Top 10 Tips To Increase Retail Profitability In 2013

By Roseanne McCauley, VP of the Americas, Experian FootFall

Following a rather topsy-turvy 2012 that included the looming fiscal cliff, Hurricane Sandy and the relatively successful holiday season that provided signs of continued recovery, retailers are cautiously optimistic for 2013. As the phrase “Big Data” gains momentum, the industry continues the search for solutions that gather information on all facets of store performance to convert oversaturated consumers at the highest level possible. With that, here are 10 steps retailers should consider to increase efficiencies and maximize ROI:

1.    I will convert as many shoppers as possible:  Showrooming is here to stay so retailers need assure the in-store shopping experience is as enjoyable as possible to convert sales at a high level. 

2.    I must understand and achieve an appropriate balance between key metrics within my network of stores: Because every store has its own personality, retailers must determine the optimal relationship between labor, conversion and average transaction value for continued success.

3.    I will utilize advanced analytics to better understand how key points such as departments, floors or sections within my store are performing: To understand the “big picture,” retailers must gauge success at a micro level by comparing performance to other locations within the store. 

4.    I will use customer analytics to effectively manage labor: It is critical that retailers work with a provider who will deliver this high-level data, but also will consult with them to analyze the information to seamlessly establish an effective workforce management program.

5.    I will pay special attention to the multichannel customer experience:  This certainly isn’t a new resolution for retailers, but one that seemingly becomes more important as technology continues to advance. Retailers must analyze how each channel is influencing customer behavior and employ solutions to routinely attract shoppers and convert sales. 

6.    I will develop incentive programs based on conversion rate and store performance: Due to technology that provides near real-time snapshots of store operations, employees have a deeper understanding of what makes their store successful. Developing incentive programs based on this advanced data will assure employee buy in and continued success.

7.    I will employ a holistic solution to better understand the impact of the queue: Winning retailers will go beyond simply monitoring the queue to analyzing operational data — such as conversion rate and labor scheduling — that directly impacts the efficiency of the queue.

8.    I will develop a statistical baseline to forecast store performance more effectively: By reviewing historical data to predict what could happen tomorrow, next week or next month, retailers can more accurately plan operational aspects of the store, including staffing, sales and promotions, inventory levels and even store design.

9.    I will utilize advanced analytics to determine the potential impact of weather on retail events: By establishing a historical baseline, retailers can review sales and traffic levels and compare these with weather patterns to more effectively plan events. In 2013 and beyond, retailers need to work with an analytics provider that delivers all of this information in one place.

10.   I will implement and use shopper analytics to better understand customer behavior:  Having a traffic-counting solution isn’t enough in 2013. Retailers must fully comprehend how this rich data can be employed to assure success in the ultra-competitive retail landscape.

Roseanne McCauley is VP of the Americas for Experian FootFall, a provider of retail shopper analytics. In her position, McCauley oversees the continued expansion of Experian FootFall in the U.S. She also is responsible for strategic planning, market development, alliances, sales leadership and overall management of the company’s operations throughout North and South America.