Don’t believe those who tell you brick-and-mortar retail is dead. Despite the huge popularity of e-commerce, brick-and-mortar stores are here to stay. Physical store locations act as showrooms for your products, while e-commerce allows consumers to research all their options in a convenient format. But this doesn’t mean e-tail and retail should be at odds. In fact, they rely on each other for survival.
There are many creative strategies for using both on and offline channels in tandem, Marketers call this an omni channel experience. We have a zillion metrics for measuring e-commerce marketing effectiveness. In this blog I’d like to focus on how we can measure marketing effectiveness for physical stores – it could well be the street-food cart round the corner.
I distinctly remember an incident, I was 9 and I was in a clothing store, and being a curious kid, one of the many questions I posed to my dad was “Why do they keep obstructing my way by placing clothing racks in the path?” He took his time and then answered, “Because they don’t want you to go away quick.” I laughed at that time, but in introspection, that is the absolute truth. Brick & mortar stores try all possible methods to hold you back and make you take a look at what they have to offer. And so do online ecommerce sites; they try to show you the best that they have in the few minutes you spend there. So, in essence, they have similar philosophies when it comes to attracting customers.
This would surely raise your morale and hope, if you are brick and mortar retail store. But is the confidence alone enough to run your business? No, you need data and analytics to back it up. Well, for now, let’s just try to borrow the hard gained ideas that ecommerce sites have obtained over the years of analysis and customize it for your business.
Let us try to draw comparison between top pages viewed and top products in the store.
Top products visited vs Top pages viewed
Nowadays, only transaction / sales data is being collected but collecting data pertaining to products viewed by customers can be very helpful, if done properly. Identifying the products and corresponding departments are important for brick and mortar stores and will also help them assess the value of the product or department in the store. If the sales are not directly proportional to product visits, then the vendor can comfortably assume that there is a mistake in the whole arrangement.
Offline A/B testing – Site A/B testing
Retailers can do a A/B testing to understand customers behavior and this also offers detailed feedback which is far beyond the numbers that sales data provides.
Offline Shopper flow – Site Navigation
Wouldn’t it be cool, if we were able to understand where shopper travels inside the shop and the path he takes? They can understand, the road less travelled by the customer and on investigation they can find the reason as well. This data can be used by the Marketing team for effective promotion and sales.
When the whole world has praised the online for successfully using analytics in day to day operations, I believe it is time for physical stores to show their mettle. This will increase their operation excellence coupled with the humungous benefit of effective marketing and sales.
If you think the otherwise, please leave your comment. If you agree, leave a comment as well!
This blog is written by Alagiri Samy, Analytics Consultant at BRIDGEi2i
About BRIDGEi2i: BRIDGEi2i provides Business Analytics Solutions to enterprises globally, enabling them to achieve accelerated business impact harnessing the power of data. Our analytics services and technology solutions enable business managers to consume more meaningful information from big data, generate actionable insights from complex business problems and make data driven decisions across pan-enterprise processes to create sustainable business impact. To know more visit www.bridgei2i.com
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official position or viewpoint of BRIDGEi2i.