Revitalize Customer Engagement with Location Analytics

Revitalize Customer Engagement with Location Analytics

Dick’s Sporting Goods recently announced their initiative to expand clothing offerings for women and open specialty stores for women in existing retail locations. As the company looks towards higher growth opportunities, how will this investment pay-off in terms of attracting, engaging and retaining new customers and ultimately drive sales?

Dick’s shift is representative of a broader shift in retail: smart retailers refocusing and investing in who, how and when they engage in their brick-and-mortar locations. As companies think about revitalizing customer engagement, location analytics can play a key role in measuring performance, designing new experiences, and achieving a holistic understanding of the customer.


Measuring and Managing Performance

On a basic level, location analytics provides powerful insights on:

  1. How outside opportunity is converted to visits
  2. Visit activity and engagement in location
  3. When and how frequently customers return
  4. Cross-visits between locations


How does this translate into measuring and managing performance? Let’s take Dick’s Sporting Goods at as hypothetical example. As Dick’s opens new specialty shops, you would expect that they attract a new customer base. Say certain locations start hosting morning yoga sessions in stores to entice more female shoppers not familiar with a traditionally golf and hunting oriented outlet.

Location analytics can answer some fundamental business questions with such a launch:

  1. How many new shoppers visited specifically during the event?
  2. When did these shoppers first return? What % of shoppers only came in for a 1-time offer?
  3. How frequently does this new shopper segment return? Are there certain follow-up promotions that drive higher visit frequency?
  4. How do these new initiatives impact visit behavior of existing customers?


An Example of Euclid in Action

Answers to these questions allow a retailer like Dick’s to assess overall value created by new initiatives and ongoing promotions. Euclid has worked with a number of retail clients to answer these very questions and assess new customer lifetime value and ROI from key marketing, operations and strategic initiatives. For example, we worked with a nationwide retailer to assess the effectiveness of a series of in-store events. Here’s a snap shot of the results:













With the power of location analytics, Euclid’s customer was able to assess effectiveness and and act upon expanding the promotion. We found:

  1. The direct result of the event in acquiring new customers
  2. The value impact of the promotion on the retailer’s most important sales period
  3. The increased engagement and implied higher transaction sizes for this specific cohort of customers


Designing Customer Experience

Your best customer experience comes from knowing your customer. Beyond measuring performance, location analytics can play a pivotal role in defining your experience in stores. Euclid’s full visit history of every customer (who has a Wi-Fi enabled phone) feeds into:

  1. Events and New Initiatives
  2. Promotions and Loyalty Rewards
  3. Planning and Store Design


Illustrative Applications

Events and New Initiatives

As our customer rolls out the successful event cited above across a subset of their locations, they are relying on Euclid to help prioritize and identify areas of opportunities. Specifically, Euclid is helping recommend a subset of stores that have: a) high outside opportunity of potential new customers, but low capture; b) a recent trend in declining visit frequency  of loyal shoppers. This satisfies two main goals: a) attract a new customer base and b) bring existing customers back to stores more often.

Promotions and Loyalty Rewards

Great, the event brought in a great set of new customers, what’s next? For example, if Dick’s brings in new shoppers through the newly designed women’s workout shops, these shopper may have fundamentally different visit behavior vs. existing repeat customers. With visit repeat data and visit recency (average number of days before returning), retailers can deliver timely promotional offers timed to drive more frequent shopper behavior. In addition, a loyalty rewards program might provide a wealth of information on loyal customers, but what about the subset of customers who visit just as frequently and shop for just as long? Euclid helps clients find areas of missed customer opportunity to focus loyalty rewards drives.

Planning and Store Design

Lastly, a number of Euclid’s customers rely on location analytics to inform long-term planning. For example, one customer is assessing cannibalization and cross-visits between outlet and full-line locations to tailor merchandise mix. Another is assessing poor performing stores and where to make investments (new initiatives to capture more visits, better in-store experience to increase engagement, enticing loyalty promotions to drive repeat visits). In terms of store design, Euclid can capture insight on how visits to the new in-store women’s workout stores drives visits to other areas of the store. This enables a data-driven approach to store redesign. Applying this application to a mall environment, a mall can assess if there is a compelling visitor flow post movies to the food court, and provide a service for food court vendors to deliver right-time offers to visitors exiting the movie theatre.

Ultimately, location analytics should be tailored for you, and Euclid’s industry-leading data platform is optimized to address a flexible set of use cases. It’s not just data for data’s sake, but real customer engagement insight that improves customer experience and your bottom line.


Alexander Reichert, Insights

Alexander Reichert, Insights

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