Tag Archives: store metrics

Retail Analytics: Store Visualization and DM1

Location analytics isn’t really about where the shopper was. After all, a stream of X,Y coordinates doesn’t tell us much about the shopper. The interesting fact is what was there – in the store – where the shopper was. To answer most questions about the shopper’s experience (what they were interested in, what they might have bought but didn’t, whether they had sales help or not, and what they passed but didn’t consider), we have to understand the store. In my last post, I explained why the most common method of mapping behavior to the store – heatmaps – doesn’t work very well. Today, I’m going to tackle how DM1 does it differently and (in my humble opinion) much better.

Here are the seven requirements I listed for Store Visualization and where and why heatmaps come up short:

Store Visualization: Heatmaps and retail analytics

Designing DM1’s store visualization, I started with the idea that its core function is to represent how an area of the store is performing. Not a point. An area. That’s an important distinction. Heatmaps function rather like a camera exposure. There’s an area down there somewhere of course – but it’s only at the tiny level of the pixel. That’s great for a photograph where the smaller the pixel the better, but analytically those points are too small to be useful. Besides, store measurement isn’t like taking a picture. The smaller the pixel the more accurate the photo. But our measurement capture systems aren’t accurate enough to pinpoint a specific location in the store. Instead, they generate a location with a circle of error that, depending on the system being used, can actually be quite large. It doesn’t make a lot of sense to pretend that measurement is happening at a pixel location when the circle of error on the measurement is 5 feet across!

This got me thinking along the lines of the grid system used in classic board games I played as a kid. If you ever played those games, you know what I’m talking about. The board was a map (of the D-Day beaches or Gettysburg or all of Europe) and overlaid on the map was a (usually hexagonal) grid system that looked like this:


Units occupied grid spaces and their movement was controlled by grid spaces. The grid became the key to the game – with the map providing the underlying visual metaphor. This grid overlay is obviously artificial. Today’s first person shooter games don’t need or use anything like it, but strategy games like Civ still do. Why? Because it’s a great way to quantize spatial information about things like how far a unit can move or shoot, the distance to the enemy, the direction of an attack, the density of units in a space and much, much more.

DM1 takes this grid concept and applies it to store visualization. Picture a store:

store journey analytics

Now lay a grid over it:

Visualizing Store Data

And you can take any place the shopper spends time and map it to a grid-coordinates:

Mapping customer data to the store

And here’s where it really gets powerful. Because not only can you now map every measurement ping to a quantifiable grid space, you can attach store meta-data to the grid space in a deterministic and highly maintainable way. If we have a database that describes GridPoint P14 as being part of Customer Service on a given day, then we know exactly what a shopper saw there. Even better, by mapping actual traffic and store meta-data to grid-points, we can reliably track and trend those metrics over time. No matter how the shape or even location of a store area changes, our trends and metrics will be accurate. So if grid-point P14 is changed from Customer Service to Laptop Displays, we can still trend Customer Service traffic accurately – before, after and across the change.

That’s how DM1 works.

Here’s a look at DM1 displaying a store at the Section level:

Retail Analytics: Store Visualization in DM1

In this case, the metric is visits and each section is color-coded to represent how much foot traffic the section got. These are fully quantified numbers. You can mouse over any area and get the exact counts and metrics for it. Not that you don’t need a separate planogram to match to the store. The understanding of what’s there is captured right along side the metric visualization. Now obviously, Section isn’t the grid level for the store. We often need to be much more fine-grained. In DM1, you can drill-down to the actual grid level to get a much more detailed view:

Retail Analytics: Store Detail in DM1

How detailed? As detailed as your collection system will support. We setup the grid in DM1 to match the appropriate resolution of your system. You’re not limited to drilling down, though. You can also drill up to levels above a Section. Here’s a DM1 view at the Department level:

Retail Analytics: Store Meta Data and Levels in DM1

In fact, with DM1, you have pretty much complete flexibility in how you describe the store. You can define ANY level of meta-data for each grid-point and then view it on the store. Here, for example, is where promotions were placed in the store:

Retail Analytics: Store Merchandising Data Overlay

DM1 also takes advantage of the Store Visualization to make it easy to compare stores – head to head or the same store over time. The Comparison views shows two stores viewed (in this example) at the Section Level and compared by Conversion Efficiency:

Retail Analytics: Store Comparison in DM1

It takes only a glance to instantly see which Sections perform better and which worse at each store. That’s a powerful viz!

In DM1, pretty much ANY metric can be mapped on the store at ANY meta-data level. You can see visits, lingers, linger rate, avg. time, attributed conversions, exits, bounces, Associate interactions, STARs ratio, Interaction Success Rate and so much more (almost fifty metrics) – mapped to any logical level of the store; from macro-levels like Department or Floor all the way down the smallest unit of measurement your collection system can support. Best of all, you define those levels. They aren’t fixed. They’re entirely custom to the way you want to map, measure and optimize your stores.

And because DM1 keeps an historical database of the layouts and meta-data over time, it provides simple, accurate and easily intelligible trending over time.

I love the store visualization capability in DM1 and I think it’s a huge advance compared to heat-maps. As an analyst, I can tell you there’s just no comparison in terms of how useful these visualizations are. They do so much more and do it so much better that it hardly seems worth comparing them to the old way of doing things. But here it is anyway:

DM1 Retail Analytics Store Visualization Advantages

DM1’s store visualization is one powerful analytic hammer. But as good as they are, this type of store visualization doesn’t solve every problem. In my next post, I’ll show how DM1 uses another powerful visual paradigm for mapping and understanding the in-store funnel!

[BTW – if you want to see how DM1 Store Visualization actually works, check out these live videos of DM1 in Action]

Creating a Measurement Language for the Store

Driving real value with analytics is much harder than people assume. Doing it well requires solving two separate, equally thorny problems. The first – fairly obvious problem – is being able to use data to deepen your understanding of important business questions. That’s what analytics is all about. The second problem is being able to use that understanding to drive business change. Affecting change is a political/operational problem that’s often every bit as difficult as doing the actual analysis. Most people have a hard time understanding what the data means and are reluctant to change without that understanding. So, giving analysts tools that help describe and contextualize the data in a way that’s easy to understand is a double-edged sword in the best of ways – it helps solves two problems. It helps the analyst use the data and it helps the analyst EXPLAIN the data to others more effectively. That’s why having a rich, powerful, UNDERSTANDABLE set of store metrics is critical to analytic success with in-store customer tracking.

Some kinds of data are very intuitive for most of us. We all understand basic demographic categories. We understand the difference between young and old. Between men and women. We live those data points on a daily basis. But behavioral data has always been more challenging. When I first started using web analytics data, the big challenge was how to make sense of a bunch of behaviors. What did it mean that someone viewed 7 pages or spent 4.5 minutes on a Website? Well, it turned out that it didn’t mean much at all. The interesting stuff in web analytics wasn’t how many pages a visitor had consumed – it was what those pages were about. It meant something to know that a visitor to a brokerage site clicked on a page about 529 accounts. It meant they had children. It meant they were interested in 529 accounts. And depending on what 529 information they chose to consume, it might indicate they were actively comparing plans or just doing early stage research. And the more content someone consumed, the more we knew about who they were and what they cared about.

Which was what we needed to optimize the experience. To personalize. To surface the right products. With the right messages. At the right time. Knowing more about the customer was the key to making analytics actionable and finding the right way to describe the behavior with data was the key to using analytics effectively.

So when it comes to in-store customer measurement, what kind of data is meaningful? What’s descriptive? What helps analysts understand? What helps drive action?

The answer, it turns out, isn’t all that different from what works in the digital realm. Just as the key to understanding a web visit turns out to be understanding the content a visitor selected and consumed, the key to understanding a store visit turns out to be understanding the store. You have to know what the shopper looked at. What was there when they stopped and lingered. What was along the corridor that they traversed but didn’t shop. You have to know the fitting room from the cash-wrap and an endcap from an aisle and you have to know what products were there. What’s more, you have to place the data in that context.

Here’s what the data from an in-store measurement collection system looks like in its raw form, frame by frame:


That’s a visit to a store. A little challenging to make sense of, right?

It’s our job to translate that into a journey with the necessary context to make the data useful.

That starts by mapping the data onto the store:

store journey analytics

By overlaying the measurement frames, we can distinguish the path the user took through the store:


With simple analysis of the frames, we can figure out where and when a customer shifted from navigating the store to actually spending time. And that first place the shopper actually spends time, has special significance for understanding who they are.

In DM1, the first shopping point is marked as the DRAW. It’s where the shopper WENT FIRST in the store:storeFrame2

In this case, Customer Service was the Draw – indicating that this shopping visit is a return or in-store pickup. But the visit didn’t end there.

Following the journey, we can see what else the customer was exposed to and where else they actually spent time and shopped. In DM1, we capture each place the shopper spent time as a LINGER:


Lingers tell us about opportunity and interest. These are the things the shopper cared about and might have purchased.

But not every linger is created equal. In some places, the shopper might spend significantly more time – indicating a higher level of engagement. In DM1, these locations are called out on the journey as CONSIDERS:


Having multiple levels of shopper engagement lets DM1 create a more detailed picture of the shopper and a better in-store funnel. Of course, one of the keys to understanding the in-store funnel is knowing when a shopper interacts with an Associate. That’s a huge sales driver (and a huge driver – positive or negative – to customer experience). In DM1, we track the places where a shopper talked with and Associate as INTERACTIONS. They’re a key part of the journey:


Of course, you also want to know when/if a customer actually purchased. We track check-outs as CONVERSIONS – and have the ability to do that regardless of whether it’s a traditional cash-wrap or a distributed checkout environment:


Since we have the whole journey, we can also track which areas a customer shopped prior to checkout and we’ve created two measures for that. One is the area shopped directly before checkout (which is called the CONVERSION DRIVER) and the other captures every area the customer lingered prior to checkout – called ATTRIBUTED CONVERSIONS.


To use measurement effectively, you have to be able to communicate what the numbers mean. For the in-store journey, there simply isn’t a standardized way of talking about what customers did. With DM1, we’ve not only captured that data, we’ve constructed a powerful, working language (much of it borrowed from the digital realm) that describes the entire in-store funnel.

From Visits (shopper entering store), to Lingers (spending time in an area), to Consideration (deeper engagement), to Investment (Fitting Rooms, etc.), to Interactions (Associate conversations) to Conversion (checkout) along with metrics to indicate the success of each stage along the way. We’ve even created the metric language for failure points. DM1 tracks where customers Lingered and then left the store without buying (Exits) and even visits where the shopper only lingered in one location before exiting (Bounces).

Having a rich set of metrics and a powerful language for describing the customer journey may seem like utter table-stakes to folks weaned on digital analytics. But it took years for digital analytics tools to offer a mature and standardized measurement language. In-store tracking hasn’t had anything remotely similar. Most existing solutions offer two basic metrics (Visits and Dwells). That’s not enough for good analytics and it’s not a rich enough vocabulary to even begin to describe the in-store journey.

DM1 goes a huge mile down the road to fixing that problem.

[BTW – if you want to see how DM1 Store Visualization actually works, check out these live videos of DM1 in Action]