One of the basick checks in Retail analytics one can do by processing POS Transactional data is to verify if the size of the basket in terms of number of items shopped for in one visit to the store is increasing or decreasing. Once we find that, the trend in basket count is coming down when benchmarked with no of items in an average shoppers basket size one year back or even a quater back then we can activate 5 possible levers.
Action trigger-1 : ACTIVATE STORE LEVEL BUNDLED PROMOTIONS
Can we create a new store promotion to entice shoppers to buy more ?Can we have bundled promotions. Example if you buy a soap and a shampoo you get 2 % off the shampoo. It could be a 'gift off' ( where a consumer gets an item free with the purchase of another item ) or temporary price reduction scheme or weekend coupon promotion scheme is working well . In case of food items, can we have live sampling for food items in store which consumer normally does not purchase ? How about an SMS blast to people living within the store vicinity ?
Action trigger-2 : CHANGE MERCHANDISE MIX AFTER SURVEYING SHOPPERS
It is conceivable that consumers come to our store and do not find specific items which they would like to purchase. A simple survey can be administered to shoppers to find out "What is it that you would like to see in our store ?". If there are common items which are occuring frequently in the response then the merchandise mix can be changed in the store to include the most frequently requested item by shoppers which is currently not displayed in our shelves.
Action trigger-3 : CHANGE SHELF PLACEMENT AND VISIBILITY STRATEGY
In some cases it has been found that even though the SKU ( Stock keeping unit) is present in the store, shoppers do not purchase it because it is 'buried' deep in some corner shelf and not easily visible to the eye. A simple planogram multivariate data analysis can reveal co-relations between shelf placement ( At eye level, Below eye level, Above eye level, near POS counters ) and its effect on the items purchased by a shopper during a visit.
Action trigger-4 : INTRODUCE LOYALTY CARD AND HAVE BEHAVIOR BASED RECOMMENDATION ENGINE
In order to track a customers specific behavior in terms of visit frequency, average spend, dispersion of spend across multiple product categories, recency of visit etc it is important that a loyalty card program be instituted. Once this is done we can use the torrent of purchase behavior transactions to create a behavior based recommendation engine. Techniques like collaborative filtering and market basket analysis can be used to derive cross sell recommendations. Once this engine gets trained on past purchase behavior it can be used to derive the top 5 recommendations for each of the loyalty card customer based on past behavior exhibited. This surgical approach has a greater chance of stimulating increase in basket count as opposed to 'carpet bombing' them with a generic recommendation on product
The competitive stores within the immediate 3-4 mile vicinity of our store are offering the same items at a higher cost. Shoppers find our store competitively priced for the items they shop .
Action trigger-5 : Incentivise staff based on customer recommendation and increasing store staff per 100 square feet of store space
There have been scenarios un earthed in stores where a customer comes to the storeand cannot find knowledgeable staff who can guide her on finding certain products . This problem can be alleviated by dynamically increasing the number of staff dynamically based on footfall observed during different shifts, ensuring store staff are sensitized to customers needs and incentivising store staff who have been recommended by shoppers who found the staff courteous and helpful
Action trigger-6 : NEGOTIATE VOLUME DISCOUNTS WITH VENDORS
If a competitor store in the vicinity offers SKU's at a price point below our store, then there is an opportunity to show past purchase and POS volume for the vendors SKU and negotiate a volume based discount which ensures that our store is competitive in terms of price for an item displayed resulting in the shopper purchasing the SKU and ensuring no dip to average basket count from our stores
Depending upon the dynamic nature of the market and competitive activities, one or more of the above levers can be used in conjunction to ensure that as a store manager one is able to manage a upward trend in the average no of items purchased per shopping visit
Grow: Notes from Session 6 of TEDNext 2024
3 weeks ago
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