Cisco Blogs


Cisco Blog > Retail

Achieving a 3D View of Your Shoppers

If every click made by a shopper on an online store can be considered valuable information, surely every step taken by a shopper in a physical store is also a similar wealth of data. While clearly this is valuable input that many stores would like to have, the means to collect and process it is not available everywhere. This fact has resulted in a significant gap in the information available in an online as opposed to a physical store.

Can the power of Internet of Everything and real-time analytics bridge this gap? Can it help capture the shopper behaviors using sensors in the store? Can real-time analytics at the edge transform this data into shopper insights?

Yes indeed. While we see the need for granular and enhanced analytics, we clearly see that many physical store retailers are yet to start their journey in capturing such shopper insights. Let’s take a 3D view of your shoppers.

3D-shopper-view-Rajesh-blog

You need to gather:

Door Traffic: This is the total traffic coming into your store. This metric is very valuable for understanding loyalty, conversion, staffing needs, and much more use cases as highlighted in the Cisco white paper on Retail Analytics. By filtering new and repeat visitors, we can understand your shopper’s loyalty – but when we bring together this data with point of sale data, it helps us to understand conversion. When we correlate this with marketing campaigns, it helps you get a sense of your store’s and campaign’s effectiveness.

Dwell Time: This is the time that your shoppers are spending in the store and in different areas of the store. It highlights the engagement of shoppers with your products and displays. For example, this metric can be used to understand products that are getting more attention from your shoppers, or can be used to determine more advanced metrics, such as balk rates and predicted wait times.

Demographics: This is the breakdown of segments among your shoppers. The granularity of this data can vary and can provide insights for customer segmentation and the ever changing dynamics of your shoppers, helping you to match shopper preferences and targeted promotions.

While there are no questions about the value of these data to the retailers, achieving it is currently a challenge due to the combination of technologies and sensors required to capture them precisely, effectively, and economically.

The Cisco Connected Analytics for Retail solution focuses on making this journey easier for retailers to capture the data and derive insights. Leveraging Wi-Fi, video, social, PoS, and other sensor data, and bringing together the power of real-time edge analytics, the solution provides retailers a 3D view of their shoppers.

If you are attending Cisco Live 2015 at San Diego, come by to check out the Connected Analytics for Retail solution demo in the World of Solutions pavilion. I look forward to seeing you there!

Tags: , , , , , , , , , ,

Why Your In-Store Web, Mobile, and Video Experiences Matter

The lines between offline and online experiences are blurring. Customers no longer go online, they are online 24/7, and that includes inside your stores. In fact according to recent Google research, 89% of smartphone users leverage their smartphones while shopping in stores. And close to 70% of those used it to look at the retailer’s site and 21% look at apps.

Furthermore, according to Laura Wade-Gery, executive director of Multi-channel eCommerce for Marks & Spencer, “Shoppers who shop on our website as well as in our stores spend four times as much; throw smartphones into the mix and they spend eight times as much.” Enabling web, mobile, and video experiences in the store represents a huge opportunity – whether it is interactive, connected digital signage; Wi-Fi; employee-focused endless aisle apps; and so on.

Yet the majority of our customers face the reality that digital innovation is overwhelming their enterprise network. Everything from web apps, HD video, software updates, mobile apps, and even digital signage are traversing the network eating up valuable bandwidth. In addition, most retailers subscribe to doing more with less – particularly when it comes to IT – so upgrading enterprise network bandwidth across every store every few years is often just not viable, both from a budget and agility perspective. That is not to mention that a lot of Cisco customers can’t upgrade their bandwidth due to store location even if they wanted to.

image01

But bandwidth constrained enterprise networks are only one side of the story. Latency is the other, whether caused by distance or amplified by enterprise network architectures such as backhauling Internet traffic over the WAN through the datacenter and out to the Internet. Currently, the vast majority of retailers use this network topology for store Internet access.

image11

And as we all know, high latency is particularly detrimental to web application performance.

image05

Just look at the difference in latency and bandwidth between in-store and residential Wi-Fi. In fact, latency for in-store Wi-Fi is higher than latency for LTE.

image00

The bottom line is that congested, high-latency, low bandwidth enterprise networks result in slow HTTP applications, video, and software updates.

image04

And we all know that video or apps that are slow or not working properly are bad for business. There has been plenty of research highlighting the fact that as web apps get slower, conversion rates decrease, abandonment rates increase, and employee productivity plummets.

image09

In other words, slow apps – whether inside or outside the store – equals unhappy customers and unproductive employees. The answer to this problem? Retailers need to focus on accelerating HTTP/S applications, video and software updates while maximizing enterprise network bandwidth to ensure fast, high-quality experiences to all of your end users.

To learn more, be sure to register to join us on June 16 for a free one-hour webcast.

Tags: , , , , , , , , ,

Analytics Opens a Window into Each Shopper’s Journey

The key to retail today is customer understanding —where each customer stands on his or her personal shopping journey, whether in-store or out. Retailers must “know” each shopper as never before. And they must offer the kinds of contextual, personally relevant experiences that will optimize their merchandise mix, create faster inventory turns, and drive greater customer engagement.

Yet, as a recent Cisco study revealed, offline retailers – or retailers that combine on and offline capabilities – have their own unique advantages – if they step up to the opportunities of the Internet of Everything (IoE) economy. By blending the benefits of the physical store — such as the ability to touch, compare, and try on products — with the benefits of the virtual world, retailers can create a new value proposition that can’t be matched by their online-only competitors. In the process, they not only drive their own industry’s disruption but challenge for market leadership.

Learn more by reading Mala Anand’s blog here.

Tags: , , , , , ,

Analytics Opens a Window into Each Shopper’s Journey

The key to retail today is customer understanding —where each customer stands on his or her personal shopping journey, whether in-store or out. Retailers must “know” each shopper as never before. And they must offer the kinds of contextual, personally relevant experiences that will optimize their merchandise mix, create faster inventory turns, and drive greater customer engagement.

After all, the typical customer today is mobile, connected, and has heightened expectations. Many are accustomed to a deeper level of real-time interaction from innovative online retailers than from traditional brick-and-mortar stores.

Yet, as a recent Cisco study revealed, offline retailers – or retailers that combine on and offline capabilities – have their own unique advantages – if they step up to the opportunities of the Internet of Everything (IoE) economy. By blending the benefits of the physical store — such as the ability to touch, compare, and try on products — with the benefits of the virtual world, retailers can create a new value proposition that can’t be matched by their online-only competitors. In the process, they not only drive their own industry’s disruption but challenge for market leadership.

Read More »

Tags: , , , , , , , , , , , , , ,

To Compete in the Retail Revolution, Mobility and Analytics Are Critical

Today, mobile devices are everywhere — and vying for the attention of just about everyone. On a train, in a café, or in the park, people are gaming, connecting with far-away friends, and watching TV shows.

Increasingly, they are also researching, browsing, and buying products.

Such tech-savvy mobile shoppers are driving a retail revolution that has left many brick-and-mortar retailers scrambling to catch up. In fact, mobility and apps have created an industry disruption similar in scope to what we saw with e-commerce in the late 1990s and early 2000s.

For many traditional retailers, the stakes are high and the challenges daunting. However, I see tremendous opportunities. Read More »

Tags: , , , , , , , , , , , , ,