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Retailers are increasingly focusing on analyzing not just the in-store traffic but also the foot traffic outside their stores, according to a recent insight by Tom Gleeson, CEO of Kepler Analytics. This concept, known as surrounding store traffic, is helping retailers gain a deeper understanding of potential shoppers' behaviors and preferences even before they enter the store.
Retailers traditionally lacked insights into the volume of potential shoppers in their vicinity. However, with 35% of consumers visiting stores with the intention of shopping, the opportunity to attract these discretionary spenders is significant. By analyzing the foot traffic around their stores, retailers can now assess their share of traffic compared to nearby competitors, providing crucial insights into their market position and performance relative to their location.
Understanding patterns of shoppers not only within but also around their stores allows retailers to develop targeted strategies to attract more foot traffic and convert it into sales. This data-driven approach supports retailers in making informed decisions about store formats, experiences, product offerings, and strategic investments in regions with the potential to increase market share.
The real-time nature of surrounding store traffic analysis offers advantages in optimizing store tactics, marketing approaches, visual merchandising, and promotional activities. It enables continuous adjustments and testing to understand what attracts shoppers, akin to measuring online impressions.
When combined with in-store foot traffic data, retailers obtain a comprehensive view of the entire shopper journey, allowing them to identify where potential customers are dropping off and refine their engagement strategies accordingly. This holistic view of store performance enables retailers to take effective actions to entice shoppers and gain a competitive edge.
Research from various sources supports the importance of understanding both in-store and surrounding store traffic. For instance, studies have shown that physical stores with high external visibility and accessibility tend to attract more walk-in customers, underscoring the value of strategic store placement and exterior store design.
Furthermore, leveraging technology to analyze surrounding store traffic can provide insights into peak shopping times, shopper demographics, and the effectiveness of outdoor advertising and window displays. This level of analysis is crucial for retailers aiming to thrive in the ever-evolving retail environment, emphasizing the need for a comprehensive understanding of both in-store and external consumer behaviors to boost the bottom line.
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