When It Comes to Retail Store Performance, One Size Does Not Fit All
In today’s highly integrated and customized digital marketplace, successful retailers understand it’s not wise to use a one-size-fits-all methodology when developing marketing strategy. What has proven successful for others will not achieve the same results for all. Neither can they fall back on just the old tried-and-true traditional marketing practices that had been effective at one time. “If you build it, they will come” has been relegated to the old way of doing things. More than likely they won’t come, as they can easily find a competitor who is willing to give them exactly what they want – a customized experience.
Yet, successful retailers often diagnose the general health of their stores by using a one-size-fits-all traditional benchmark of same-stores growth when measuring true retail performance. Often, retailers will use this benchmark to determine chain improvement over a set period of time, while ignoring other important variables that must be factored in. Or, it will be compared to an average of publicly traded retailers, which can be distorted by the scarcity of data from the small pool it represents.
Although store past performance has its place as a diagnostic tool, when used in isolation, it will only give an incomplete analysis of true retail health. And, in today’s highly competitive retail landscape, incompleteness cannot be tolerated.
By using cutting-edge technology to understand those factors that drive a store’s success, retailers now have at their disposal a system of in-depth business analytics to expand the scope of their analysis beyond same-stores growth. By going outside of the box, they are now able to uncover and specifically focus on those factors leading to actionable insights. No longer are they tied to store past performance to make decisions, they can now analyze real-time shopper traffic within the right context by using the right benchmarks to make the right decisions.
ShopperTrak provides a store performance matrix through our people counter technology to not only help retailers identify how their stores compare to one another, but determine which actions will increase same-store sales. This matrix allows retailers to accurately assess those variables tied to increased conversions. As ShopperTrak understands, the traditional use of same-stores sales alone can only point to what has happened in the past. However, business analytics will help predict what can happen in the future for successful store performance.