Case Studies Improving Store Performance by Understanding Traffic & Conversion

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	Improving Store Performance by Understanding Traffic & Conversion

Improving Store Performance by Understanding Traffic & Conversion

Technology Category	Analytics & Modeling - Predictive Analytics Analytics & Modeling - Real Time Analytics Functional Applications - Remote Monitoring & Control Systems
Applicable Industries	Retail
Applicable Functions	Business Operation Sales & Marketing
Use Cases	Retail Store Automation
Services	Software Design & Engineering Services System Integration
Challenge	Historically, Goodwill Southern California never had a way of accurately measuring visitors – store traffic– to its stores, and as such was unable to calculate basic retailing operational metrics like conversion. Point-of-Sale data pointed out transactions in both units and dollar values, but data was incomplete and out of context without corresponding store traffic data sets. As a result, store operations were left without definitive levers to push and pull upon to deliver results. For example, if a day was unseasonably warm and both sales and sales transactions were down, an anecdotal connection could be made, but without traffic and conversion data, no corrective actions could be planned - it’s not like store managers could affect the weather. Read More
About Customer	Since 1916, Goodwill Southern California’s mission has been to transform lives through the power of work, serving differently-abled and disadvantaged communities, as well as local businesses. With 78 locations throughout the greater Los Angeles area, Goodwill Southern California stores deliver the 5th highest revenue across the Goodwill Industries network. Read More
Solution	Early in 2017, Goodwill Southern California deployed RetailNext’s Traffic 2.0 traffic counting solution in each of its 78 store locations, part of its Phase One deployment and a key component in evolving its retail business. For future phases, Goodwill Southern California will incorporate additional functionalities and capabilities of RetailNext’s comprehensive SaaS platform to grow each store’s business, including: Shopper age and gender demographics, Percentage of shoppers who are repeat visitors, as well as frequency of those repeat visits, Duration of shopping visits, Full Path Analytics, determining where shoppers go (and don’t go) within the store. “RetailNext’s smart store analytics allows us to build systems and processes around protecting and even increasing conversion, and the increased visibility into traffic, conversion and other performance metrics allows us to better focus on our continuous improvement projects.” Ray Tellez, vp of retail operations, Goodwill Southern California. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Analytics & Modeling - Real Time Analytics

Functional Applications - Remote Monitoring & Control Systems

Applicable Industries

Retail

Applicable Functions

Business Operation

Sales & Marketing

Use Cases

Retail Store Automation

Services

Software Design & Engineering Services

System Integration

Challenge

Historically, Goodwill Southern California never had a way of accurately measuring visitors – store traffic– to its stores, and as such was unable to calculate basic retailing operational metrics like conversion. Point-of-Sale data pointed out transactions in both units and dollar values, but data was incomplete and out of context without corresponding store traffic data sets. As a result, store operations were left without definitive levers to push and pull upon to deliver results. For example, if a day was unseasonably warm and both sales and sales transactions were down, an anecdotal connection could be made, but without traffic and conversion data, no corrective actions could be planned - it’s not like store managers could affect the weather.

About Customer

Since 1916, Goodwill Southern California’s mission has been to transform lives through the power of work, serving differently-abled and disadvantaged communities, as well as local businesses. With 78 locations throughout the greater Los Angeles area, Goodwill Southern California stores deliver the 5th highest revenue across the Goodwill Industries network.

Solution

Early in 2017, Goodwill Southern California deployed RetailNext’s Traffic 2.0 traffic counting solution in each of its 78 store locations, part of its Phase One deployment and a key component in evolving its retail business. For future phases, Goodwill Southern California will incorporate additional functionalities and capabilities of RetailNext’s comprehensive SaaS platform to grow each store’s business, including: Shopper age and gender demographics, Percentage of shoppers who are repeat visitors, as well as frequency of those repeat visits, Duration of shopping visits, Full Path Analytics, determining where shoppers go (and don’t go) within the store. “RetailNext’s smart store analytics allows us to build systems and processes around protecting and even increasing conversion, and the increased visibility into traffic, conversion and other performance metrics allows us to better focus on our continuous improvement projects.” Ray Tellez, vp of retail operations, Goodwill Southern California.

Impact #1	Through the initial phases of deployment, Goodwill Southern California has discovered store conversion hovers around 40 percent, and now, for the first time, shopper data is empowering the organization to develop proactive plans, systems and processes around protecting conversion.
Impact #2	By accurately understanding store traffic by day and hour, store managers better optimize staffing to allow for the highest levels of selling service.
Impact #3	Additionally, by comparing stores, management has identified specific growth opportunities. One store, blessed with a great manager and historically returning double-digit increases year-over-year in sales, was identified as not falling in the upper echelon of stores relative to conversion, and action plans have been developed to increase conversion in the store to par or above, thus boosting overall sales.

Impact #1

Through the initial phases of deployment, Goodwill Southern California has discovered store conversion hovers around 40 percent, and now, for the first time, shopper data is empowering the organization to develop proactive plans, systems and processes around protecting conversion.

Impact #2

By accurately understanding store traffic by day and hour, store managers better optimize staffing to allow for the highest levels of selling service.

Impact #3

Additionally, by comparing stores, management has identified specific growth opportunities. One store, blessed with a great manager and historically returning double-digit increases year-over-year in sales, was identified as not falling in the upper echelon of stores relative to conversion, and action plans have been developed to increase conversion in the store to par or above, thus boosting overall sales.

Benefit #1	Store conversion hovers around 40 percent.

Benefit #1

Store conversion hovers around 40 percent.

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Overview

Improving Store Performance by Understanding Traffic & Conversion

Operational Impact

Quantitative Benefit