Utilizing technology to unravel the mysteries of in-store customer behaviors

In the rapidly evolving retail landscape, decoding customer behavior within brick-and-mortar stores has become essential. Retailers are increasingly looking to innovate and utilise the correct technologies to remain relevant.

One such technology that is gaining traction is beacon technology. This technology is being adopted by retail companies in various sectors, such as clothing, footwear, food and beverages, electronics, and sports equipment. North America is leading the charge, driven by the demand for in-store analytics to enhance customer experience and engagement.

Beacons can be strategically placed throughout a store to capture customer behavior patterns, providing valuable insights into high traffic areas and the parts of the store where customers dwell more. This data can be used for real-time actions, combined with customer-specific data, or for post-purchase analysis when combined with transaction data.

For instance, beacons can be employed to send push notifications highlighting relevant items based on a customer's location in the store. This technology is being hailed as a means to decode 'Path to Purchase' behavior, offering retailers the opportunity to optimise their stores' floor plans.

However, the relationship between online and offline behavior is also of interest. Retail leaders are seeking to understand the correlation between a customer's clickstream and in-store 'Path to Purchase' data, particularly in the context of 'bricks and clicks' retailers who often struggle to gather similar data in-store compared to their online counterparts.

Platforms are emerging that allow retailers to map beacons to store floor plans and track a customer's path in the store. This data can be used to address questions such as whether customers who viewed a certain product in store ultimately bought that item online.

As the holiday shopping season approaches, retail leaders are keen to understand in-store consumers ahead of Black Friday, Cyber Monday, and Christmas. With footfall on Black Friday expected to be 11.5% higher than in 2014, it's clear that understanding customer behavior is key to maximising sales during this period.

Moreover, beacon technology is just the start to understanding consumer behavior and enhancing the customer experience. A combination of digital technologies, innovative business processes, and effective execution and monitoring is key to unlocking the full potential of in-store customer insights.

Questions such as whether a chaotic purchase path indicates a need for assistance from the workforce, or whether a retailer should consider 'showrooming' more items instead of offering the clothes in store, are all part of this ongoing exploration. As retailers continue to innovate and adapt, beacon technology is set to play a crucial role in shaping the future of retail.