vm unleashed-vm analytics: discovering your stores

a unique approach to measuring

in-store customer behaviour using

IP cameras & analytics technology

discover the new store experience KPIs

discover zone engagement, dwell & dwell conversion

VMAnalytics!analytics into answers into actions

VMAnalytics! answers into actionsfrom VM-unleashed!

from VM-unleashed!

discover zone engagement, dwell & dwell conversion

measure and manage customer traffic flow

increase promotional engagement & conversion

maximise the return on new store investments

identify & solve specific store problems

increase conversion through product display

justify and optimise the role of visual merchandising

customise your counting, measure your success,meet your objectives

Why VMAnalytics?The new store experience KPIs for the commercial success

Retail is DetailFor most developed retailers the

“big-wins”of sales and profit

improvement have already been

achieved in the evolution of the

business.

Further commercial increases will

now come from incremental

advancements of many elements

that together impact on the

overall store performance

figures.

Traditional store data analysis is

limited to sales, traffic and

conversion rates for any store,

and is sadly lacking in any

detailed measurement of how

that conversion is achieved.

VMAnalytics allows retailers to

measure and benchmark

important, but previously hidden,

store experience KPIs and to see

How do we traditionally measure & improve store performance?

• Experience counts for a lot when it comes to making decisions

on how to improve the store performance.

• However even with the benefit of experience, major decisions and store

investments are made with alarmingly little knowledge about

what is happening inside our stores

• Some competitor benchmarking

• A degree of shrewd decision-making

• Some “gut feeling”

• A varying amount of luck

• Even more worryingly, when things do go well, it is still not always easy

to measure or know what is was that caused the improvement.

From “Poverty to Authority”- the new store experience KPIs

• VMAnalytics measures not only traditional store conversion rates

but never seen before store experience KPIs such as:

Department traffic - % of /amount of traffic that visits departments

Circulation –flow of traffic around stores, departments & areas

Area Traffic - % of/amount of store traffic that goes to store areas

Attraction - % of/amount of area traffic that visits specific displays


store experience KPIs and to see

for the first time where specific

improvements to these figures

will lead to overall sales

performance increases.

Attraction - % of/amount of area traffic that visits specific displays

Browse Time - Average time spent engaging with specific displays

Browse Conversion rate - % of people who browse at a display,

handle a specific product that then buy.

• It is the measurement of these “Customer Journey KPIs”and the

actions taken to improve the “Purchase Funnel”that will build

into improved store performance!

“The Purchase Funnel”& “Customer Journey KPIs”

Store trafficStore circulationTraffic flowDuration in storeStore conversion

Department trafficDept. circulationTraffic flow% of store trafficDuration in dept.Dept. salesconversion

Product area trafficArea circulationTraffic flow% of store/dept. trafficDuration in areaProduct areasales conversion

Product display trafficTraffic flow & approach% of store/dept/area trafficDuration at displaySpecific product browse timeDisplay sales conversionSpecific product conversion

Sales, numberof transactions,aver’ge value &basket value bydepartment,product areaand display

Analytics into Actions - “The Wheel of Fortune!”Delivering improved store experience and store performance

How do retailers act on the data from VMAnalytics?

• VMAnalytics tells a retailer “what is happening?”in its stores

• VMAnalytics also shows which store performance KPIs

need to be improved in those stores.

• However VMAnalytics is only as effective as the interpretation of the

answers, and the actions it takes from them.

• VMAnalytics needs to be combined with best practice

benchmarking and experience of the retail experience to identify

which store elements need to be improved, and how

• VMAnalytics should be used in strategic stores to continually test,

measure, improve and implement new store initiatives to increase

store experience KPIs.

“The Wheel of Fortune!”Opportunities for store

performance improvement fall

into 4 main disciplines…

1. Product assortment structure,

segmentation & stories

2. Space planning, densities,

layout & customer journey

3. Visual display, presentation

tools & selling techniques

4. Branding, interior design,

visual communication, marketing

campaigns and promotions

Do you know within which of

these disciplines lay the

opportunities to increase

store performance?

space allocation

product stories:location of categories,

heroes and silhouettes

impulse:queuing systems

conversion of sqmto linear metres:

fixture density

display density:options per sqm

mix &balance:themes,silhouettes,categories,

story size:option width of

fashion position& end-use:mix, weighting andfocus of fashionpositions & end-use

story balance:mix & weighting ofcoordinated categories


walkways:configuration,

width & marking

space layout:department,location andadjacencies

first 1/rd store:product, layout,fixtures, prices,communication

space planning,densities, layout& the customer

journey

visual display,presentation tools

& sellingtechniques

unit depth:density of

display

visual display:style, quality and skill

of visual displaytechniques

mannequins & busts:density, style, grouping,

plinths, & location

visibility perception:priority visibility of imagemakers, basics and best

sellers

focal points:number, location

and delivery of hotspots

product blocking:product application

& treatment

display techniques:mix/balance of frontal,

lateral hanging and folded

wall display:levels of display

wall rhythms:balance,

repetition, size andsymmetryof blocks

cross-merchandising:techniques and

application

space layout:department, location

and adjacencies

space allocationsquare metres of

departments &sub-depts...internal height:

use, location of internalwalls & fixtures

cash area & fitting rooms:location and numbers

product stories,assortment,structure &segmentation

branding, visualcommunication,interiors &promotions

distribution:wall and floorstory location

categories,coordinatedcategories &hero products

option width ofproduct stories

ticketing &packaging:

interaction:demonstrations,tastings and testing

prices:mechanics,visibility,design &density

new initiatives:introduction ofnew product stories

number &frequency:number, dynamic& duration ofproduct stories

story structure:mix & combinationof image makers,best sellers & basics

best sellercategories:focus and timing ofhistorical best sellercategories

pos & signage:size, materials,design & density

events & marketingcampaigns:promotional messages& “tone of voice”

price heroes:communication& design

communicationtechnology:purpose, impact, design& location

promotional product:width, depth & blocking

promotional delivery:fixtures, mechanics

graphicmechanics:

interior design features:lighting, materials, colour,flooring, signage, logos,fixtures, mechanics

The Anatomy of AnalyticsCustomise your counting, measure your success, meet your objectives

What is in-store analytics?

• In-store analytics uses store cameras and analytics software

to measure customer movements and actions inside stores

• The data can be accumulated and extrapolated to give unique

insights into where stores are failing and where opportunities lay in

terms of guiding customers to a wider variety, and more beneficial

parts, of a store, getting them to dwell for longer in areas and at

specific displays, and where, when & how to convert more visitors

into browsers and then into purchasers.

• The 3 parameters to consider when measuring data are:-

1. The number of things you want to measure per store

2. The number of stores you want to measure

3. The duration of time you want to measure for

• To select the correct scope and depth of analytics investment,

it is important to be clear what your objectives are:

• To measure specific issues quickly and with purpose

• To measure a range of issues over time

• To create a store to continually test, measure, improve and

implement new store, sales & marketing initiatives

• To simply measure store traffic

1. Instant AnalyticsThe objective is to understand

quickly and cost-effectively what

is happening in a specific area of

a store.

Cameras are installed and set up

temporarily in a matter of hours

with data gathered and analysed

over the following days.

The temporary low-cost nature of

InstantAnalytics allows the

camera set-up to be moved

periodically to different areas of

the store to measure and

understand different issues.

InstantAnalytics even allows for

an “Analytics Calendar”to be

employed to measure in turn, the

impact of new store initiatives,

seasonal displays, promotions,

events & marketing campaigns.


Number of StoresMeasured

Duration ofMeasurement Number of

MeasurementsPer Store

2.VMAnalyticsThe objective is to understand in

more-depth and for a longer

period of time how a store and

store departments are working.

Retailers may employ a couple of

full VMAnalytics stores covering

strategic cluster or locations.

VMAnalytics is best used as a

tool to continuously test,

measure, improve and implement

new store initiatives, displays,

sales & marketing campaigns.

3.VMAnalyticslightSimply a lighter and less

expensive version of VMAnalytics.

Retailers may develop several of

these stores to cover a complete

variety of store situations and

geographical clusters.

4.PeopleCountingOne camera located at the

entrance of every store to measure

traffic into and out of the store

1. InstantAnalytics

2. VMAnalytics

3. VMAnalyticslight

4. PeopleCounting

VMAnalytics –“Ask the right questions!”Customise your counting, measure your success, meet your objectives

1. InstantAnalytics 2.VMAnalytics 3.VMAnalyticslight 4. PeopleCounting

Quick & easy answers

to specific questions

In-depth and long term

overview of strategic

store/dept

Mid-level long term

overview of strategic

store/dept

Traffic Counting onlyPurpose

Store Engagement

Zone Traffic

Engagement Rate Dwell

Times

Dwell Conversions

Sales Transactions

Entrance traffic

Store traffic

Store Engagement

Zone Traffic

Engagement Rate

Dwell Times

Dwell Conversions

Sales Transactions

Store Conversion

Staff ratios

Entrance traffic

Store traffic

Store Engagement

Zone Traffic

Engagement Rate

Dwell Times

Dwell Conversions

Sales Transactions

Store Conversion

Entrance trafficAnalytics

What are the right VMAnalytics for you?

• The most important consideration for choosing

analytics is what do you need to know about

your store and your customers?

• Even a higher investment can be worth the ROI

if the output is fundamental to commerciality

Other important considerations are:

• Are you in a hurry to get answers?

• Are your stores fast-paced for quick answers?

• How many store clusters do you have?

• Do you have franchisees and retail partners?

• Is a wide geography part of your business?

• Do you want to take control of analytics?


Specific location and

coverage linked to

problem solving

Total store or

department with total or

high space coverage

Total store or

department with medium

or low space coverage

Store entranceStore Location &

Space Coverage

Quick

1 week

Longer

1 month

Quick

2 weeksTime to implement

and deliver data

Average

3 weeks

1+ 10+ 1No of cameras 4+

2 weeks+ Permanent PermanentData/analysis period Long-term

Totally Flexible Some flexibility Non-flexibleFlexibility over time Flexible

Low High LowCost Medium

Camera placement

Analytics set-up

Data analysis

Action recomm’tions

Camera placement

Analytics set-up

Data analysis

Benchmarking

Continual action

recomm’tions

Test, measure, adapt

Set-up daily/weekly &

monthly reports

Periodic trend reports


monthly reportsSupport Required Camera placement

Analytics set-up

Data analysis

Benchmarking

Action recomm’tions

Test, measure, adapt


monthly reports

Set-up, analysis &

implem’ntation training

Most complex

In-depth training

Non-requiredEase of training and

client handover

Set-up & analysis

training

• IntantAnalytics cameras/server installed and set up within hours

• Data gathered and measured within hours

• Data analysis and conclusions within days

• Action plan implemented and analysed within days

• The temporary low-cost nature of InstantAnalytics allows the

camera set-up to be moved periodically to different areas of the

store to measure and understand different issues.

InstantAnalytics –“Answers into Actions!”Because “a week in retail”is a long time

Months 1 & 2…

Analysis of

Queuing systems

Traffic flow to queuing

Queuing patterns

Daily patterns of queue length

Impulse engagement

Impulse dwell times

Impulse conversion

Testing impulse strategies

The cost of initial investment andinstallation of InstantAnalyticswith 4 cameras and server

Month 3 …

Analysis ofMonth 4…

The cost of moving cameras.

<£500

<£1500


Analysis of

1st third of the store

Traffic flows

Traffic split

Attraction of wall displays

Dwell times of opening displays

Dwell conversion of tables

Engagement of mannequins

Conversion rates of busts

Month 4…

Analysis of

New display techniques

Attraction to new wall displays

Dwell times at new wall displays

Dwell conversion at new displays

Comparison of old/new techniques

Changes to traffic flow

Engagement of new & old

Conversion rates of new & old

Months 5 & 6…

Analysis of

Store Traffic Flow

Traffic counting at store

destination points

Monitoring of main aisle traffic

Attraction to focal points

Dwell times at key junctions

Engagement with store signage

Months 11 & 12…

Analysis of

Christmas Shop-in-Shops

Customer traffic flow

Attraction of Christmas shops

Dwell times in shops

Engagement of key displays

Dwell conversion of shops

Comparison of adornments yield

• IntantAnalytics allows for an “Analytics Calendar”to be employed

to measure anything from traffic flow, the impact of new store

initiatives, queuing & impulse strategies, seasonal displays,

promotions, events & marketing campaigns.

How does VMAnalytics work?Data capture, integration, analysis and output

IP DigitalCamera(s)

Store Server (if required)

POE switch(Power over

Ethernet)

Data Capture6 Steps to in-store analytics

1. Technical and strategic store visit

• Discuss analysis objectives

• Define number & location of cameras

to achieve objectives

• Identify and solve technical issues

2. Agree scope, costs & implementation time

3. Implementation store visit

• Install cameras

• Install software on dedicated server

4. Coordinated retail merchandise audit

• Map SKU sales data related to

monitored areas

5. Activate & set-up analytics:

• Create traffic & dwell zones

• Validate accuracy and sensitivity

6. Real time outputs:

1. Convert data into actionable reports

2. Create personalised dashboard


Data Integration & Analysis

WeatherData

StaffSchedules

POSSystem

Data Output

RetailCalendar

Camera integration & Analytics Set-up

VMAnalyticsSoftware

• You wouldn’t buy a new car today without built-in analytics

monitoring performance, and flashing warning signs

• Yet retailers invest hundreds of thousands of pounds, euros and

dollars in stores without any capability to monitor their performance

other than through traditional traffic counting, POS transactions

and total store conversion.

• The rest of the store, and the story it tells, is a mystery!

Wouldn’t you like to know…

• Traffic patterns throughout the store, “hot-spots”and “cold-spots”

across each floor, and traffic flow between different floors?

• Traffic, attraction, dwell, engagement and conversion by

department, zone or display area

• Impact of focal points, graphics and feature displays

• Queuing patterns and impulse attraction & conversion

• Fitting room traffic flow and queuing patterns

VMAnalytics & New Store DesignsUnlocking the mysteries of the physical store, and the stories it tells

The cost of initial investment andinstallation of VMAnalytics in a500sqm store

New display techniques,

Fixtures & FittingsAttraction to new wall displays

Dwell times at new wall displays


Store Traffic FlowTraffic counting at destination points

Monitoring of main aisle traffic

Traffic between floors

Traffic at inter-floor junctions

The average cost of design,development and build of a new500sqm store

VM Analytics offers the capability to measure

many store experience KPIs across important

areas of a new store, with conversions and

dwells by department and zone, in addition to

total store traffic and sales conversion which

is the limit of traditional people counting.

<£10000

>£500000


1st third of the storeTraffic flows

Traffic split

Attraction of wall displays

Dwell times of opening displays

Dwell conversion of tables

Engagement of mannequins

Conversion rates of busts


Comparison of old/new techniques

Changes to traffic flow

Engagement of new & old

Conversion rates of new & old

Traffic at inter-floor junctions

Attraction to focal points

Dwell times at key junctions PeopleCounting

Traffic Counting only

Analysis of:

Entrance traffic

Coverage of:

Store entrance

Cameras:

1

Permanent

Non-flexible

VMAnalytics

In-depth and long term

overview of stores &

strategic departments

Analysis of:

Entrance traffic

Store traffic

Store Engagement

Zone Traffic

Engagement Rate

Dwell Times

Dwell Conversions

Sales Transactions

Store Conversion

Staff ratios

Coverage of:

Total store traffic and

key department with

high space coverage

Cameras:

10+

Permanent

but flexible

Queuing at tills/servicesTraffic flows

Queuing levels & patterns

Impulse engagement

Impulse dwells

Impulse conversions

VMAnalytics monitors customer shopping behaviour using store

surveillance cameras, and transforms the behaviour patterns

into statistical data and links to live POS data

VMAnalytics calculates not only traditional store conversion rates but

never seen before KPIs such as:

• Engagement Conversion - % of total traffic at specific displays

• Dwell Times - average time spent engaging with displays

• Dwell Conversion rate - % of people who dwelled that bought

• ‘Transaction Value’& ‘Items per Transaction’for specific ranges,

displays and store areas

VMAnalytics assesses the KPI evidence and transforms it into

decisive store actions

For the first time retailers can see the direct impact on

conversion and sales of product displays and visual

merchandising initiatives for specific ranges in specific locations.

Never before have retailers been able to give such an accurate

and precise answer to the perennial question:

VMAnalytics! from VM-unleashed!Answering the perennial question:

“What is happening in my store?”

The data can be accumulated

and extrapolated to give unique

insights into where stores are

failing and where opportunities

lay in terms of guiding

customers to a wider variety,

and more beneficial parts, of a

store, getting them to dwell for

longer in areas and at specific

displays, and where, when &

how to convert more visitors

into browsers and then into

purchasers.

The 3 parameters to consider

when measuring data are:-

The number of things you want

to measure per store

The number of stores you want

to measure

The duration of time you want

to measure for


and precise answer to the perennial question:

“What is happening in my store?”

• Are shoppers engaged

• Are my offers working?

• Which promotional messages sell best?

• What graphic design principles are attracting customers?

• What is my optimal store layout?

• Which fixtures and furniture are most effective?

• Which packaging is most effective?

• Which product display techniques attract attention & sell?

• Which product groupings –single product, categories,

coordinated categories or themes attract & sell?

• Is my new assortment attracting interest?

• Are customers being attracted to displays but not buying?

• Are customer buying from a display, but not enough are being

attracted to it?

• Which window treatments attract customers into the store?

• How do i set staff schedules to maximise sales?

• Does shopper behaviour vary by store location?

… for more information please call Tim Radley

+44 (0)7967 609849.

VM-unleashed unlocks the multi-channel profit potential of retailers by

integrating the buying, visual merchandising and selling functions, for

traditional stores and on-line channels.

which product?

how much of it?

how to segment and group it?

how to display and communicate it?

how to promote and sell it!

...and how to make it happen in your company?

Space planning & allocation

maximising sales/profit productivity per sqm., space density and store

capacities –store grading, square metre to linear metre conversion,

store & web space allocation, fixture capacity and design flexibility.

Assortment structure display

Segmenting the assortment for customer ease-of-shop, balancing

product story types, defining construction of options within stories,

planning the flow of goods to construct and fragment stories.

Store layout & web architecture

VM-unleashed!Delivering your store selling fundamentals

- making the most of what retailers have

VM-unleashed is a retail

specialist consultancy working

with clients throughout Europe

on training & implementation.

Tim Radley is the founder and

Managing Director and has

been working with best practice

European retailers for over 20

years including:-.

All Saints, Camper, Boots,

Carrefour, Primark, Otto

Versand, Cortefiel, Oviesse,

Coin, Springfield, Motivi,

Adidas, Sonae, Alessi, Aena,

Marks & Spencer, KappAhl,

Imaginarium, Porcelanosa,

Clarks, Aldeasa, Pepe Jeans,

Trucco, Sony, Koton, Oltre,

GasNatural, Orange…


Store layout & web architecture

Segmentation, architecture and intuitive navigation, sightlines and

focal point planning, best seller merchandising, “contact points”to

stimulate impulse purchasing, cross-merchandising.

Visual Merchandising

Commercial display with optimum option and unit densities, creative

display for maximum rates of sales, integration of actual and planned

best sellers, image makers, high & low margin product.

Retail Calendar, Events & Promotions

sales promotion strategies and calendars, price & promotional

communication, stimulating the assortment, controlling store & web

space, time and graphic communication, dynamic promotional

layering, window strategy & display, store & website promotional

journey, e-newsletter delivery.

VM tools & processes, team structure & training

developing guidelines & manuals, space plans & zoning, developing

store regimes and routines, instilling a culture of visual merchandising

“from boardroom to stockroom!”, improving visual merchandising skills

in-store, developing & delivering training programmes.

… for more information please call Tim Radley

+44 (0)7967 609849.

The VM-unleashed! Learning TreeDo you have “The Perfect Store or the Perfect Storm?”

“The Perfect Store

or The Perfect Storm?”

“The Perfect Store”for the

retailer is always the result of

correctly aligned strategy, selling

principles, tools and support

training.

“The Perfect Storm”arises when

the strategy, principles and

selling tools are simply not

correct, uncoordinated, poorly

resourced and often the result of

poor and outdated retail

awareness, perceptions,

education and training.

Do you know what your correct approachto service and non-service selling shouldbe based on your product proposition,store skill-sets, customer demographic,geographic culture?Do you grade stores by Selling Strategyand do you train your staff accordinglyand appropriately?

Do you get your store VM principlescorrect based on your Selling Strategyand customer proposition?- Assortment structure & segmentation- Display densities & store capacities- Store layout, locations & adjacencies- Product display techniques- Retail calendar & promotions- Visual communication & branding- Store design and customer experience

VMAnalytics & InstantAnalytics fit into the wider picture of retailstrategy, store selling strategy, store selling principles and the varietyof “selling tools”that a retailer can use to drive sales and profit throughits stores.

“A Fish Rots from the Head”

Remember a fish rots from the


Do you measure the new store KPIs?Do you have the ability to measure thestrengths & weaknesses of your storesand analyse store initiative ROI.- Store Traffic & Conversion- Attraction of store areas & displays- Dwell times at displays- engagement rate of displays- Dwell conversion rates- Conversion rates by display

Do you have the correct VMSellingToolkitto support your store selling strategy?- VM Product Display Book- Seasonal VM Guidelines- Dynamic product communication- A Training Academy- A Retail Calendar- Sales Incentive Schemes- Store design & refreshment actions- Buying & Merchandising Support

Do you have the correct skill-sets in yourstore teams, support and train them toimplement and maintain “Perfect Stores!”- Basic VM skills & awareness- Product knowledge & brand passion- Store space awareness- Store operational disciplines- Daily/weekly rules & regimes- Customer & market awareness- Customer Service Skills

VMGlueTraining from “Boardroom to

Stockroom”creates vertically

coordinated retail teams and

processes, building an awareness

and a VMGlue between buying &

selling, head office and stores.

Remember a fish rots from the

head! Training and education is

not just for the seller on the shop

floor but from the CEO

downwards.

To stay ahead of current best

practice, latest thinking and best

practice tools, processes and

technique a retailer needs… .

Training & Education from

“Boardroom to Stockroom”

VMAnalytics!analytics into answers into actions

VM-unleashed Ltd!11 Moat FarmRoyal Tunbridge WellsTN2 5XGUK

Tim RadleyManaging [email protected]+44 (0)7967 609849www.vm-unleashed.com

customise your counting, measure your success,meet your objectives

from VM-unleashed!