jerryking + customer_journey   4

Supercharging retail sales through geospatial analytics
March 2019 | | McKinsey | By Rob Hearne, Alana Podreciks, Nathan Uhlenbrock, and Kelly Ungerman.

A retailer can now use geospatial analytics to understand the interactions between its online and offline channels. With these insights, it can create a higher-performing retail network.
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Is our outlet store in San Francisco hurting foot traffic and sales at our full-price store two miles away? Or is it doing the opposite—attracting new customers and making them more likely to visit both stores? How are our five Manhattan stores affecting our e-commerce revenue? Are they making consumers more likely to shop on our website or to search for our products on Amazon? If we open a new mall store in the Dallas metro area, what impact will it have on sales at our existing stores, at our department-store partners, and online?

The answers to these kinds of questions are increasingly crucial to a retailer’s success, as more and more consumers become omnichannel shoppers......most retailers don’t give adequate thought to the cross-channel impact of their stores. They rely on gut feel or on high-level analysis of aggregated sales data to gauge how their offline and online channels interact.....there’s a way for retailers (and other omnichannel businesses) to quantify cross-channel effects, thus taking the guesswork out of network optimization. Through advanced geospatial analytics and machine learning, a retailer can now generate a detailed quantitative picture of how each of its customer touchpoints—including owned stores and websites, wholesale doors, and partner e-commerce sites—affects sales at all its other touchpoints within a micromarket......US retail sales are on an upward trajectory.....despite the growth of e-commerce, the vast majority of these purchases still happened in brick-and-mortar stores. .....So why have US retailers closed thousands of stores in the past year, with thousands more closures to come?....Because the consumer journey is changing!!......Consumers are transacting in different channels....engaging across multiple channels, often simultaneously rather than sequentially. It’s critical for omnichannel retailers to have a detailed understanding of the interplay between online and offline touchpoints, and between owned and partner networks.

Quantifying cross-channel effects

the starting point is data......from a wide range of internal and external sources. Inputs into a geospatial model would ideally include not just transaction and customer data but also store-specific details such as store size and product mix; site-specific information such as foot traffic and retail intensity; environmental data, including local-area demographics; and anonymized mobile-phone location data.......A simulation model can then quantify the sales effect of each of the retailer’s customer touchpoints on its other channels within a local market. The model must be sophisticated enough to simulate the upward or downward revenue impact of adding or removing a particular touchpoint.

Geospatial analysis reveals that the consistency and magnitude of cross-channel effects vary significantly across channel types and markets.
analytics  bricks-and-mortar  cross-channel  customer_journey  customer_touchpoints  data  e-commerce  foot_traffic  geospatial  gut_feelings  location_based_services  McKinsey  moments_of_truth  omnichannel  privacy  retailers  store_closings  security_consciousness  site_selection 
march 2019 by jerryking
iBeacons: A Marketer’s Dream or Consumer’s Nightmare? | WIRED
The iBeacons circumvent the expense of Wi-Fi and the inaccuracy of GPS targeting indoors, built into devices running iOS 7 or Android 4 or higher. They can be placed seemingly anywhere, including stores, hotels, stadiums, museums, amusement parks and airports, to guide people along their journey in real-time.

Smartphone adoption and mobile app usage provides marketers with an opportunity to engage consumers when they are near a branded location or point of interest using real-time location-specific targeting. ....Contextual relevancy is key. A grocery store shopper may seek a deal on an ingredient for a saved recipe in Epicurious, a traveler may prefer mobile check-in functionality, and a visitor to an amusement site like The World of Coca-Cola may enjoy custom frames and backdrops for family photos. While the possibilities for engagement are limitless, marketers must understand each step in the customer journey and provide contextually relevant functionality specific to the location.

For example, in April WWE used its mobile app and iBeacons to drive fan engagement at its biggest event, Wrestlemania. Fans at the New Orleans convention center could receive notifications about when and where their favorite wrestling stars would be available for autograph signings. App users benefitted from a spot in the line ahead of those not using the app.
Apple  Bluetooth  engagement  sports  contextual  Opt-In  iBeacons  indoors  hotels  stadiums  museums  amusement_parks  airports  location_based_services  customer_journey  customer_touchpoints 
may 2016 by jerryking

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