case study electronics€¦ · retailer profile the case study is for a leading mobile retailer who...

RetailerProfileThecasestudyisforaleadingmobileretailerwhosellsmobilephonesandelectronics,aswellasmobile,broadbandandfinancialservices.TheCompanyhasover3,000storesinCISandEE,onhighstreets,retailparksandshoppingmalls,withstoreformatsrangingfrom50squaremetersto250squaremetersforflagshipstores..ChallengesAfterscopingouttheretailer’sideasforneededoperationalimprovements,thefollowinghighpriorityissueswereidentified:

• Seasonalmerchandisingplanswithmonthlychangesaremadewithouttrackingeffectiveness

• Lowcrossshoppingisbelievedtooccurbetweenassociatedzones

• Inadequateresourcedemandplanningandschedulingimpactsoperationalcostsandcustomerservices

• Ineffectiveloyaltyprogram,lowcustomerregistrationandinterestknowledgemeansretentiontacticsaredifficulttoimplement

• Ineffectiveloyaltyprogram,lowcustomerregistrationandinterestknowledgemeansretentiontacticsaredifficulttoimplement

• Highchurnrateinspecificcustomersegmentsthatareofhighvaluemeanscorecustomerbaseismigratingtocompetitorstores

• Massmarketingtactics,withoutpersonalizationandtargetedmessagingresultsinlowconversionratesonpromoitems.

SolutionThesolutioninvolvedinstallingSMIsensor-routersin15storestotest,atfirstphase,howSMIcangiveinsightintoshopperbehaviorinordertoimprovetheoperationandthecustomerexperience.ThesecondphaseincludedtheimplementationoftheSMIOmniChannelsolutioninordertoregistercustomersonthenetworkformoreeffectiveCRMandmarketingbefore,duringandaftertheshoppingjourney.Thesolutiondeploymenttookplaceover3monthswithagreeduponobjectiveswiththeclientintheareasofOperations,Merchandising,andMarketing.MerchandisingandShopperJourneyAnalyticsgoals

• Customerandstorecentricplanogramsthatareadaptedtoshoppinginterests

• Analyzinghowcurrentandfutureplanogramsaredrivingtrafficthroughthestoreintheoptimalmanner–measureshoppers/sqmandreturnonspaceforzones

• Pathflowanalyticsandheatmapsonshoppingactivityatzonelevelatvariousdaysandstoretimes

• Improvingserviceareassuchascashlanesthatbecomecongestedandhavelongqueuesatpeakdemandtimes

• Identifyingzones(departments)whichhavehigh%ofcustomerswholeftthestorewithoutbuying

• Discovertrafficandproductinterestpatternsforcreatingattitudinalcustomersegmentation

• Identifyzonerelationshipsandzonesthatareshoppedbycustomersegmentsbeforeandaftervisitingotherzones

CRMandOmniChannelMarketinggoals

• RegisteringcustomersviaFreeWIFIaccessanddataminingcustomerprofileswithtrafficpatternsandpurchasesmade(customer’smobileMACaddresslinkedtoloyaltyID)

• Providestoreemployeesinformationoncross-sellingopportunitiesforindividual

AboutSMI’sCRMOmni-channelsolutionforbricksandmortarstores Significantfinancialgainsfromimprovedmarketing,CRMandstoreoperationsStoresimplementingShareMyInsight’sin-storetrackingandmarketingsolutionshavereapedfastgains:9%higherconversionsonmarketingpromos,12%increaseoncross-selling,6%morerepeatvisitsandmore.RetailerswhohaveengagedCPGsforpersonalizedcampaignmessagesthatconnectabrandtoindividualconsumers,haverealizedmorethan10XrevenuesfromCPGsponsoredadsovertheSMIsolutioncost.

• Increasethenumberofpersonalinteractionsbetweenemployeesandcustomers

• In-storetrackingalertsmanagertocustomersshowroominginthestore(lookingonlineonspecifiedsites)

• Communicationstargetedtosegmentswithahigh%ofprobableresponserate

• Omni-channel,personalizedads,andpromotionofferstocustomersduringtheshoppingjourneyversusmassmarketingcampaigns

• Customerprovidedwithwelcometextandsplashpagewithpersonalizedoffer,announcementwhenloggingintofreeWifi

BenefitsandForecastedGains• Engineeredstorelayoutplanstodrivetraffictoselectedunderperformingzones(nonvisitedshoppingareas)andincreasedvisitsby3%

• Improvedzone(dept.)ReturnonSpacebyupto2.5%withincreasedshoppingtime

• Betterresourceplanningwithlowercoststoensureoptimalnumberofsalesassistantsontheflooratdifferenttimes

• Increasedshoppervisitstospecificzonestargetedduringpromcampaignsbyupto50%

• Increasedsalesconversionsonpromoitemsbyover25%

• Increasedvisitrepeatrate,shoppingfrequencyby1.5%ontargetedsegments

• Decreasedbouncerate(zonesshoppedbutnotpurchased)by2%intargetedzones

• Increasedcross-shoppingbetweenzoneswithbundledpromooffersby8-15%

• Increasednumberofinteractionsbetweenstorepersonnelandcustomersby15%