Cost Saving Tips for Retailers
February 12, 2025
Joseph Stiglitz is one of the most renowned economists of our time. He once criticized the current economic system after the great recession of 2008. He said that the current system is skewed in favor of the rich. This economic system is no longer capitalism. It is a strange combination of capitalism and socialism wherein […]
Traditional economic theory assumes that all money is fungible. The meaning of the word fungible is “interchangeable.” Hence, according to economic theory, if we have $100, the value of that should be the same for us regardless of how that was obtained. However, behavioral finance theory argues that this is not the case. According to […]
In the previous article, we understood about how high-yield bonds have emerged as one of the biggest market segments in the fixed income securities market. However, before an investor decides to commit a part of their portfolio towards high yield bonds, they must be aware of the various types of advantages and disadvantages that these […]
The retail sector has been under significant financial distress in the recent past. An alarmingly large number of retail companies are facing bankruptcy proceedings in courts across the world. However, it needs to be understood that bankruptcy proceedings and liquidations are not a preferred solution for creditors either. Before creditors initiate bankruptcy, they generally try […]
The Indian banking system is reeling under a glut of Non Performing Assets (NPA’s). The unpaid debts of Indian corporations and households have risen to alarming levels. High level bureaucratic meetings are being held to get rid of this menace. Nonperforming assets could appear on the balance sheet of banks. This could cause a ripple […]
The retail sector has started using data and analytics in a big way. In general, data and analytics is used extensively by online players in the retail sector. This means that companies like Amazon and eBay have traditionally been collecting data extensively from their customers and have also been using this data to make business decisions. However, this practice was not very prevalent in the offline retail sector.
Traditional retailers had very limited access to consumer data. Some organizations would use rudimentary technology such as pen and paper and counters to keep a track of the number of people visiting a store at any particular time. However, this data was not very accurate and also quite difficult to collate.
Over a period of time, companies started paying close attention to the effect of information related to footfall.
Retailers discovered that footfall analysis could benefit their decision making process in a number of ways. Also, the technology which enables collection of footfall related data also became much more accessible to retailers.
In this article, we will have a closer look at what footfall analysis is and also the business benefits which are likely to accrue to a retailer if they do engage in footfall analysis.
Footfall analysis can simply be defined as the process of tracking the number of prospective customers which enter a retail store within a particular period of time. The idea is to not only keep a count of the number of people entering and exiting the stores but also to keep an eye on the behaviour patterns of the people once they are inside the store.
Retailers often divide their stores into segments which allow them to track footfall movement within each segment. The data derived from tracking such movement can provide significant insights.
For instance, a retailer might find out that customers visit the electronics section of a store only on certain days of the week and at certain times. On the other hand, the apparel section of the store may be showing consistent footfall on all days. The retailer can then use this information while making decisions about promotional events and other strategies.
It is also important to note that the technology which facilitates footfall analysis has grown by leaps and bounds within a short span of time. Retailers can now use infrared tools, heat maps and even video cameras to automatically derive information related to footfall.
Footfall analysis is important because the data is used in several business decisions which have a huge financial impact.
Footfall analysis helps retailers place these products at inconvenient locations whereas placing products that they want to promote at eye level on the way. Such type of product placements has proven to be very effective at increasing sales.
Retailers can ensure that their promotional dollars are spent in such a way that they get maximum bang for their buck. This may include instore promotional events as well as promotional spends which are done on mass media.
Store management can use this data in order to make meaningful decisions which impact the customer experience. For instance, the store management may decide to open up more cash counters so that customers do not have to wait in long queues to get their products billed.
Retailers which tend to use footfall data while staffing their employees have a much lower probability of being understaffed as compared to their peers.
The fact of the matter is that footfall analysis has become very advanced over the past few years. New technologies are making it convenient to derive data almost in real time.
It is also important to understand that the data derived from such analysis is now used in important decision-making processes. Hence, footfall analysis has now become a strategic tool which is used by retailers across the world to enhance their profitability.
Your email address will not be published. Required fields are marked *