{"id":55062,"date":"2022-02-24T02:40:10","date_gmt":"2022-02-24T02:40:10","guid":{"rendered":"https:\/\/eyeware.tech\/?p=55062"},"modified":"2022-02-24T11:33:39","modified_gmt":"2022-02-24T11:33:39","slug":"how-to-use-retail-analytics","status":"publish","type":"post","link":"https:\/\/eyeware.tech\/ko\/blog\/how-to-use-retail-analytics\/","title":{"rendered":"Predictive Retail Analytics: How to Use Data to Understand Shopper Behavior and Grow Sales"},"content":{"rendered":"

Predictive analytics is one of the biggest retail trends of the year, and it’s here to stay. A fundamental branch of business intelligence (BI) uses past data to predict future actions and generate insights.<\/span><\/h4>\n

Predictive analytics for retail lets you take proactive, data-based steps towards improving the shopping experience and be in sync with the ever-changing customer landscape. <\/a><\/span>Click To Tweet<\/a><\/span><\/h4>\n

Regardless of whether you’re a business owner, innovation manager, or insight director, being data-centric is the key to unlocking unbiased shopper insight to drive retail growth. Let’s explore how to obtain such data, and best put it to use.<\/span><\/h4>\n

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Why Collect Retail Data?<\/b><\/h2>\n

Competitive businesses in the retail sector leverage big data to understand their target market in a progressive way. As an essential BI tool, big data helps optimize all company areas. It can be the difference between a leading, profitable store and going out of business for retailers.<\/span><\/h4>\n

How?<\/span><\/h4>\n

Retail store analytics provide specific and detailed information about shoppers. As a result, they help remove the guesswork.\u00a0<\/span><\/h4>\n

You know your customers, what they want, and where, when, and how they buy it. No need for trial <\/span>and error. <\/span>A few big data <\/span>examples<\/span> are:<\/span><\/h4>\n
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Purchase history<\/h4>\n

Customer demographics<\/h4>\n

Product preferences<\/h4>\n

Buyer journey<\/h4>\n

Engagement patterns<\/h4>\n<\/blockquote>\n

This type of shopper insight enables <\/span>you to predict and measure purchase intent to manage better marketing margins, store operations, and customer experience with true efficiency.<\/span> With ROPO (Research Online, Purchase Offline) on the rise<\/a><\/span>, mu<\/span>lt<\/span>i-channe<\/span>l<\/span> retai<\/span>l<\/span>ers can use purchase intent to bridge the gap between online <\/span>and offline patterns.<\/span><\/h4>\n

Thus, predictive analytics <\/span>for retail help you build sustainable relationships with your customers.\u00a0<\/span><\/h4>\n

To do so, most retailers use <\/span>analytics <\/span>obtained from their point of sale systems or foot traffic analytics devices (people counters or beacons) – while those are helpful tools that enable you to make data-based decisions, they can only go so far in painting an insightful picture into what customers want to buy.\u00a0<\/span><\/h4>\n

Luckily, there’s a more progressive way to obtain much more valuable shopper data by using 3D eye tracking to measure attention and more – here’s how:<\/span><\/h4>\n

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How Eye Tracking Can Help with Predictive Analytics for Retail<\/b><\/h2>\n

In our last piece about <\/span>what eye tracking is<\/span><\/a>, we explained how the technology works through a brief definition.\u00a0<\/span><\/h4>\n

Eye tracking is a technological process that enables <\/span>the measurement of eye movements<\/b>, <\/span>eye positions<\/b>, and <\/span>points of gaze<\/b>. In other words, eye tracking identifies and monitors a person\u2019s <\/span>visual attention<\/b> in terms of location, objects, and duration.<\/span><\/p><\/blockquote>\n

Statistics show<\/span><\/a> that the global eye tracking market is on a continuous growth path, mainly due to increased interest and adoption of vision capturing technology.\u00a0<\/span><\/h4>\n

Healthcare, research, retail, and automotive are among the industries to see faster adoption and a particular interest in eye tracking technology. Zooming in on Retail, some of the fields where eye tracking is currently being used is understanding how people shop and how people interact with the store and products.<\/span><\/h4>\n

It is a cutting-edge tool for both consumer research and in-store research in retail. So much so that retail has become one of the<\/span> top commercial applications for eye tracking<\/span><\/a>.<\/span><\/h4>\n

From <\/span>Google<\/span><\/a> to <\/span>Apple<\/span><\/a> \ub610\ub294 <\/span>\ud398\uc774\uc2a4\ubd81<\/span><\/a>, the biggest companies in the world have been buying eye tracking startups for years now. At the same time, retail innovation managers have been utilizing eye tracking technology to find out:<\/span><\/h4>\n
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#1 What catches shoppers\u2019 attention and what they ignore<\/span><\/h4>\n

#2 Where they instinctively look and in what order<\/span><\/h4>\n

#3 When they shift their gaze from one product to another<\/span><\/h4>\n

#4 How they make their buying decision<\/span><\/h4>\n<\/blockquote>\n

Ultimately, eye tracking lets retailers analyze why their customers behave the way they do base on their gaze patterns.<\/span><\/p>\n

Let’s take a closer look at what specific eye tracking features generate predictive analytics for retail that will improve your marketing and merchandising decisions:<\/span><\/h4>\n

#1 Visual Attention Data<\/b><\/h3>\n

Whether they are aware of it, people choose to look at objects that capture their interest.<\/span><\/h4>\n

The brain has a finite amount of resources for processing images. Thus, it has to pick what it considers relevant and filter out unnecessary visual information. The term for this mental process is visual attention. You can measure visual attention and record it for further analysis with eye tracking.\u00a0\u00a0<\/span><\/h4>\n

In the context of retail research, visual attention reveals what customers are naturally interested in. <\/a><\/span>Click To Tweet<\/a><\/span><\/h4>\n

Before making a buying decision, a shopper will look at various products to compare their options. Usually, the items they gaze at the longest and most often are the ones they buy.<\/span><\/h4>\n

In this regard, eye tracking shows how long it took the customer to focus on a specific product. It also uncovers the number of times they looked at it. Moreover, eye tracking measures how long they spent gazing at an item for the first time and average. The formal terms for these metrics are:<\/span><\/h4>\n
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#1 Time to the first fixation = how long it took the customer to focus on a specific product<\/span><\/h4>\n

#2 Fixation count = the number of times they looked at it<\/span><\/h4>\n

#3 First fixation duration = how long they spent gazing at an item for the first time<\/span><\/h4>\n

#4 Average fixation duration = how long they spent gazing at an item on average<\/span><\/h4>\n<\/blockquote>\n

Eye tracking software generates heat maps and opacity maps to present this information. Depending on the type of visualization, the warmer or lighter an area is, the more visual attention it receives.<\/span><\/h4>\n

\"eye<\/b><\/h3>\n

#2 Interest, Perception, Intention<\/b><\/h3>\n

Eye tracking also provides retail store analytics by showing the flow of interest, perception, and intention:<\/span><\/h4>\n

Once a product catches a shopper\u2019s interest, they will proceed to view it in a certain way.<\/span><\/p><\/blockquote>\n

From that point, their perception can determine whether they intend to buy it or not.<\/span><\/p><\/blockquote>\n

Simultaneously, how the store presents that product influences how the customer perceives it.<\/span><\/p><\/blockquote>\n

Let’s say you’re running an in-store promotion.<\/span> Eye tracking studies<\/span><\/a> show that shoppers are more likely to perceive it as a better value if the initial price appears too. To make the buying decision with ease, they need visual clues along the way.<\/span><\/h4>\n

Overall, the intention to purchase a product of interest increases if the customer views it positively.<\/span><\/h4>\n

But how do you measure purchase intention? One way is by analyzing <\/span>consumer behavior.<\/span><\/h4>\n

#3 In-Store Customer Behavior<\/b><\/h3>\n

Eye tracking enables you to record and measure shopper behavior in a natural environment. The technology lets you observe your customers’ intuitive actions in real-time as they explore your store.<\/span><\/h4>\n

By implementing consumer insight and retail store analytics from eye tracking, you can:<\/span><\/h4>\n

Make stores easier to navigate<\/span><\/p>\n

Design targeted offers<\/span><\/p>\n

Organize shelves <\/span>and displays strategically<\/span><\/p>\n

Evaluate the impact of packaging designs<\/span><\/p>\n

Craft effective ad campaigns<\/span><\/p>\n

Improve customer service<\/span><\/p>\n

Create a tailored <\/span>in-store experience<\/span><\/p><\/blockquote>\n

Modern eye tracking methods are a<\/span>ll non-intrusive. But currently, standard eye tracking technology requires the customer to wear glasses or a headset. As a result, they can adjust their behavior involuntarily or otherwise. Researchers know the phenomenon as <\/span>the Hawthorne effect<\/span><\/a>.<\/span><\/h4>\n

To address the observation bias problem, we now have <\/span>3D eye tracking solutions<\/b> like <\/span>GazeSense<\/span><\/a>.<\/span><\/h4>\n