How stores track your shopping behavior | Ray Burke | TEDxIndianapolis
TLDRThe speaker shares insights into the importance of observing shoppers to enhance the customer experience and improve business performance. Starting from their first job at a camera store, they discovered the competitive nature of sales and the different types of shoppers. The speaker then discusses the use of sophisticated tools like eye tracking and virtual reality simulations to study shopper behavior. They highlight the importance of understanding customer needs and desires, and how observing shoppers can help identify points of engagement and friction in the shopping process. The speaker provides examples from their research with Marsh supermarkets and a Walmart shopper to illustrate how analyzing purchase patterns can help retailers tailor their offerings. They also discuss the impact of the store environment on shopper behavior and how retailers can optimize their layout to help customers find what they're looking for. The speaker concludes by emphasizing the need for retailers to respect consumer privacy while using data to improve the shopping experience for everyone's mutual benefit.
Takeaways
- 📸 **Background in Retail**: The speaker's interest in watching shoppers stems from their first job at a camera store, where they learned to identify different types of customers and their shopping behaviors.
- 💼 **Sales Techniques**: In retail, understanding the customer's intent is crucial. Some are just browsing, while others have specific purchases in mind, such as a wedding or a vacation.
- 🤰 **Customer Engagement**: A memorable story from the speaker's past involved selling a camera to a man whose wife was expecting a child, highlighting the importance of engaging with customers to understand their needs.
- 📊 **Advanced Tools for Observation**: Modern retail research involves sophisticated tools like eye tracking and virtual reality simulations to study customer behavior in a controlled environment.
- 🛍️ **In-Store Observations**: Going into actual stores with 3D imaging and security cameras allows for the study of shopper behavior in a natural setting, providing valuable insights into customer experience.
- 🕵️♂️ **Data Collection and Privacy**: There are concerns about consumer privacy with tracking, but when done ethically, it can lead to improved customer satisfaction and business performance.
- 🛒 **Understanding Shopper Behavior**: By observing what and how people buy, retailers can infer needs, desires, and anticipate future requirements, which can be used to enhance the shopping experience.
- 📈 **Optimizing Store Layout**: Research has shown that factors such as shelf displays, product visibility, and store navigation significantly impact a customer's ability to find products and make purchases.
- 📋 **Loyalty and Personalization**: Utilizing customer loyalty cards allows retailers to track purchasing habits and personalize offers, increasing customer engagement and loyalty.
- 👕 **Apparel Shopping Insights**: In apparel, understanding how men shop and what discourages them can lead to simple changes that significantly increase product interaction and sales.
- 📈 **Retail Innovation**: Innovative retailers are using insights from shopper behavior to improve the customer experience, which benefits manufacturers, retailers, and consumers alike.
- 🛠️ **Future of Retail Technology**: As technology advances, it will provide even more detailed information about shoppers, but it's crucial for companies to respect and protect consumer privacy.
Q & A
What was the speaker's first job and how did it influence their interest in observing shoppers?
-The speaker's first job was as a salesperson at a Cardinal camera store when they were 16 years old. This job sparked their fascination with observing shoppers as they learned to identify different types of customers and their shopping behaviors, which was crucial for their success in a commission-based sales environment.
What are the three types of customers the speaker identified during their time at the camera store?
-The three types of customers identified were: 1) Browsers, who were not necessarily there to make a purchase, 2) Customers who came in for specific items like film or photo processing, and 3) Shoppers with larger plans, such as a wedding or vacation, who were more likely to make significant purchases.
How did the speaker's interaction with the customer in the pickup truck contribute to their understanding of customer behavior?
-The interaction with the customer in the pickup truck, who appeared disheveled but was actually a big spender looking to buy a camera for his wife's pregnancy, taught the speaker the importance of not judging customers by their appearance and the value of engaging with customers to understand their needs, even if they don't initially seem like big spenders.
What tools and technologies does the Kelly Schools Customer Interface Lab use to simulate and study the shopping experience?
-The Kelly Schools Customer Interface Lab uses a variety of tools to simulate the shopping experience, including physical store setups with shelf fixtures and checkout lanes, eye-tracking technology, and virtual reality simulations to recreate the appearance of different types of stores.
How does the use of 3D imaging and software in studying shopper behavior help retailers?
-3D imaging and accompanying software allow researchers to measure not just the location of the shopper, but also their body position, reach, head direction, and facial expressions. This data, when captured anonymously, helps retailers understand shopper behavior in detail and make informed decisions to improve the shopping experience.
What concerns does the speaker address regarding the use of shopper tracking technology?
-The speaker acknowledges concerns about consumer privacy and the potential negative perception of shopper tracking as 'big brother' tactics. However, they argue that when used responsibly, these insights can improve the customer experience, increase satisfaction, and enhance business performance.
How does observing shoppers help in understanding their needs and improving the shopping experience?
-By observing shoppers, retailers can identify points of engagement and friction in the shopping process. This understanding allows them to modify the shopping experience to reduce obstacles to purchase, optimize the store's shopability, and ultimately meet customer needs more effectively.
What is the significance of the Marsh supermarkets' use of UPC scanners for consumer research?
-The use of UPC scanners at Marsh supermarkets not only improved operational efficiency at checkout but also captured transaction data that provided a rich source of consumer research. This data helped in understanding shopping patterns and preferences, allowing for targeted marketing and improved customer loyalty.
How can retailers use customer loyalty programs to enhance the shopping experience?
-Customer loyalty programs provide retailers with contact information and purchase history of customers. This allows retailers to send personalized offers, such as coupons or recipes, for products that the customer frequently buys, thus enhancing the shopping experience and building customer loyalty.
What role does the store environment play in influencing a shopper's visual attention and purchase decisions?
-The store environment significantly influences a shopper's visual attention and purchase decisions. Factors such as special displays, aisle organization, and the presence of promotional offers can draw a shopper's attention and encourage them to spend more time looking at certain products, potentially leading to increased sales.
How can retailers improve the 'shopability' of their stores to help customers find products more easily?
-Retailers can improve the 'shopability' of their stores by providing effective navigational aids, ensuring clear visibility and accessibility of products, and organizing shelves in a way that makes it easy for customers to locate items. Additionally, the use of product images, distinctive packaging, and increased shelf facings can significantly reduce the time it takes for customers to find what they are looking for.
What are some innovative strategies that retailers are using to enhance the shopping experience and drive sales?
-Innovative retailers are using strategies such as color-coded maps for navigation, clear signage and product visibility, providing information about products, showcasing new items through fashion shows or displays, and creating interactive shopping experiences like style centers. These strategies aim to make the shopping experience more convenient, enjoyable, and effective for customers.
Outlines
😀 Understanding Shoppers' Behavior
The speaker starts by expressing gratitude and excitement for the opportunity to share insights on shopper behavior. They recount their first job at a camera store, where they discovered the competitive nature of sales and the different types of shoppers. The speaker explains how understanding the intentions of customers led to successful sales, such as selling a camera to a man for his wife's pregnancy. They then discuss the use of sophisticated tools like eye tracking and virtual reality to simulate and study shopping experiences. The speaker emphasizes the importance of observing shoppers to improve customer experience and business performance.
🔍 Analyzing Purchase Patterns and Store Environment
The speaker delves into how analyzing shopping receipts can reveal a customer's preferences and habits. They discuss the use of customer loyalty cards to track purchases over time and build shopper profiles. The speaker also talks about the impact of the store environment on shopper behavior, such as the influence of special displays and the shopper's goals on their visual attention. They highlight the importance of effective shelf displays and the use of simulation studies to measure how easily shoppers can find products. The speaker also shares insights on how to connect a shopper's mental image of a product with its physical availability in the store.
📈 Enhancing Retail Experience with Data Insights
The speaker provides an example of how sales data can be used to understand consumer needs and improve the retail experience. They describe a project with a retailer that allocated disproportionate space to men's products, leading to low sales. By observing men's shopping habits and making simple changes to the store layout and product presentation, they significantly increased product touch and sales. The speaker also emphasizes the importance of providing effective navigational aids, showcasing products prominently, and giving consumers the information they need to make purchases. They discuss the role of new products in keeping customers engaged and coming back to the store.
🛍️ The Future of Retail and Respecting Consumer Privacy
The speaker concludes by discussing the future of retail and the importance of technology in providing detailed information about shoppers. They stress the need for companies to respect consumer privacy and use data for mutual benefit, as losing consumer trust can undermine business success. The speaker reiterates the benefits of creating shoppable stores that communicate the value of brands, provide a convenient and enjoyable shopping experience, and help consumers find what they are looking for.
Mindmap
Keywords
💡Salesperson
💡Customer Loyalty Card
💡Eye Tracking Technology
💡3D Imaging
💡Consumer Privacy
💡Shoppable Store
💡Product Touch
💡UPC Scanners
💡Heat Map
💡Shelf Facings
💡Style Center
Highlights
The speaker's fascination with observing shoppers stems from their first job at a camera store, where they learned to identify different types of customers and their shopping behaviors.
Salespeople at the camera store worked on commission, leading to a competitive environment and the importance of understanding customer types to make successful sales.
The speaker discovered the value of watching shoppers to understand their needs and desires, which has influenced their current approach to studying consumer behavior.
At the Kelly schools customer interface lab, sophisticated tools like eye tracking technology and virtual reality simulations are used to study the shopping experience.
The lab allows for controlled studies, but sometimes it's necessary to observe shoppers in their natural environment within actual stores.
Data from security cameras and 3D imaging cameras is used to analyze shopper behavior, including their skeleton position, reach, head direction, and facial expressions.
Despite privacy concerns, the speaker argues that tracking shopper behavior can improve the customer experience, increase satisfaction, and boost business performance.
By observing what people buy, it's possible to infer their needs and predict future desires, which can help optimize the shopping experience.
Marsh supermarkets, known for their innovative use of technology, provide a rich source of consumer research through the data captured by UPC scanners.
Loyalty cards allow retailers to track customer purchases over time and personalize offers, such as sending mailers for products customers frequently buy.
Analyzing a shopper's repeated purchases can help create a profile or 'DNA' of the shopper, which can predict their future buying patterns.
The store environment and a shopper's goals significantly influence their visual attention and what they notice while navigating through a store.
Simulation studies show that manipulating shelf displays can reduce the time it takes for shoppers to find products.
The number of shelf facings and the straightness of shelves can impact a shopper's ability to locate products efficiently.
In apparel shopping, understanding male customers' struggles with outfit coordination led to the creation of a style center, which significantly increased sales.
Simple changes in product presentation, such as folding techniques, can greatly enhance product touch and sales.
Effective navigational aids, clear presentation of products, and providing necessary information are key to improving the shopping experience.
Showcasing new products through innovative methods, like fashion shows, can substantially increase sales and attract customers.
The future of retailing will involve the continued use of technology to gather detailed information about shoppers, with a focus on respecting consumer privacy.
The speaker emphasizes that the data collected should be used for the mutual benefit of consumers and retailers, and respecting privacy is crucial for business success.
Transcripts
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