A/B TESTING FOR CATEGORY MANAGEMENT STRATEGIES: THE VALUE OF LOCATION AND IN-STORE ANALYTICS

This case study reports the value of location and in-store analytics to support category management decisions.

CHALLENGE AND OPPORTUNITY

If it is true that 70% of consumers’ purchase decisions are still made at the shelf, the importance of the right product in the right place at the right time and price still is essential. Category managers are often overwhelmed by lots of data and sources of information to drive the best performances for their assigned categories. Because of this, something so complex as the unpredicted in-store customer behaviour is left out of the equation.

But is in-store customer behaviour really so hard to be analysed?

RETAILERIN IN-STORE ANALYTICS

In-store analytics is the way to get useful insights on how customers behave inside the physical store and set strategic and operational strategies accordingly. To provide full support to category management decisions, in-store analytics must comply with two requirements:

  1. be built on top of highly accurate tracking technologies to be able to tell in which aisle or in front of which end-cap display customers are standing
  2. provide full knowledge on customer behaviour from entrance to checkout, integrating in one solution data from POS and planograms.

RetailerIN is an advanced in-store analytics solution for grocery stores. Starting from the tracking of shopping trolleys and baskets with great accuracy (<1 meter), RetailerIN maps the full shopping journey from entrance to checkout and integrates with sales information to understand how different store layouts and product placements affect customer behaviour and sales.

Among others, one valuable feature RetailerIN in-store analytics provides is the possibility to carry out A/B testing in the brick and mortar world, by taking two stores with similar layouts and socio-demographics and experimenting new placements.

A/B testing with RetailerIN allows to analyse the impact of different category management strategies on the full shopping funnel and, specifically, on these KPIs:

  • traffic
  • dwell time
  • sales
  • shopping session segmentation
  • cart/basket preference.

To learn more about A/B testing for Category Management strategies, fill in the form on the right.

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