Candy & Sweets" specialty retailer
moved from selling candies to children
to "sweet cravings" for adults
THE OUTCOME
Store Traffic above Average
Increase in Sales Conversion
30% Increase in Revenue
BEFORE AFTER
30. RETAIL INCUBATORS
ADVANCED
ANALYTICS
STORE NEAR ME CONVENIENT TO ME PERSONAL TO ME
Target Marketing Promotions
by Location
Touch Screen & Endless Aisles to
buy anytime, anywhere
Digital Mirrors & Fitting Rooms
for in-store experience
HOW INNOVATIONS POWER
CUSTOMER ENGAGEMENT
33. Measure How Customers Move in
the Store & Demand Rates
L O C A L D E M A N D
E N G A G E T I M E
P A T H A N A L Y S I S
Quantify Sales Opportunities for
Department, Display & Product
Capture the Customer's Level of
Interest with Dwell/Stay Time
34. Online - Offline
Attribution
Free for "YOUR" Personal Information
Opt-In vs. Opt-Out Analytics
Competition = Apple & Facebook & Google...
Respect Your Customers PRIVACY
35. "Each time a consumer is
exposed to an improved
shopping experience, their
expectations are reset to a
higher level of experience."
- Brendan Witcher, Forrester
36. C O N V E R T
R E T A I L E R
C A L L T O
A C T I O N
37. W H A T M O V E S S A L E S ?
WiFi for
Associates
x 7 . 6
X - C h a n n e l
M a r k e t i n g
x 2 . 1
C u s t o m e r
P r e f e r e n c e s
x 2 . 1
X - C h a n n e l
D e m a n d P l a n
x 2 . 0
M o b i l e P O S
i n S t o r e s
x 1 . 9
Source: IHL/NCR
x 1 . 8 L o y a l t y i n
R e a l - T i m e
38. 72% of associates
will stay if given
tools to succeed
Customer Benefits
Product Information
Product Availability
Mobile POS
Associate Benefits
Self Scheduling
Online Training
Task Management
Why WiFi?
Source: Best Buy
42. A FIELD GUIDE TO COLLEGE FASHION
STORE LAYOUT
& OPERATIONS
MERCHANDISING MARKETING PRICING
Includes horizontal vs. vertical
displays, and product position
Includes marketing signs, posts,
and placements
Includes price, fonts, clearance
racks, and display positioning
USING ELEMENTS OF PRODUCT
DESIGN & USER EXPERIENCE IN
PHYSICAL STORES
44. Dynamic
Pricing
Not Low Cost
Not Personalized
Not During the Day
Yes - Change Per Market Demand
Yes - Context to Product Positioning
Store Operations
Digital Shelves & Advanced Analytics
46. Benjamin Moore interviewed customers,
explored other retailers, and tested ideas
in concept store. The result: 18% increased
engagement in Color Studio & 2x sales in
Remodeled Stores
HOW "OLD SCHOOL"
RETAILER STAYS
RELEVANT?
53. Maximize the efficiency of our
(stores) workforce through the
effective use of information
technology
4 8 %
Establish a more data-driven
culture (use information to
create sustainable competitive
advantage)
4 5 %
SOURCE: RSR RESEARCH, FEBRUARY 2018
T O P O P P O R T U N I T I E S F O R I T
S P E N D I N G T O C O N T R I B U T E T O
Y O U R C O M P A N Y ' S S U C C E S S
54. BEHAVIOR ANALYTICS
is the Process to Optimize Profits &
Conversions in Physical Stores
- with Time & Location Analytics, KPI
Customer Frameworks, and In-Store
Path to Purchase
- Ronny Max
Behavior Analytics .Academy
55. S T O R E
D A T A - D R I V E N O P T I M I Z A T I O N
56. FUTURE OF PHYSICAL STORES
UNITED
COMMERCE
INTERNET OF THINGS MACHINE LEARNING AI AUGMENTED REALITY
Capture Sensors & Devices for
InStore Tracking
Consolidate Stores Data for
Advanced Analytics
Give Customers Access Anytime,
Anywhere & Anyway
DESIGN "GROWTH HACKING"
FOR THE CHAOTIC & SOCIAL
PHYSICAL STORES
58. Business Goals: Identify "WHY"
Metrics are Building Blocks
Key Performance Indicators
The North Star is Profit
Research, Test & Optimize
Principles of Behavior Analytics
59. DEMAND
ANALYTICS
CASE STUDY- WEATHER
A retailer learned that fluctuations in
weather (above 5 degrees) decreased
their footfall traffic, yet increased the
sales conversion and revenue by 7%
OPTIMIZE SALES CONVERSION
60. MALL
ANALYTICS
CASE STUDY - PROXIMITY TRAFFIC
A shopping center saw 18% increase
in footfall traffic and leasing revenue
from stores in the vicinity of the new
Apple Store
OPTIMIZE CAPTURE RATE
61. STORE
SEGMENTS
CASE STUDY - LAGGARD STORES
When a retailer compared stores by
segments (i.e. traffic, demographics,
and conversion), they easily identified
laggard stores. In 3 months, they
experienced 10% increase in sales
OPTIMIZE PRODUCT ASSORTMENTS
62. BUYING GROUPS
CASE STUDY - GIRLFRIEND FACTOR
When we designed a framework for
new products, the data pointed to
returned visits when two girlfriends
shopped together. The "Buy 1 Get 1"
promotion increase sales by 18%
OPTIMIZE MARKETING PROMOTIONS
63. LOCAL DEMAND
CASE STUDY - STORE DESIGN
A supermarket redesigned the wine
and beer department after a study of
path analysis and customer flow. The
new design increased annual wine
sales by 24%
OPTIMIZE CUSTOMER FLOW
64. CUSTOMER
ENGAGEMENT
CASE STUDY - IDENTIFY TRENDS
We assigned “Display Engage Levels”
based on Stay Time optimization. The
products below 70% were slated for
clearance. Those above 90% were
labeled as “trendy”.
OPTIMIZE STAY TIME
65. CALL TO ACTION
CONVERSION
CASE STUDY - FITTING ROOMS
A department store assigned CTA
targets to mirrors and calculated
conversions by InStore Brands. The
study resulted in redesign of the
fitting rooms and service.
OPTIMIZE IN-STORE CONVERSIONS
66. FRICTION
POINTS
CASE STUDY - TIME STUDIES
Activity-Based-Costing analysis of
stocking shelves in a supermarket led
to changes in store operations, with
an increase in associates productivity
and customer satisfaction, and the
decrease in payroll costs.
OPTIMIZE TASK MANAGEMENT
67. CUSTOMER
SERVICE
CASE STUDY - LOYALTY PROGRAM
An analysis of customer service
activities led to changes in store
operations and loyalty program, with
direct increase of sales of over 10%
OPTIMIZE SERVICE PRODUCTIVITY
68. PURCHASE
POINTS
CASE STUDY - PRODUCT POSITIONING
A/B testing of 3 product positioning
options led to discoveries that
increased product sales and reduced
marketing promotions
OPTIMIZE PRODUCT POSITIONING