Customer footfall is a key metric for the retail sector, enabling retailers to assess the attractiveness of a location over time and in comparison with alternative sites. After all, the more people who stream into a shop from the high street, the higher the potential turnover and profit. The decline in footfall in the retail sector has been an existential problem for many retailers long before the coronavirus pandemic. This article examines the development of a footfall strategy to sustainably increase customer footfall. The footfall strategy outlined here aims not to target advertising measures at an ‘average’ customer, but to tailor them to specific customer segments.
Declining footfall in the retail sector
Footfall in high street retail has been falling steadily for years. The trend towards online shopping is just one cause among many. In addition, consumer behaviour and expectations have changed significantly, and many retailers are unable to keep pace. Furthermore, high street retailers are not only competing with one another. When it comes to attracting customers, they are also competing with cultural, leisure and dining options in shopping streets and shopping centres.
Furthermore, the world of retail has been turned upside down in recent years. Retailers’ sales have plummeted, whilst online retail has reached new sales highs. More serious than temporary sales figures, however, are the long-term implications for the retail sector. Consequently, a pressing challenge for all retailers is how to sustainably increase footfall.
Learning from online retail: focusing on demand rather than supply
Ultimately, high street retailers can learn from online retailers not only to stabilise footfall but also to increase it. Online retailers have long been aware that customer behaviour is multifaceted and that different customer groups need to be approached in different ways.
After all, it is no longer enough to simply promote average products at bargain prices to all potential customers. A focus on special offers and simple promotional tactics involving blanket discounts may boost footfall, but only in the short term. Moreover, constant price wars tend to damage the brand image and neglect customer groups other than bargain hunters.
Rather, retailers must specifically address the differing needs of various customer groups and operate in a way that is driven by demand. To do this, a deeper understanding of customers is absolutely vital. After all, how individual customers perceive the product range and the brand has a direct impact on footfall.
This perception can ultimately be influenced by the retailer. This includes the design of the shop window and the shop itself, the breadth and quality of the product range, pricing policy, and the quality of advice and customer service provided by staff. However, the design of communication materials also plays a crucial role in shaping customer perception. The development of a sustainable footfall strategy takes account of the high degree of customer diversity.
A sustainable strategy to increase footfall
To develop a sustainable footfall strategy aimed at increasing customer footfall, the first step is to collect and analyse information about customers. This information includes socio-demographic and psychographic characteristics. Some of these characteristics can be captured using Crosscan’s solutions, for example through age and gender recognition or number plate recognition. However, footfall analysis and receipt analysis also provide valuable information about existing customers. The analysis of loyalty cards often provides further information about existing customers.
Customer segments are then identified, distinguished by differences in customers’ needs, preferences and purchasing behaviour. These distinctions may relate, for example, to quality awareness, brand loyalty, price sensitivity or preferred product categories. Ultimately, the number and size of customer segments always depend on the heterogeneity of the customer base.
To assign individual customers to customer segments, it is useful to have access to a customer database. This enables retailers to target existing customers individually with promotional campaigns across various channels. For new customers, it is helpful to utilise consumer databases provided by specialist service providers. Scoring approaches can be used to identify precisely those consumers who show a high degree of similarity to the individual customer segments. Furthermore, the advertising systems of social networks and technology companies offer targeted outreach to new customers in line with the established customer segments. For example, this allows retailers to specifically target consumers who are in the vicinity of a particular branch.
Ultimately, retailers must also develop specific offers for individual customer segments. This includes providing the right level of advice, offering bespoke products and applying appropriate discounts. Once these specific offers have been determined, the next step is to create an optimal mix of communication channels and promotional activities. To find the optimal mix, measuring success is essential. This is where Crosscan solutions come into play once again. By measuring footfall and customer frequency, as well as dwell time, data can be collected on the success of segment-specific advertising measures.
Boost footfall with solutions from Crosscan
We are happy to help you gain a better understanding of your existing customers and collect customer data through visitor analytics. Only when you have an accurate picture of your existing customers can you target them effectively and increase footfall. Furthermore, this customer insight makes it easier for you to attract similar new customers, thereby further boosting footfall at your retail locations.
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Let’s turn your vision into reality. Contact us today to get your brand started on the path to data-driven management of your visitor spaces.
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