Tag Archives: associate optimization

An Easy Introduction to In-Store Measurement and Retail Analytics with DM1

My last post made the case that investing in store measurement and location analytics is a good move from a career perspective. The reward? Becoming a leader in a discipline that’s poised to grow dramatically. The risk? Ending up with a skill set that isn’t much in demand. For most people, though, risk/reward is only part of the equation. There are people who will expend the years and the effort to become a lawyer even without liking the law – simply on the basis of its economic return. I’m not a fan of that kind of thinking. To me, it undervalues human time and overvalues the impact of incremental prosperity. So my last and most important argument was simple: in-store measurement and location analytics is fun and interesting.

But there’s not a ton of ways you can figure out if in-store measurement is your cup of tea are there?

So I put together another video using our DM1 platform that’s designed to give folks a quick introduction to basic in-store measurement.

It’s a straightforward, short (3 minute) introduction to basic concepts in store-tracking with DM1 – using just the Store Layout tool.

The video walks through three core tasks for in-store measurement: understanding what customer’s do in-store, evaluating how well the store itself performed, and drilling into at least one aspect of performance drivers with a look at Associate interactions.

The first section walks through a series of basic metrics in store location analytics. Starting with where shoppers went, it shows increasingly sophisticated views that cover what drew shoppers into the store, how much time shoppers spend in different areas, and which parts of the store shoppers engaged with most often:

retail analytics: measuring store efficiency and conversion with DM1

The next section focuses on measures of store efficiency and conversion. It shows how you can track basic conversion metrics, analyze how proximity to the cash-wrap drives impulse conversion, and analyze unsuccessful visits in terms of exit and bounce points.

DM1 Layout Overview Video

Going from what to why is probably the hardest task in behavioral analytics. And in the 3rd section, I do a quick dive into a set of Associate metrics to show how they can help that journey along. Understanding where associates ARE relative to shoppers (this is where the geo-spatial element is critical), when and where Associates create lift, and whether your deployment of Associates is optimized for creating lift can be a powerful part of explaining shopper success.

retail analytics with dm1 - analyzing associate performance, STARs and lift with DM!

The whole video is super-quick (just 3 minutes in total) and unlike most of what I’ve done in the past, it doesn’t require audio. There’s a brief audio introduction (about 15 seconds) but for the rest, the screen annotations should give you a pretty good sense of what’s going on if you prefer to view videos in quiet mode.

I know you’re not going to learn in-store measurement in 3 minutes. And this is just a tiny fraction of the analytic capability in a product like DM1. It’s more of an amuse bouche – a little taste –  to see if you find something enjoyable and interesting.

I’m going to be working through a series of videos intended to serve that purpose (and also provide instructional content for new DM1 users). As part of that, I’m working on a broader overview right now that will show-off more of the tools available. Then I’m going to work on building a library of instructional vids for each part of DM1 – from configuring a store to creating and using metadata (like store events) to a deep-dive into funnel-analytics.

I’d love to hear what you think about this initial effort!

Check it out:

Using In-Store Customer Journey Data: Associate Optimzation

If store layout/merchandising and promotion planning are the core applications for in-store customer journey measurement, staff optimization is their neglected and genius offspring. For most retail stores, labor costs are a huge part of overall operating expenses – typically around 15% of sales. And staff interactions are profoundly determinate of customer satisfaction. In countless analytic efforts around customer satisfaction and churn, the one constant driver of both is the quality of associate interactions. People matter.

The human factor is a huge part of the customer journey. Some in-store measurement solutions treat staff interactions the way digital solutions treat employee visits – as data to be culled out and discarded. The only thing worse is when they leave them in and don’t differentiate between customer and staff!

No part of the customer journey and no part of the store has a bigger impact on the journey, on the sale, and on the brand satisfaction than interactions with your sales associates. And, of course, labor costs are one of the biggest cost drivers at the store. So optimizing staff is critical on every front: revenue optimization, customer satisfaction and cost management. It’s rare that a single point of analysis drives across all three with so much impact, highlighting how important associate optimization really is.

With staff data integrated into customer journey measurement, you know how often associate interactions occurred, you know how long they lasted, and you know how often they resulted in sales. Some stores will already track at least some of this as part of their incentive programs, but customer journey data provides a true measure of opportunity and productivity. Some of these data points are straightforward, but there are interesting aspects to staffing data that go beyond basic conversion effectiveness. It’s possible, for example, to isolate the number and impact of cases where staff interactions should have happened but didn’t. It’s also possible to understand optimal contact strategies, answering questions like ‘how long should a customer be in a section before a contact becomes desirable or imperative? ‘  Even more interesting is the opportunity to bring sports-driven team and player metrics to bear on the problems of staffing. You can understand which associate combinations work best together, how valuable team cohesion is, and the value spread between a top associate and an average hire. This is all invaluable data when it comes time to plan out schedules and staffing levels and, when paired with weather data, can also be used to optimized staffing plans on a highly local basis.

Finally, there are deep opportunities to use this data to optimize broader aspects of staff optimization. By integrating Voice of Employee (VoE) data with associate effectiveness, you can hone in on the golden questions that will help you identify the best possible hires. Creating a measurement-driven, closed loop system to optimize associate hiring decisions isn’t what people generally think of when they evaluate in-store measurement. But it’s a unique and powerful use of the technology to drive competitive advantage.

 

Questions you can Answer

  • Are there days/times when a store is over/under staffed?
  • Are there better options of positioning staff?
  • What’s the best way to optimize staffing teams and placements?
  • How much does training impact staff performance?
  • What questions should I ask when I hire new staff to identify potential stars?
  • How successful is any given associate in converting opportunities?
  • What’s the right amount of dwell-time to allow a customer prior to an associate interaction?

To find out more about retail analytics and in-store customer journey tracking, check out my new company’s site: DigitalMortar.com