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ShopperTrak EMEA Customer Newsletter – Summer 2013

9/3/2011 11:38:05 AM

At ShopperTrak, we are always working on developing our services to our clients and at the 2013 Users Group we will be launching our new reporting system. The new portal will make it easy to find answers quickly to your most pressing questions regarding marketing and operations.

In this issue of our EMEA Newsletter, you will also find:

Would you like to join our 2013 Users Group?
Meet our Finance Team!
Other news and blog postings

We will be sending our EMEA newsletter seasonally to keep you up to date with industry news, useful tips and important ShopperTrak information that will help you make the most out of your traffic programme. We hope you will enjoy reading our newsletter.

Download the Newsletter Now!

Retail Technologies Exposed

5/8/2013 10:39:56 AM

New technologies to support omni-channel retailing and increase sales are under the spotlight in Europe.

- This article, by Fiona Briggs, appeared in the May 2013 issue of NACS Magazine -

View the article now!

The Integrated Retailer: Technology is the source of success for retailers

4/25/2013 1:28:30 PM

- This article originally appeared on The Integrated Retailer on 16 April 2013. -

Todd Starcevich, CEO of Europe and Middle East for ShopperTrak, discusses why the physical store is still at the heart of the customer experience.

Technology is still vital to the success of retailers, judging by the sheer depth and breadth of solutions on display at the Retail Business Technology Expo this year. Briefing sessions covered everything from mobile and ecommerce to merchandising while multi and omni-channel continued to be the buzzwords - with vendors offering a myriad of solutions to integrate these channels effectively.

However while mobiles, tablets and online shopping have undoubtedly changed the face of retail, the physical store is still at the heart of the customer experience – and is the touchpoint at which the customer really gets to know the brand. Online is set to become a significant part of fine chocolate retailer Godiva’s strategy for 2013 for example, but its stores remain an experiential activity, where customers get to see, touch and taste the chocolates before making a purchase. Engendering loyalty in store should pay dividends for its push into online.

This ability to engage customers in-store is vital, not just for the future of the high street but also for retailers looking to close the loop on their omni-channel strategy. Ask most retailers if they know how many people visited their website and they will probably have a reasonably detailed grasp of who visited, what they did while on the site, and if the visitor became a buyer. Ask them how many people visited their stores and the insight becomes less accurate. But, knowing where and when customers are in your store is a crucial tool for enabling you to engage with them.

Fundamental issues, such as understanding each individual store’s DNA for example, are often overlooked. Each store is unique and a range of stores belonging to the same network can have vastly different performance targets based on the number of people visiting the store and how many actually make a purchase. Godiva was quick to recognise this when it first installed a people counting solution – stores trading in tourist areas have widely different traffic flows and conversion rates compared to those in more commercial areas. A one size fits all approach to staffing and merchandising simply cannot work across such a diverse store network.

Retailers must also empower their brand ambassadors, the frontline staff. Store staff are the face of the company – they are responsible for engaging and educating the consumer, inspiring a purchase and ultimately establishing or maintaining a relationship between the customer and your brand. Staff need to have reliable, accurate information on when, where and how many people are coming into their stores and how they are moving around the store once inside.

As shopping habits continue to shift across multiple channels, customers might not always be buying offline. However, if they are visiting your store they will expect the best possible service. Knowing exactly how you are performing in store begins and ends with an understanding of traffic and conversion rates. Using this data to inform how you plan your store strategy is key to providing a consistent and engaging experience.

Integrated Retailer: In-store retail fights back

4/25/2013 1:17:28 PM

- This article originally appeared on The Integrated Retailer on 19 March 2013 -

UK trade show showcases footfall tracking, assisted sales and queue-busting technologies to maximise the value of physical retail investments.

The IT industry turned out at this year's Retail Technology Business Expo (RBTE) to focus on the role of the store in successful omnichannel strategies.

It was clear from the number of exhibitors displaying new products or services based on the latest wireless or internet-based technologies that mobile and cloud came high up the list of new features and functionality.

But their focus was not the latest e-commerce or m-commerce innovation. Rather it was Omnicos on how retailers can bring online capabilities to bear instore to create a consistent and engaging customer experience across all channels.

Godiva counts on store assets

Where some retailers look online for growth, others like luxury chocolate company Godiva, were intent on optimising their shop floor. Retail Technology spoke to Sarah Hawkes, senior European retail strategic merchandising manager at Godiva, about the benefits of an investment in people counting technology.

"We've been using it in our Regent Street store for 18 months and wouldn't be without it now," she said, in advance of her presentation at the RBTE conference today. Hawkes has now overseen the roll out of a system provided by Shoppertrak to all of the retailer's stores across Europe.

"It allows us to track and carry out change in our stores," she explained. "That includes helping with staff training and window display changes, as well as developing the instore layout so it attracts customers. Managers can also own it themselves and use it to understand and improve conversion rates."

Todd Starcevich, ShopperTrak chief executive in Europe, Middle East and Africa, said he saw retailers investing in technology to "keep stores important," referencing headlines about the decline of the UK High Street as property vacancy levels reach 12% and major names scale back estates.

"Stores are still often generating 90-95% of sales," he said. "This is still driving business needs, in terms of how to get smart about shopper footfall tracking and path analysis - even if it is to measure any impact of the concept of 'showrooming,' where customers use their smartphones to use apps and compare prices."

Creating seamless experiences instore

The show featured many suppliers that were targeting instore optimisation requirements overall. Omnico – established from the merger between retail software company Clarity and electronic point-of-sale (EPoS) provider Digipos – held an invitation-only roundtable about enhancing customer experience while keeping the financial director happy.

Steve Thomas, Omnico chief technology officer, observed that retailers were best served by starting with a clear understanding of their customers and their needs before finding business strategies and supporting technologies to meet them now that they are online shopping savvy too.

"I call it the 'webification' of the experience instore," he said, referencing a new Windows-based mobile EPoS (MPoS) tablet debuted at RBTE on Omnico's stand.

So, while mobile and cloud may have been the hot technologies, their development this year has very been centred on how they can enhance retail sales conducted face to face. Simon Pont, chief executive of MPoS provider ECR Retail Systems, demonstrated a new handheld sales device with security protection built in.

Mobilising face-to-face payment

"Using GPRS and Wi-Fi, the unit can scan items, swipe cards, print tickets or issue receipts and actually check that funds are available to authorise payments," he said. "It's also the first PCI [Payment Card Industry] compliant MPoS handheld with transactional, credit card and receipt capabilities in one device."

The show also included developments designed to enhance business processes as well physical or virtual customer experiences. One example, WeDo Technologies, provides revenue and business assurance software that its business development manager, Ana Cuhna already well used by the telecoms sector.

"Retailers use our technology to focus on specific areas for improvement like stock availability and anticipating out-of-stocks or the return on promotions," she said. "They need profit protection, compliance and risk management solutions."

Godiva Spotlight – Retail Business Technology Expo conference insight

2/24/2013 11:29:36 AM

-This article originally appeared on The Integrated Retailer on Tuesday February 12 2013-

Retail Business Technology Expo has attracted a great line up of leading retailers to speak in its conference programme in March.

To give our visitors a taster of what to expect, The Integrated Retailer caught up with Sarah Hawkes, Senior Strategic Merchandising Manager, Godiva, who will be speaking alongside Todd Starcevich from ShopperTrak on’ Foot Traffic Data and Conversion: a Multiplying Effect on Revenue Growth’.

Godiva has been making a mouth-watering range of chocolates since 1926 and is a globally recognised brand as a premier creator of the ultimate Belgian Chocolate experience. We caught up with Sarah at Godiva’s flagship store in Regent Street to find out how Godiva are using the ShopperTrak solution to accurately monitor and analyse performance across its portfolio of stores.

We asked what had prompted Godiva to look at Foot Traffic Data as a tool to help improve its business. “Initially we wanted to find out how we could improve sales at our flagship store in Regent Street. At this point, we weren’t counting shopper traffic so we had no way of identifying any trends. Our key objective was to improve performance, and we realised that as well as having data on the number of visitors to our stores, if we could put a number on the lost shopping opportunities we could make much more informed business decisions.

Before we implemented the solution we were making assumptions around when and why we were busy. Now we have hard data, which helps with a whole range of strategic decisions, including planning staff scheduling. We obviously see big seasonal spikes, but we also found that lots of customers were coming into the store after lunch – when most of our stores staff were taking their breaks! So we’ve been able to make sure that we have enough staff available to help our customers at these peak times.

Having this data available around conversion rates and average sales trends has also helped immensely with our planning and setting sales targets. As the data looks at each individual store, it provides the store managers with the tools to make informed decisions for their own stores, rather than a blanket decision across the estate, and again, this is important as each of our stores are different, with a very diverse range of customers, so the Foot Traffic data gives us the capability to make very tailored programmes for each store.

It also helps us to compare the impact new product launches, or change of window displays has on footfall.

We have different levels of data. Firstly we review weekly, so we can see the peaks, and look at why one day might have been better than another. Then we can dig into the data by the hour to further understand why certain hours were strong. For example, traditionally we used to have minimum staffing on a Sunday, but we discovered that this was actually a peak footfall day for us, so we were able to adjust our staffing accordingly & take advantage of the extra traffic. The data has also helped us to target staff training, as we could pinpoint where we have low conversion rates & average sales.

The solution has really led to a new way of thinking for our sales teams, especially when a 1% rise in conversion can lead to 4-5% sales uplift. We’ve had the solution in for two years, and now everyone sees it as part of their routine. Our store managers love it, as they know that their sales plan is based on the conversion rate, and it’s a realistic target. We’re constantly identifying new opportunities, and the merchandising team rely on the top level data, identifying trends. We know that our theatrical displays pull people into our stores, but it really helps to be able to track conversion down to new window displays etc.”

The Integrated Retailer also took the opportunity to ask Sarah what she’s looking forward to seeing at RBTE. “We see the UK as being an area of growth for Godiva. And we see online as a big opportunity, so I’m really looking forward to seeing what solutions and products are out there to help us expand our online business. I’m also keen to visit RBTE and find out more about how we can translate the customer experience from the store to online. We offer a premium experience, and that needs to be reflected by our online presence.”

Sarah will be speaking on Wednesday 13th March at RBTE – Theatre A at 11.15am

Follow this link for the full case study:

http://info.shoppertrak.com/free-case-study-godivas-insight-into-the-benefits-of-foot-traffic-counting/

ShopperTrak are exhibiting on stand 768 at Retail Business Technology Expo.

Using foot traffic data correctly can make or break a shopping mall

8/27/2012 3:23:09 PM

Oliver Boucke from ShopperTrak discusses how the best shopping centres in the world use foot traffic data as a basis for their mall planning and to measure success.

-This article was originally posted on Retail Digital on 24 August 2012-

WRITTEN BY: Oliver Boucke, Research Director, ShopperTrak

What is the recipe for success for the biggest and most successful shopping malls in the world? Is it location? Is it the glitz and glamour of the building that encourages shoppers from far and wide? Or is it the amazing selection of retailers on offer?

Shopping centres are still suffering from a world-wide economic downturn, although perhaps not as badly as the much maligned high street. In fact, compared to the traditional town centre, shopping malls have many advantages. Some offer free parking, or easy access from motorways and indoor protection from the weather – all of which have helped their performance through the recession years.

Obviously there’s no magic formula that can be replicated time and time again to create the best mall experience. But at this moment in time, it has never been more important for malls and retail outlets to examine how the information at their fingertips can provide useful insights into operational efficiencies and benchmarking performance insights.

The most successful shopping malls across the globe all share a similar trait. By using shopper foot traffic information and analysing the resulting data, they can transform insight into competitive advantage. ShopperTrak works with major shopping malls such as Liverpool One, MetroCentre (Gateshead) as well as Mall of the Emirates in Dubai, just to name a few, and has seen them doing just this.

Liverpool ONE is one of the UK’s leading retail and leisure destinations and part of its huge success is due to its unique offering in terms of customer traffic data availability: centre total, in-mall zones as well as store level traffic.

Matt Bell, Business and Customer Service Director, explained, "At Liverpool ONE, we believe that the key to our ongoing success is to work in partnership with all of our occupiers. Individual store - and retailer category - conversion rate monitoring combined with actual sales turnover performance is invaluable in ensuring that our marketing and operational activity supports the needs of both our occupiers and customers."

"We also provide our occupiers with the information they need to ensure that all elements of their activity - from staffing levels to merchandising - maximises their trading potential."

Foot traffic data is much more than just numbers. By examining patterns and trends, shopping mall managers can open up information about shopper habits, spending trends, prime retail locations, daily and hourly patterns of traffic and much more. Data can be used to identify which locations and outlets perform better than others, how mall-wide promotions can help flagging outlets, right through to setting rents and service charges based on location.

By reviewing data from shopping malls as well as benchmarking against previous years' figures, it is possible to watch trends unfold and centre managers can adapt their sales and management techniques accordingly.

When this data is integrated with sales and transactioninformation, it gives retailers the ability to see how traffic trends directly link to sales spikes, as well as in-store conversion rates (i.e. the proportion of shoppers actually making a purchase).

Here are the top five ways that leading shopping malls can use foot traffic data:

1. Focus on increasing sales, rather than just traffic

Many shopping mall owners consistently focus on increasing visitor numbers in order to increase sales. The soaring traffic growth of a new centre usually lasts just three years or so with as much as 80% of the growth commonly achieved in the first year.

The best way to increase sales performance from outlets is to target an increase in sales per customer. This is best done through detailed targeting of the ideal type of high-spending customer and encouraging them to visit through targeted marketing efforts. Higher sales transactions can also be achieved by re-scheduling store staffing levels – to match store (traffic) selling opportunities – which ultimately provides better customer service.

By focusing on increasing spend per head, it is possible to continue the sales growth trend for the future.

2. Measure the effectiveness of marketing promotions

All shopping malls run regular marketing promotions for the entire mall, sometimes working with specific retailers. However, these campaigns are useless without proper measurements in place to examine just how effective they have been.

By analysing foot traffic and sales conversion reports during a period of promotion, activity spikes can be used to measure effectiveness.

3. Labour scheduling

By analysing the trends and patterns in foot traffic, shopping malls can cascade useful information to all of the retail outlets to help them plan labour scheduling.

If stores know that visitor numbers spike at 3.30pm on Fridays, for example, they can ensure resources are on the shop floor.

It is essential for retailers to manage their staffing levels because shoppers won’t hang around if they can’t get the assistance they need or have to queue to make a purchase

4. Tenant engineering

Placing retail outlets in the best location within a mall is a bit like fitting a jigsaw together. Sometimes it fits, but other times it needs a bit of re-organisation. By using foot traffic patterns and trends, managers can use hard evidence to ensure all the different parts fit together for the best results for each retail outlet.

If a certain retail outlet is performing below expectations, it could be down to location. By changing the location of the outlet and placing it nearer to a heavy foot traffic area, this can help reverse the fortunes of the outlet.

5. The importance of entrances and exits

Huge shopping malls have multiple entrances and exits. By using data to discover the most popular entrance and exit, managers can ensure flagship stores are placed in key locations to channel shoppers through them.

For example, in Liverpool One, John Lewis has a stunning flagship store placed at the main entrance from the car park, which brings customers directly into the heart of the store, before channeling them through to the rest of the mall.

Retail Technology: Is showrooming here to stay?

2/5/2013 2:20:49 PM

--This article was originally published on Retail Technology on February 5, 2013--

Todd Starcevich discusses the future of store shopping ‘showrooming’ trend and how retailers can use foot traffic data and analysis to harness it for competitive advantage in 2013.

The way that we shop has drastically changed over the past few years and with these changes have come a number of new phrases and buzzwords including ‘omnichannel’ and ‘showrooming,’ i.e. visiting a bricks-and-mortar store only to buy online later.

With the proliferation of mobile devices and all that they offer the retail experience, Todd Starcevich, chief executive of Europe and Middle East at people counting technology and foot traffic analysis provider ShopperTrak, said it comes as no surprise that multichannel touchpoints have acted as a catalyst for the showrooming trend to grow. With smartphones outselling PCs for the past two years running, the trend is almost certain to repeat itself in 2013.

Rather than fear this, Starcevich contends that retailers should begin to approach showrooming with confidence. “One way of doing this is by using people counting technology to analyse who is coming through your front door and whether they are making a purchase, before comparing this data back to trends from online and mobile platforms,” he said.

Mapping the customer journey

The physical counting of people in and out of stores enables retailers to map the customer journey accurately – targeting shoppers instore before they hit the web by identifying and answering key questions; who are my customers, where are they shopping, what they are buying, if they are not buying, why not? “Knowing your customers and how they move around the store is the essential first step when considering showrooming,” he said.

Male shoppers between the ages of 25-34 for instance have recently been identified as the most likely demographic to ‘showroom’. “Perhaps they are more inclined to shop around for the best product at the lowest price, while women may have a greater tendency to impulse shop and prefer the human interaction of the instore experience,” Starcevich suggested. Either way, he suggested that identifying similar trends and using foot traffic data to understand customers is imperative in creating dynamic marketing tactics, such as visual merchandising and instore displays that will capture the imagination of shoppers while instore.

As well as using foot traffic technology to identify brick and mortar visitors, retailers can use it to harness an overall positive instore customer service. “A small difference in price found when showrooming on a mobile device will almost certainly trigger the customer to leave the store and buy online, unless a price-match policy is in place,” continued Starcevich. “As shoppers are becoming savvier, every detail of the in-store experience needs to be stepped up and able to deliver. Locating trends as discussed can assist retailers looking to identify busy shopping periods that may require more staff for instance. This enables them to plan their labour scheduling more effectively, reducing wasted time and resources but crucially enabling retailers to put their best sales assistants on the shop floor at peak times.”

Starcevich also said that constructing an effective staff training programme is also imperative. On seeing the potential buyer, the shop assistant should start to actively interact and offer help, advice and recommendation in order to avoid a price comparison occurring on a handheld device. “A successful foot traffic programme can evaluate the success of these customer engagement tactics and can analyse the outcome of new training techniques,” he added.

Maximise multichannel opportunity

If a customer does decide to shop online, then the footfall expert said the retailer must take extra measures to ensure brand loyalty and a positive shopping experience that extends out of store. “While brick and mortar shopping is the most tangible option for brands as they seek to maximise the average transaction through promotions, cross-selling and an enhanced customer service experience, the main goal should be built upon creating customer loyalty,” Starcevich said. Ordering online and picking up instore is one strategy that retailers are now adopting. As well as offering a larger array of choice with a convenience factor, shoppers still have to visit the store in order to pick up their purchase. Most importantly, an end sale occurs at some point within the multichannel – it is always better to make a sale online than to lose out to another competitor completely.

At the heart of it showrooming is clearly here to stay; so is the need for inventive and dynamic tools for retailers to approach it head on. If physical stores can’t compete with online retailers on price then the instore experience must compensate by being consistently excellent – for example using foot traffic data to ensure that the right staff are in the right place at the right time. The bottom line? “You have to make investments in technology proven to provide you with the insights necessary to be ready for tomorrow. Get to know your customers inside-out so that you can target them instore, before they get out and leave you for someone else,” concluded Starcevich.

Maximising the value of the franchise model

1/16/2013 10:54:47 AM

Published by: The Integrated Retailer on Jan 3rd, 2013

By Todd Starcevich, CEO of Europe and Middle East, ShopperTrak

How people counting solutions can improve relationships between franchisors and their franchisees while improving the bottom line.

Franchising can be a complicated business model. With different regulations applying across geographical regions, franchises can be tied to a greater or lesser extent to the franchisor depending on where they are located. However, for many retailers, franchising is synonymous with international expansion particularly for those brands looking to reach previously inaccessible territories.

The challenge is finding the right franchising partner and being able to analyse how well they are performing. A consistent traffic counting system across all stores is a key first step towards achieving this.

Although there are brand guidelines in place between franchisors and franchisees, with strict criteria for ensuring brand consistency, there are rarely stipulations for consistent technologies or data analytics tools for example. Naturally franchisors have a vested interest in giving their franchisees the tools they need to enable them to succeed. Yet franchisees are free and often inclined to run the franchise as they see fit.

They have a level of autonomy not afforded to a traditional retail store network model and therefore have ultimate responsibility for the success or failure of their individual businesses. This can make it difficult for retailers to enforce technology decisions and is another reason why choosing a franchising partner that shares their vision is so crucial.

In reality, the collection and analysis of sales and marketing data offers huge opportunities for both franchisor and franchisee to improve performance. One key example is in the use of traffic counting. To date, this has not automatically formed part of the franchisor/franchisee agreement. While the franchisor may offer to sell the franchisee a license to use their people counting system, there has been no incentive, contractual obligation or perceived benefit to do so.

Consequently, many opt not to use counting devices at all meaning they have no way of tracking the number of people entering their stores, or more importantly, mapping that data to those that exit without making a purchase. Some franchisees rely on manual counting which is a time consuming and inaccurate way of recording shopper movement while others use proprietary or country-specific solutions.

This strategy is detrimental to both parties. From a franchisor’s perspective they may have hundreds of franchisees globally, all operating different people traffic counting systems, if they are even using one at all. This makes it very difficult for franchisors to have overall visibility of how their network is performing, or to make comparisons across territories or country specific stores. For the head office sales and marketing team, this means having different sets of data, which cannot be compared or benchmarked against each other.

Franchisors need to take the lead by negotiating global deals for a people counting solution that can be rolled out across the franchise network. Some are now giving franchisees a sales and marketing budget, a proportion of which must be spent on a foot traffic counting system. By working closely with one traffic counting provider they are able to negotiate a master agreement and conditions, making it easier for franchisees to adopt the chosen system.

For the franchisee, the option to use a system negotiated by the franchisor gives them access to a much more sophisticated solution, usually at a fraction of the cost that they would need to invest individually. They also benefit from a fully managed service, which means the franchisee is not responsible for troubleshooting or resolving technical problems.

By operating a global reporting tool that collates total foot traffic counts, and offering discounts to franchisees on the technology and implementation, franchisors are able to harness data from across the network – giving a more holistic view of how the brand is performing overall.

This highly accurate data can also be used by franchisees to analyse their own store’s performance by monitoring their people traffic flows as well as looking at how this compares to sales conversion rates. These figures can be analysed on an hourly, daily or weekly basis, enabling franchisees to manage labour scheduling more efficiently based on peak traffic flow times and to plan and evaluate marketing promotions more effectively.

The concept of counting people in and out of stores is not a new one. For retailers, the challenge has always been how to ensure that their store network is using one single system to guarantee the degree of accuracy that is necessary to harness data that can help them to make better business decisions. This inconsistency is exacerbated with the franchise model. However, with retail margins continually squeezed it is vital that franchisors and franchisees work together to understand their customers’ behaviour better.

A global people counting solution combined with predictive analytics should be a fundamental part of this strategy. By working together on understanding store performance, and using this insight to make improvements, franchisees will have the freedom to branch out, without losing sight of their roots.

ShopperTrak EMEA Customer Newsletter - Winter 2012/2013

9/2/2011 1:00:18 PM

At ShopperTrak, we have forecasted the 10 busiest shopping days across Europe this Christmas, with Super Saturday or 22nd December to be the busiest day of the holiday calendar. Get our tips on how to be prepared for the holiday rush by downloading our winter newsletter now!

In this issue of our EMEA Newsletter, you will also find:

Our enhanced mobile app now includes a Mall Report and it is available in 8 new languages. Get it now from iTunes!
Meet our client operations team. Are you interested in our trainnings and seminars?
Other news and blog postings

We will be sending you our EMEA newsletter seasonally to keep you up to date with industry news, useful tips and important ShopperTrak information that will help you make the most out of your traffic programme. Please include this email in your approved sender list and do not hesitate to get in touch with the ShopperTrak team for any questions that you may have. We hope you will enjoy reading our newsletter.

Download the newsletter now!

On The Right Trak

7/23/2012 11:48:51 AM

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Published by Retail Systems (June/July 2012, page 48)

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Karen Moss catches up with newly appointed CEO for Europe at ShopperTrak, Todd Starcevich, to find out why measuring footfall is more important for retailers than ever before and how it can help them boost sales.

In a world where data is king retailers are constantly striving to collect more and more information on their customers.

But with all the complex facial recognition and motion capture technology available today, is it possible that retailers are forgetting a simple truth? That they need foot traffic first and foremost. After all, there’s no point spending cash from an already squeezed IT budget on expensive new technologies if your customer base is not there.

The message from ShopperTrak, the world’s largest provider of retail foot traffic counting, is that companies with a true idea of how many consumers are crossing their thresholds across their entire store estate can more accurately plan everything from marketing and staffing to the location of new store openings.

CEO for ShopperTrak Europe and the Middle East, Todd Starcevich, says: “Many customer counting systems being used by retailers in Europe today simply lack the accuracy they need to deliver the business insights that retailers expect. The fact is that monitoring the footfall of each store separately is not enough. You need to be able to measure footfall across the entire store estate. Only that way can a retailer truly measure store performance locally, regionally or nationally.”

“If a retailer has two stores in similar locations, serving a similar customer demographic but those two stores have very different conversion rates, they need to know that. Being presented with that information allows them to go and find out what those two stores are doing differently and make changes as necessary.”

As many retailers know to their cost, the way people shop has changed dramatically since the birth of e-commerce and it has shifted again in the last few years thanks to smart mobile devices. The advent of online shopping has meant a decrease in footfall on the High Street, but Todd says this means understanding your customers and having up-to-date data is more important than ever.

ShopperTrak, a fully managed solution that provides real-time traffic data, has managed billions of shopper visits across the globe for the last 20 years. Because of their longevity their algorithms can predict when and where people will shop and how many consumers to expect. Last year they predicted the week before Christmas would be especially important for retailers, as five of the top sales and foot traffic days would occur between 18 and 24 December. ShopperTrak said retailers could

expect consumers walking into their stores that week to have conducted plenty of online research and would be ready to buy.

Todd says that having one system across many stores means that retailers can more easily predict and plan for these kinds of busy periods. “We install and configure the hardware,” he says.

“We then remotely collect traffic and PoS data and format web-based daily reports for our clients. Using this real-time information retailers can better plan their staffing schedules around peak times and their busiest stores. It can also impact their stock planning, which can be one of the most challenging areas for retailers – especially in a multi-channel world where you have Click & Collect or even online delivery orders being picked from stores. Knowing when their peak traffic times are means they can ensure their shelves are fully stocked.

“Historical data allows them to see which times of year they get the most footfall, for example Christmas, so they can prepare. Reviewing this data can even help retailers assess the impact or success of marketing strategies. Did a certain offer get more people through the door? And then, once there, did that encourage them to buy? Was there an uplift in sales? These are important questions that every retailer wants to answer.

“When retailers install our system they can often be quite shocked by the findings we present to them. Many had no idea so many people were entering their stores without making purchases. But we like to think that through discovering the problem retailers will have the chance to improve conversion.”

ShopperTrak counts people, analyses data, and reveals total sales opportunities for retailers and mall owners, worldwide.

With over 45,000 managed devices in service and billions of shopper visits counted annually, they’re the global leader in people counting and store performance analysis.

ShopperTrak EMEA Newsletter - Summer 2012

9/1/2011 10:23:22 AM

ShopperTrak has established a dedicated presence in Europe, reinforcing the European and Middle Eastern growth strategy that will allow us to meet the needs of our customers at a regional, national or international level. We have recently moved to our new European offices in High Wycombe, just outside London, and have opened offices in Dubai, France and Germany.

Follow the link below to download the summer issue of our EMEA Newsletter and find out more about:

- The launch of our new international websites

- New dedicated programmes

- Useful articles related to traffic and conversion

- An introduction to ShopperTrak’s team

- Other interesting news and promotions

We will be sending you our seasonal newsletter to keep you up to date with industry news, useful tips and important ShopperTrak information that will help you make the most out of your traffic programme. Please include this email in your approved sender list and do not hesitate to get in touch with the ShopperTrak team for any questions that you may have.

We hope you will enjoy reading our newsletter.

Download the Summer 2012 ShopperTrak EMEA Customer Newsletter now!

Retailers must demand more from people counting data

5/22/2012 9:32:47 AM

By: Todd Starcevich, CEO Europe, ShopperTrak

-Published by Retail Gazette on Mon 21st May 2012-

The concept of counting customers in and out of stores is not a new one for European retailers. For the most part, retail brands and shopping mall owners throughout Europe have embraced people counting technology – many were even early adopters of it. However, a large number of companies are using systems that were implemented years ago and are now rudimentary in terms of technology and reliability.

These same systems lack the accuracy necessary to deliver key insights that can be accessed by matching the traffic data information with sales transaction and labour (scheduling or staffing) data.

With mounting pressure on retail margins and further convergence of online and offline shopping, enlightened retailers have begun to understand the need to monitor and analyse customer interaction across all stores. Doing this can help retailers to make more informed decisions about marketing, staffing, location and even devising the right strategy for new openings based on comparable store data. The challenge for retailers now is to ensure they have the right technology and processes in place in order to make this happen.

One system, multiple stores and geographies

Many retailers rely on shopper counting hardware that has been installed by a distributor, with a different vendor aggregating the resulting data. The notion of forming a long-term partnership with one provider or making specific demands on the quality of their supplier’s analytics is not as widespread as it should be. Good data should be a given when analysing people counting data, however accuracy and consistency rates of 80 per cent are not uncommon. This in turn means that the resulting predictive analytics are unreliable.

It is hard to imagine any other business implementation where a figure like this would be considered acceptable. A retailer certainly would not passively accept a 20 per cent discrepancy in its yearly sales figures. The knock-on effect of poor traffic counting accuracy can be significant; a 20 per cent margin of error in your people counting data could impact the staff you bring onto the shop floor by as much as 50 per cent. Fortunately, just as they were early pioneers in their use of people counting technology, European retailers have also been quick to respond to the need for better data – and more of it – to gain an accurate view of how their customers are interacting with each store. These retailers understand the need to tie shopper counting into conversion rates, but they face internal barriers such as inconsistent strategies across territories.

Many retailers who operate across geographies make local purchasing decisions and may be using different counting devices or analytics across Europe. This makes it extremely difficult for global heads of marketing or operations to compare and contrast data or make business decisions based on this information. These operational heads, or in some cases global heads of insight, understand the need to adopt one system that is consistent across all stores and countries, in order to have true visibility over how the company is performing.

This demand for more detailed, better quality data is also evident in the UK. Some shopping centres here are not only counting traffic along perimeters, they are also implementing counting devices within individual stores to monitor the performance of each tenant. Retailers also share their point of sale data with mall owners in order to drive promotions. Together this increased level of collaboration helps to improve operational effectiveness and create a holistic view of traffic and conversion at every touch point.

Improving operational efficiency across channels

A greater level of visibility is crucial from a labour management perspective, enabling store managers to put their best staff on the shop floor during peak traffic times and reduce staff numbers during quieter hours. It also helps to optimise physical stores as online shopping continues to grow. While many people are choosing to browse or buy online, there are still a large proportion of consumers that make their final purchases in store. Giving the customer the best possible experience when they arrive, with the right staff and the most relevant promotions, is vital for repeat business.

As such, it is imperative that retailers understand their online and offline sales in tandem rather than pitting one against the other. Online retailing is a complement to bricks and mortar, however if the in store experience is not stellar, then the conversion rates will fall both online and offline.

Retailers must be prepared to make strategic business decisions based on the outcomes of traffic and conversion data. If online sales are beginning to outstrip in-store sales in certain locations, it may indicate poor management performance, a need to relocate to smaller premises or a change in the focus of the store completely. Retailers can only do this if they know the data they are relying on is completely accurate.

Using data to drive the business

Understanding customer behaviour is not just a case of looking at sales figures or counting approximately how many people are coming in and out of shops; retailers must understand who is entering their stores and leaving without making a purchase, how many browsers are being converted to sales, which store configurations (or layouts) drive the highest conversion rates, which promotions deliver the best return and which staff make the most sales.

The latest traffic counting technology combined with predictive analytics can help store and mall owners to answer many of these questions and should be a fundamental component in the quest to collect higher volumes of accurate and useful data. Only by having a clear understanding of each store’s performance and knowing whether or not it has the potential to improve, can retailers begin to use data to drive their businesses forward.

Todd Starcevich is European CEO of the world’s largest retail traffic counter ShopperTrak

About the author
Todd Starcevich joined ShopperTrak, the world’s largest retail traffic counter, in 2006. Primarily charged with developing the implementation program for large scale traffic counting projects and key pilot opportunities with new clients, Todd also became CEO of ShopperTrak in Europe in January 2012.

Additionally, he is responsible for developing medium and long term support strategy for new ShopperTrak services, as well as unique client arrangements; identifying areas for process and procedural improvement. http ://www .shoppertrak .com

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Being Sharp Without Sharp Discounts

5/9/2012 10:28:55 AM

How to increase retail sales without cutting prices

By: Todd Starcevich, CEO Europe, ShopperTrak

-Published by MyRetail Media on 04/05/2012-

British fashion retailers are being challenged as never before by the value conscious consumer. While shoppers still gravitate toward recognisable brands, they are much more discerning about when and where they decide to shop. Many now use the internet to window shop and compare prices, making it all the more important for retailers to provide a special experience when they enter the store. Going forward into the New Year, retailers are looking at ways they can keep retail sales high, without resorting to discounts, and even increase their turnover in the long term.

As any seasoned retailer knows, the market has shifted dramatically during the last 14 years. The Internet provides almost anything, at a reasonable cost, and it’s growing. Smart phones, electronic coupons and group discounts also inform and influence shoppers. Consumers browse online, and then visit shops expecting to make purchases that fit their criteria — whether those be time, value or quality-based.

More than ever, retail store managers must understand shopper behaviour in order to provide a competitive, positive customer experience— and counting and analysing foot traffic is the first place to start. Traffic knowledge empowers fashion retailers to make adjustments, especially in staff management, that will help them to capture new sales.

Foot traffic is a simple but powerful metric. Frequently, when stores install comprehensive foot-traffic monitoring systems, managers are shocked by two findings: Firstly, more customers enter the store than they thought. Secondly, fewer make purchases. Only by carefully measuring and monitoring these key indicators of retail health can stores begin to address them and improve their bottom lines.

Measuring foot traffic regularly reveals retail sales lulls that could easily be improved. For example, in one implementation in the US, a clothing retailer noticed a steep drop in its conversion rate. It occurred across all of its stores, week after week. The cause: a regional store manager phone conference. It was scheduled once a week during the lunch hour rush. During the call, selling responsibilities were left to sales assistants. When the store managers joined the conference call and left the floor, the normal conversion rates of 20 percent would drop to single digits.

To all appearances, the floor looked fully staffed and busy during this time. Only by comparing traffic counts to point-of-sale data did shop executives realise they missed conversion opportunities during this period.

After tracking the data and analysing what was happening, the retailer shifted this weekly call to a non-peak period. This allowed managers to assist sales assistants during the traffic rush, and brought the conversion rates during that hour of heavy foot traffic back to 20 percent.

These small changes to the schedule affected all stores around the country and increased the company’s revenue by millions of dollars. It did not attract more customers or cut prices. It simply allowed stores to maintain proper staff levels and convert more browsers into buyers.

Improved conversion rates and identifying peak foot-traffic times (sometimes called “power hours”) are not the only reasons why retailers should measure foot traffic in their stores. Foot traffic also helps individual store managers to make staffing and inventory decisions. With precise data, store managers and regional managers do not have to rely on qualitative, anecdotal evidence. Hard facts can play a bigger role in setting employees’ schedules, deliveries and planning non-selling activities. Scheduling these activities correctly keeps the right number of managers and sales staff in store handling customer rushes and ensuring that customers make it to the till point of sale.

Traffic counting also prepares a store to capture business. It ensures that the store is fully stocked for peak times and provides worthwhile shopping for customers. If you do not have the product available when the customer comes in ready to buy, he or she may leave empty-handed. The customer will consider the shop unprepared — in either stock or staffing — and may not return. When someone leaves the shop, it is likely that their money goes to the competition.

Though counting customers in some way — manual counts or surveys — has been around for years, counting foot traffic today is an exact science. The current methods are accurate, unobtrusive, easily connected systems of tens of thousands of sensors — creating a daily quality control system that old-fashioned techniques cannot replicate. This kind of insurance and automation gives clothes retailers an accurate picture of their businesses’ overall health and important insight for capturing shopper opportunities. Despite being a sophisticated technological solution, they allow merchants to capture business with a much more traditional tactic—a positive customer experience.

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Playing in Traffic: An Introduction

11/14/2011 10:18:10 PM

Today, we are announcing a new blog post called Playing in Traffic. After many years of intense involvement with hundreds of clients, there are many stories of success and failure that I would like to share. These, along with the latest traffic topics of the day, will become an open forum to discuss consumer behavior, traffic trends and general information around the latest in traffic management.

It is well known that ShopperTrak has been the prominent developer of many of the traffic management concepts used today. Back in the 90s, we introduced the concept of Conversion Rate, Power Hours™ and Shopper-to-Associate Ratio at a Pier 1 store in Toms River, New Jersey. We were the first to use overhead devices that allowed us to see traffic entering and leaving which opened an entirely new thought process for counting traffic as a business enhancement tool. Having progressed to video and having led the technology race to exploit its capabilities, we now support over 250 clients in over 70 countries around the world with an end-to-end traffic management solution and we are considered the undisputed leader in this industry.

I invite you to share your stories, questions and concerns by sending an inquiry through our “Contact Us” page. I will engage a host of subject matter experts to assist in researching every question that comes our way. In doing this, we will hopefully be able to develop a community that will bring insight, knowledge and behaviors that will help retailers enhance the experience they wish to deliver to their customers.

Please stop by our booth #2327 at the 2012 NRF show to say, “Hello!” We have an exciting display and will be showing off some of the newest ideas in retail traffic management.

Bill Martin

Founder, ShopperTrak