Time to introduce new metrics in-store

by Glynn Davis on July 11, 2016 in K3 Viewpoint

Brought to you by Retail Insider and K3 Retail

As the customer experience in-store becomes so much more than just about flogging goods to anybody who crosses the threshold there is a need for different ways of measuring performance.

Retailers are now starting to incorporate much more technology in-store including tablets and smarter Point-of-Sale devices for rich ‘clientelling’ activity that can massively enhance the experience of customers. This is driving the need for retailers to look differently at how they measure successful customer engagement.

Retailers need to up the ante

Historically there has been massive credence – and rightly so – given to sales per square foot and like-for-like sales metrics but these are becoming less valuable. While it is fair to say that measuring actual sales will never disappear the fact is that the sooner retailers start to incorporate other key performance indicators (KPIs) the better because there is now a need to concentrate more on the customer journey and the experience being delivered in-store.

Retailers need to be considering measuring things such as: how engaged are their shoppers; the length of time that they are spending in the store; and other customer behavioural aspects. It is becoming much more about how much of a customers’ time the retailer can own. Rather like the way food retailers measure share of stomach there will be a need to look at share of customers’ shopping time.

With Wi-Fi and other technologies like Beacons, NFC and digital CCTV being pushed into stores there is now much more capability for retailers to be able to measure the movement of people in their outlets.

By harnessing the data from these devices there is a real opportunity for retailers to start to investigate how they can introduce new metrics that will ultimately deliver an enhanced experience for their customers rather than just focusing on how to drive the next sale.