Daily Dose of iQ: Using Customer Data to Plan Store Layout

Feb 19, 2013 — Allan Pulga

Big data is a big topic in retail these days, as companies try to leverage the power of metrics, demographic information, customer purchasing information and even foot traffic to increase sales and profits.

Graeme McVie of LoyaltyOne recently wrote a blog post for Retail Customer Experience (Feb. 15), says customer data specifically is vital to identifying the behavior of "priority customers" in order to adapt store layout accordingly.

"Customer information helps provide a better understanding of the lifestyles and life stages of a particular store's shoppers. It can be used to identify affinities between items or any types of patterns. Data can then be applied to a number of both promotional and physical re-merchandising scenarios that target a company's best customers."

  • Adjusting shelf layout: A grocer arranges cereal boxes according to customer segment (i.e. children, family and adult cereal) -- arranged into separate sections rather than kids' cereal on the bottom, families' in the middle and adults' on the top.
  • Cross-merchandising: An auto parts store offers commerical customers oil discounts (commercial oil sales were low) and conducted upsell training for less-tenured associates (who were shown to sell fewer add-on items to oil change customers).
  • Changing physical layout: Due to demand of a large number of its customers, a grocer creates a convenient one-stop shopping area at the front of the store for busy families that pop in just for a few key items at a time.

Topics: Mobile Industry, Customer Experience, Business Intelligence

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