Progressive Grocer

SEP 2016

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Data Gathering Technology that can be accom- plished with transaction data, let alone the customer data. And the grocers who do analyze customer data do not have a holistic view of their customer across all touch points. So there is a massive amount of work to do to better leverage analytics in the retail grocery arena today and to untap the many oppor- tunities for growth based on an understanding of the available data." Crucial to Success While there's some disagreement about the level of sophistication of in-store analytics, there's widespread agreement about its importance to a grocer's success. "Analytics is hugely important for grocers," stresses Accenture's Gorsche. "Consumers are demand- ing more. e industry needs to understand what the consumer trends are, and analytics is the key to gathering this information. Analytics can help grocers see where technology can improve business efficiencies and reduce costs. It can help them identify the in-store experiences that will be enhanced by technology." VideoMining's Sharma agrees that in-store analytics is crucial to the success of a grocer. He likens not having in-store analytics today to hosting a website without any analytics on click-through rates and web traffic. In other words, it would be a huge competitive disadvantage. "While analytics from transaction data and loyalty cards helps grocers target promotions and understand performance, it does not provide in- sights on how to convert more shoppers into buyers and improve store performance," he says. Because research has consistently revealed that almost all purchase decisions are made in-store, experts say that knowing how those decisions are made and how to influence those decisions is ex- tremely helpful. Sharma rhetorically asks grocers: How do you redesign the store to make it easier for shoppers to navigate? How do you lay out the categories to improve the shopping experience? How do you position displays for driving impulse purchase? How do you cater to specific demographics such as Millennials or Hispanics? Capgemini's Cusick adds that knowing what shoppers need and want, and how they make their baskets, is a tremendous competitive advantage. "If we look at top- and bottom-line initiatives," she says, "in-store analytics helps remove risk by informing how to configure the store, the aisle and the shelf, and increase accuracy of execution. Shop- pers can then do their shopping more efficiently every time they come to the store, and they'll come more frequently, driving promotional ROI." Analysis is Key Ciancio believes that a strong analysis of shopper behavior helps a retailer outperform its market. In Dunnhumby's experience, understanding shopper needs and how they use the store can contribute at least 1 percent to same-store sales growth. He pro- motes good analysis as the key to differentiation and the optimizer of marketing strategies and resources. "What Kroger has done with their frequent- shopper card data analysis has allowed them to enhance their points of difference from the competi- tion, because they better understand how their heavy shoppers behave and how their lighter shoppers behave," says Scamehorn, of InContext. "ey encourage the behavior they want with deals for their frequent shoppers over time. Now they have that history of data and can employ Big Data tools to find other linkages they may not have seen with just the frequent-shopper card data initially. ese tools are taking those insights to a higher level." He explains that Walmart has data from Retail Link that provides an understanding at a highly granular level of how products move in the mega- retailer's stores. It has information on how rollback pricing can drive sales. e company has controlled its shopping environment to provide a clearer under- standing of what to do with its merchandising, and when. He points to retailers such as Meijer, H-E-B, Costco and Publix Super Markets as other examples of grocers doing a great job of identifying their re- spective customer profiles and catering to them well. e relentless advance of technology will lead the way to a better understanding of shopper behavior and how to use this gathered information effectively. Such things as in-store WiFi and beacons may not only benefit the shopper, but also obviously provide critical intelligence to the retailer about the profiles of shoppers and their routes through the store. "Online, the technology already exists to make useful suggestions based on other items in the bas- ket, but this could equally be applied in the physical store," says AJ Van Bochoven, head of retail in- novation for Boston-based Cambridge Consultants. "Overlaying video analytics from in-store cameras can add another layer of information. e bricks- and-mortar grocery store has a great opportunity to sell more by becoming an 'aggregator' for other potential purchases." PG Retailers now have an unbiased, consistent flow of information that … is allowing retailers to understand what influences purchase decisions and forge a closer connection to the shopper." —Justin Behar, Quri For more information, visit progressivegrocer.com/instoreanalytics. 154 | Progressive Grocer | Ahead of What's Next | September 2016

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