Challenge:
A luxury footwear brand experienced a significant decrease in the number of shoppers coming into its store (“footfall traffic”) after the COVID-19 outbreak. Even after taking into consideration the decrease in the total number of passersby due to the implementation of COVID-19 social distancing measures, the significant decrease in footfall was a worrisome number for the retailer. Due to the lack of retail analytics and shopper traffic data, the retailer had an incomplete understanding of visitor trends throughout this unprecedented pandemic. The retailer had no traffic data to look into when planning marketing and commercial activities, which was crucial to reviving store vitality.
Solution:
The footwear brand implemented Cyclops to develop a better understanding of traffic trends within the store given its usability and ease of implementation. Cyclops is a SaaS cloud-based AI retail analytics solution that can connect any surveillance camera to acquire, evaluate and interpret in-store data. They wanted a turnkey solution — with a user-friendly dashboard that would provide day-to-day support for its store. This partnership gave their team access to quantitative data for operational and marketing use.
Insights:
The implementation of Cyclops provided the footwear brand with easy access to its store traffic data. Compared to the traffic data in January, the passerby traffic in February decreased by 25.3%, but the footfall traffic at the store decreased by a staggering 54.1%. As a result, the walk-in rate also decreased by 2 percentage points in February compared to January. The store had to improvise a strategy to attract more shoppers to come inside the store and ultimately increase the conversion.
Outcome:
The pandemic has left many people in financial distress, which meant that shoppers were less likely to spend. To appeal to this kind of shoppers, the store decided to change the store merchandising layout and displayed products on discount near the store entrance, where passersby could easily notice. This simple change in the store layout led to an increase in the footfall traffic the following month. Passerby traffic decreased even further in March due to the ongoing pandemic, but the footfall traffic increased by 48.9%, almost catching up with the pre-pandemic level.
The retailer now has insights into its traffic, which helps shape marketing and operational decisions. This will help them tailor their operations and marketing actions and evaluate the impact of their strategies on traffic and make changes accordingly.
Cyclops is a retail analytics system that can help retailers generate insights into how their customers shop inside their stores. To understand more about how Cyclops can help retailers digitally transform their stores amid the COVID-19 pandemic, visit our website: https://dayta.ai