How to Optimize Your Consumer Electronics Store by Using Retail Analytics?
Today, consumer electronics retailing customers are expecting more and more in their shopping experience. And this expectation makes continuing traditional business hard, even for the big global companies. With increasing competition, the rise of multi-channel shopping; attracting customers becomes important for retailers. Obtaining their loyalty to the firm becomes a problem that each department should keep in mind.
In the consumer electronics retailing sector, competition is harder than other retail categories. The product range of the consumer electronics sector is enormous. The price differences are significant for customers, so with low prices, consumers are more prone to buy online.
To increase the efficiency in the store, to increase the sales, to stand out from the crowd, and to improve the consumer experience in the store; offering competitive advantage is a matter to think through. This idea can seem like an unrealizable duty at first glance, but with the use of technology, simple changes that have the most profound effects upon the consumers can be realized effectively.
With the help of technology like heat mapping technology, analytics-based solutions; new tools are provided for the retailers to enhance customer experience and gain loyal customers. Retail analytics provide substantial analytical data, such as inventory levels, consumer demand, customer preferences. The utilities that retail analytics offers to consumer electronics retailer can be listed as follows:
- Marketing & Pricing
- Staff Management
- Checkout Line Optimization
- Stock Optimization
- SKU Range Management
- Store Space Optimization
- Campaign Optimization
Consumer electronics retailers have stores that consist of many categories at many price levels. However, the consumer electronics retailing market includes five key categories: consumer electronics (video and audio products); home office (PCs, notebooks, netbooks, tablets, mobile phones); appliances; entertainment hardware and software; and services.
The prices and product groups are differentiating from each other in many ways. For example, cell phone accessories and televisions are in the same store, but these products have different features. TVs need more space for displaying. Cell phone accessories are products that have low prices. Action areas in consumer electronics shops are matters to customers because experiencing the product is essential for this sector. It is a competitive advantage of brick and mortar than e-commerce. Analyzing and predicting customer behavior gives a considerable benefit to retailers to do a campaign at the right time and right place. Retail analytics provide essential metrics for consumer electronics retailers. The data that is collected by using retail analytics can show customer behaviors based on specific areas. It’s easier to give the shopper the ideal customer journey by setting the design of your store, product layout, and promotions depending on the shopper preferences. Moreover, you can count your shoppers, discover the yearly, monthly, weekly, daily, and hourly traffic of your consumer electronics store, conversion rate, the optimum basket size. Analyzing these data helps you increase your profits and gain loyal customers.
Customer behaviors are critical metrics for retailers. Customers are sensitive to price differentiation when they want to buy a product in the range of consumer electronics. Retail analytics helps you to monitor the impact of your promotions and increase the efficiency of your marketing strategy by using these data. You also can evaluate the effin your shop, such as advertising areas, action areas. You can detect which of your show screen is more attractive to customers. Furthermore, analyzing customer quantity and spent time in the department, marketing strategies can be optimized.
In stores, staff quantity and staff qualifications are an essential factor that helps to get customer satisfaction. By retail analytics, you can detect busy areas and rush hours so you can relocate your staff according to this data. By this, your customers always have a pleasant experience in your store. Also, qualified staff can guide the customer about the product in the right way. It increases the possibility of sales. Retail analytics helps to track where personals spend their time, how many customers they interact with, how long do the interaction, and how many of them buy the product.
Checkout Line Optimization
The waiting period on the checkout lines is a problem for the shoppers. Waiting in the queues of the store causes the potential sale to lose as well as damage the company’s reputation. It causes the store to fall back in the next shopping preferences of customers. With the help of retail analytics, waiting times, and checkout densities are analyzed, staff managers are instantly informed in case of a crowd intensity. Different types of waiting lines can be tried in the store and see which one is more efficient. Customer behaviors can be examined to give campaigns at products sold around the checkout area.
Retail analytics provides your products selling rate so you can predict what time your products are going to be out of stock. Out of stock scenarios lead to a loss of potential sales. Also, it means the store to fall back in the next shopping preferences of customers.
SKU Range Management
As it is said, the product range is extensive in customer electronics retail. Retail analytics helps you to optimize the store’s product range by analyzing customer behaviors. You can decide which product should be prioritized in that product range according to customers’ spent time in each area.
Store Layout Optimization
Nowadays, retailers are minimizing their store to compete with e-commerce. For decreasing rental fees, consumer electronics retail shops should optimize their stores’ areas. With the help of retail analytics, the busy areas and dead points can be detected. You can take action to increase the efficiency of the store’s dead spots. Correlation between departments can be analyzed, and the layout plan can be optimized according to this data. Areas of departments can be set in order to obtain the most efficient customer journey.
Also, supplier areas can be organized and charged according to customer footfall and spent time. It provides numeric data when you charge supplier areas.
In consumer electronics retail, action areas are significant for customers because customers want to experience a product before they buy it. If their experiences are pleasant, the probability of buying is increased. With the help of retail analytics, you can analyze the interaction and spent time in these areas. According to data, action areas can be optimized.
Consumer electronics retailers have many campaigns in a year. With the help of retail analytics, customer behavior can be detected during the campaign period. Correlations can be determined by analyzing in-store department-based traffics during campaign periods. According to this data, you can optimize your campaign strategy step by step. You can check out our blog if you want to know how can Udentify optimize your campaigns.
Briefly, retail analytics provides consumer electronic retail a lot of features and advantages; thus, consumer electronics retailers should use in-store analytics to increase store profitability.
Did you check our business intelligence solution with Retail Analytics Solutions? You can start using Udentify that analyzes the costumers’ behaviors at the brick and mortar shops. Udentify provides local conversion rate, head counting, heat maps, and order analysis. Thanks to the computer vision technology, it can follow the customers anonymously, with which it gives meaning to the data that is gathered from the tracking by converting them to statistical models. It enables company managers to take data-oriented decisions by its management interface.