Shopper analytics also referred to as shopper insights is a market research that focuses on the examining the experiences and behaviors of customers in retail stores. It assists retailers understand the factors within the retail outlet that influence the perceptions and purchasing behaviors of customers.
Shopper analytics is an essential metric that involves a systematic process of gathering, modeling, and analyzing important data about consumers to categorize types of consumers and predict their behavior to help retails achieve the following:
Improve profit margins: Customers are different and they possess distinct purchasing powers. It is important for retailers to understand these differences to model their strategies of engaging these different customer segments. Some customers contribute to more profits to a business than others and in some cases; some customers might even cost the business some money. Shopper analytics provide key information on factors that affect the profitability of a customer such as the duration of handling customer’s order, the size of the order, and the time spent servicing returns and servicing the customer’s account.
Increase market efficiency: Shopper analytics helps retailers to focus their attention on individual customers to understand their needs and serve them better. It becomes easier for retailers to determine marketing channels that attract customers with the highest value to the business in terms of profitability, rate of retention, and size. Such information can help the retailer to either expand the marketing costs for more reach out or cut the costs if the business has realized its marketing objective.
Increase sales: Retailers who understand the purchasing decisions of their customers stand a better chance to increase their sales revenue. Shopper analytics helps retailers identify the factors with positive and negative implications on sales and address them in time. Such factors could be customer income or location, discount issues, or customer handling service.
Increase the rate of retaining customers: It is expensive to acquire customers. Understanding the reasons that cause customers to leave can help businesses to find ways to address such factors to increase customer retention and minimize exits. Shopper analytics can help retailers identify red flags to take necessary action to prevent exit of its existing customers.
With Glimpse analytics’ face recognition technology, you can sit back and relax as we work behind the scenes to provide you with the shopper analytics to assist you in making important decisions to steer your retail store.