# Introduction
In the ever-evolving retail landscape, brick-and-mortar retailers face a myriad of challenges. From the growing competition of e-commerce to shifting consumer behavior and rising operational costs, staying ahead requires innovative solutions. One powerful tool that can help retailers address these challenges head-on is customer journey mapping in-store. By mapping the customer journey and analyzing each touchpoint, retailers gain valuable insights to enhance the in-store experience. In this blog post, we will delve into the top five challenges faced by retailers and explore how customer journey mapping can tackle these challenges effectively.

## Challenge 1: Competition from E-commerce
![challenge-1.jpg](/uploads/challenge_1_1_5f70baa3ee.jpg)
In a digital age dominated by online shopping, brick-and-mortar retailers face fierce competition from e-commerce giants. However, customer journey mapping provides a pathway for success. By mapping the customer journey in their physical stores, retailers can identify pain points and areas where the in-store experience can be enhanced. Understanding what sets the physical store apart from its online counterparts is crucial. Retailers can focus on personalized interactions, knowledgeable staff, and immersive experiences that create memorable moments for customers. By leveraging customer journey insights, retailers can craft unique value propositions and differentiate themselves from the online competition.

## Challenge 2: Evolving Consumer Behavior
![challenge-2.jpg](/uploads/challenge_2_1_f08b9ed644.jpg)
Consumer behavior and preferences are constantly evolving, posing challenges for traditional retailers. We see an increase of time-starved shoppers, innovation focused ones and in certain regions, a sharp growth on high-income/affluence ones.  Customer journey mapping allows retailers to adapt and cater to these changing customer profiles and their expectations. By analyzing each touchpoint in the customer journey, retailers can identify areas where adjustments are needed to align with evolving consumer behavior. This includes optimizing store layouts, improving visual merchandising, and enhancing customer service interactions, such as integrating mobile apps for personalized recommendations or providing in-store pickup options for online purchases. Understanding and meeting customer expectations throughout their journey can build customer loyalty and drive repeat business.

## Challenge 3: Rising Operational Costs
![challenge-3.jpg](/uploads/challenge_3_1_ac16f6b4eb.jpg)
Running a physical store comes with various operational costs that can strain profitability, especially in the face of declining foot traffic. Customer journey mapping helps retailers optimize operational costs by identifying areas of inefficiency. By analyzing customer flow within the store, retailers can optimize store layout, improve traffic flow, and reduce operational costs. Streamlining processes, such as checkout and returns, can enhance the overall customer experience while simultaneously increasing operational efficiency. Leveraging technologies like self-checkout or mobile payments can further streamline operations and reduce costs. By identifying and addressing inefficiencies through customer journey mapping, retailers can strike a balance between operational costs and a seamless in-store experience.

## Challenge 4: Omnichannel Integration
![challenge-4jpg](/uploads/challenge_4_1_a255b029d9.jpg)
Creating a seamless integration between online and offline channels is a significant challenge for retailers. However, customer journey mapping provides insights into how different touchpoints interact across channels. By understanding the customer journey holistically, retailers can identify opportunities for integration. This may involve aligning online and in-store promotions, or even adopt unique technology such as Ariadne, that through an opt-in process understands the customer presence in-store and can leverage unified commerce platforms infrastructure to deliver a more personalized sales recommendation from in-store personnel. With a comprehensive understanding of the customer journey, retailers can deliver a consistent and cohesive experience that strengthens their brand identity and encourages customers to engage across multiple channels.

## Challenge 5: Data-driven Decision Making

In the era of big data, retailers need to leverage insights for data-driven decision making. Customer journey mapping empowers retailers to collect and analyze data at each touchpoint, enabling them to make informed decisions to enhance the customer journey. Analyzing data related to customer behavior, preferences, and pain points helps retailers optimize store layout, tailor product offerings, and deliver personalized promotions or recommendations. By leveraging technology and analytics tools, retailers can gain valuable insights and understand the effectiveness of various strategies. This allows them to refine their approach, tailor their offerings, and ultimately create a more tailored and satisfying in-store experience for their customers.

# Conclusion
Brick-and-mortar retailers face numerous challenges in today's retail landscape. However, customer journey mapping in-store offers a powerful solution. By mapping the customer journey and analyzing each touchpoint, retailers gain valuable insights that enable them to tackle these challenges head-on. Whether it's addressing competition from e-commerce, adapting to evolving consumer behavior, optimizing operational costs, achieving omnichannel integration, or leveraging data-driven decision making, customer journey mapping equips retailers with the tools they need to enhance the in-store experience and thrive in an ever-changing retail landscape.
If you're interested in learning more about Ariadne’s technology and how it can help your physical store overcome these challenges, don't hesitate to get in touch. We'd be happy to provide you with more information and answer any questions you may have.



customer-jpurney-mapping.png

Mastering In-Store Success: Overcoming Challenges with Customer Journey Mapping

# Why should we love shopper flow insights?
Retail store layout, or store design, is the layout that retailers use to organize their products, fixtures, and merchandise in brick-and-mortar stores. Traditionally, a primary goal of store layout is to improve shopper flow and maximize sales, leveraging best performing categories adjacencies. The layout designer must consider that people do not navigate the same way in each store. Products (apparel, groceries, furniture, hardware, etc.), demographics, store location,[ available space](https://spc-retail.com/7-store-layout-mistakes-retailers-are-making/), and target customers, all need to be considered when creating specific store layouts.

he post-COVID rebirth of the brick-and-mortar retail requires a customer-centric layout that directly corresponds to the new way that shoppers navigate those stores. Store layout design should not just include enhancing shopper navigation. Insights about the shopper flow patterns allow retailers to optimise the [design of new layouts](https://charleskdesign.com/5-mistakes-to-avoid-when-designing-a-new-retail-space/) that will attract more customers, encourage the impulsive pick up of products and create a memorable shopping experience. Creating the right shopping experience is critical as physical retail still represents most sales and customers expect an experience that can’t be provided online.

Let's see how a well-known retailer used shopper flow analytics and small changes in the store layout to drive a 5X increase in shopper visits to specific areas and increase sales.

# What is happening in reality?
Poor traffic flow is a common issue in retail stores, negatively impacting the customer experience and discouraging shoppers from spending more time exploring the store and purchasing more. Poor category positioning, narrow or twisted aisles, and blocked shoppers’ views are some of the [typical mistakes ](https://charleskdesign.com/5-mistakes-to-avoid-when-designing-a-new-retail-space/)in store layout. Additionally, categories are often placed close to each other based on experience, intuition, and gut feel rather than real data, further confusing shoppers attempting to complete their shopping mission and even upsetting shoppers with overcrowded aisles, departments, and fixtures.

If not addressed, stores will face disorganized traffic flows, cramped product areas, and a horrible customer experience leading to less shopper exploring and decreased sales and loyalty. Ariadne's Shopper Journeyfeature gives retailers the ability to track shoppers and their journeys, including major and minor shopper flows, optimize in-store traffic patterns, and continued enhancement of store layout. The resulting [optimized store design](https://www.dotactiv.com/blog/guide-to-the-perfect-store-floor-plan) enhances the customer experience, increases cross-selling and up-selling, and boosts loyalty and sales.

# What can the retailer do?
A large retailer is using Ariadne's platform to track thein-store shopping journey and optimize the layout of each store. To achieve that, the retailer started with insights from two stores.The comparison of shopper journeys, including dominant shopper flows, revealed good and bad practices significantly influencing the shopper journey.

## 1. Positioning matters
As many studies have found, less visited product areas benefit when they are placed on the right side of more visited or popular areas as customers tend to move to the right. In the illustrations below, two different stores positioned a less visited product category - TV sets in this case - in different locations. By using the Ariadne platform, the retailer was able to see the data proving that when the TV department is placed to the right of the IT department products (Store B), the TV department is visited by far more shoppers compared to visitors resulting from the placement in Store A. This small difference in the TV department location is resulting in 5X increase in TV department traffic and a significant increase in sales.

![positioning.png](/uploads/positioning_042cbad7cd.png)

## 2. Make it last longer
Using Ariadne, this retailer discovered that popular product areas placed at the centre of the store or near the cashiers was interrupting shopper journeys early, resulting in lost sales. Books are one of the top categories for this retailer, so their location in the store has a significant impact to shopper flow. As shown in the illustration below, Store B placed books near the centre of the store. As a result, almost half of the store is rarely visited because customers have already accomplished their intended shopping goal. The placement of books in Store B disrupts the shopper journey, forcing it to end prematurely. However as seen below, Store A placed Books in the back, resulting in a far better customer journey distribution among all departments and across the entire store, impacting both customer experience and sales.

![store-visitation.png](/uploads/store_visitation_07c4327382.png)

## 3. Popular and non-popular: The perfect match
This retailer also learned that placing the most visited product categories side by side disrupted shopper navigation, negatively impacting all product categories. Using actual data, they were able to learn, and see, that putting popular categories next to each other resulting in many shoppers gathering in the same areas and discouraging other shoppers from visiting or passing through those areas. Shoppers were discouraged and decreased additional store exploration, decreasing sales. This effect is even more pronounced post-COVID as shoppers avoid crowded and cramped spaces. A real example of this effect is seen in the illustration below. In Store B the IT department is near Books. As both Books and IT are popular departments they draw the most shoppers, creating the crowd effect and discouraging other shoppers from additional exploration and visiting areas beyond those two departments. With this discovery, this retailer was addressed combining popular with less popular product areas. In Store A, the Major Domestic Appliances (MDA), a less visited department, was placed next to Books, a popular category. The retailer was able to measure the result with Ariadne’s platform, with the data showing that shopper flow was spread out, supporting better shopper journeys, more shoppers visiting more departments, increased exploration of less visited areas, and increased to sales.
![store-visitation2.png](/uploads/store_visitation2_8521d9972b.png)

## 4. Ultimate match, a strategic match
Good store design and layout also enables shoppers to find various products in a more convenient way. By positioning more often visited and less often visited categories that are complementary, the perfect match above is transformed into a strategic match. This design strategy encourages increased store exploration, creates product discovery, and results in increased impulse purchases as well as the cross-selling and up-selling benefits outlined previously. In Store A, shown below, the Toy department was placed in what could be seen as a challenging location. However, because of its positioning adjacent to Children's Books, shoppers visited Toys even more often and the cross-selling impact from Books was 94%.

![detailed-store-heatmap.png](/uploads/detailed_store_heatmap_cd51541c8a.png)

With this strategic match approach, Store A was able to free up valuable space within the shopper's journey by moving Toys and moving MDA adjacent to Books. Although MDA and Books would not seem to be complementary, that move resulted in a 2X increase in visitors to the MDA area and a significant increase to sales as well.

# Conclusion
This real and simple case study proves that retail store layout design is not just about improving navigation. It now requires a deep understanding of shopper flow, including critical insights about customer journeys in specific stores including shopper paths, flow patterns, number of customers, areas visited, time in each area, and more. With this data and insights retailers can design and continuously improve store layouts that support shopper exploration, an exceptional customer experience, increased conversion at store and department level, and significantly increased store performance. Retail winners post-COVID-19 will understand their shopper's journeys through data and insights, allowing them to optimize the customer experience and reap the rewards of increased loyalty and sales.

Want to learn more about how Ariadne supports retailers in tracking shopper flow patterns? Go ahead and book an appointment: Let's Talk!

shopper flow.png

Shopper Flow - Mandatory for Enhanced Customer Experience, Increased Visitation and Conversions

**Airports** are known for being bustling hubs of activity, with thousands of passengers moving through them daily. **Managing passenger flow** goes beyond simply observing circulation; it encompasses **security, technology, passenger behavior, and infrastructure**, and airport operators are overwhelmed with** bespoke solutions** that are popping up in each area to address independent needs. 

#A Challenging Landscape
The market is being flooded with solutions that are hyper-focused in one capability, leaving Technology and Operations departments grappling with the depleted resources and effort of integrating multiple vendors in order to get a clear picture of the entire airport.

![TAL-ontario-international-airport-secuirty-line-ONTNOTPASS1022-192034c889054ad892ef50cd8ef7bd24.webp](/uploads/TAL_ontario_international_airport_secuirty_line_ONTNOTPASS_1022_192034c889054ad892ef50cd8ef7bd24_5c416765d1.webp)

Those challenges are compounded by an ever-increasing passenger volume. The[ 2023 Airport Business Infrastructure Survey](https://www.aviationpros.com/airports/whitepaper/53029156/2023-airport-business-infrastructure-survey) revealed that 54% of airports reported that expanding their capacity is a top priority as they are already operating at their full capabilities. With no room for error, crowded passenger flows are arising at check-in counters, security checkpoints, and post-security circulation areas that lead to long wait times, bottlenecked terminals, and delays. 

# Solution Gaps
Many airports that implemented piecemeal solutions are already finding gaps in their insights and visibility, which makes it difficult to provide value to stakeholders and to justify implementation.

![ariadne-alternative-camea.jpg](/uploads/ariadne_alternative_camea_dba02588c2.jpg)

Cameras, which are necessary for capturing security footage, can also be used to distinguish and count people from other moving objects such as luggage carts and suitcases. However, blind spots and poor camera angles lead to low accuracy, and demographics or counting software can have difficulty when spaces are crowded. Similarly, Time of Flight (ToF) sensors may be easy to install but have a limited range, struggle with accuracy when passengers are in close proximity, and lack the ability to track returning visitors or passenger flow trajectories. 
Other solutions such as LiDAR, Bluetooth, and LTE/GSM networks experience challenges with scalability due to expense or lack of fun
ctionality in typical airport scenarios. Many of these solutions encounter privacy concerns with situations such as facial recognition or data collection. 

# Ariadne: A Next-Generation Offering
Ariadne sought to streamline the technology landscape by building a platform that addresses business intelligence needs while simultaneously providing secure data compliance. 

Ariadne developed small, discrete sensors that detect unique signals emitted by smartphones even when those devices are in airplane mode. The data collection is 100% GDPR compliant and doesn’t collect or store personal information, providing data security and privacy reassurance. 

![ariadne-surveyors (4).png](/uploads/ariadne_surveyors_4_1ad98b60d6.png)

## Accurate Journey Mapping and Analytics
Ariadne’s sensors can detect the location and journey of individual device signals with up to 1 meter of accuracy and includes the ability to determine if a single person is carrying more than one device, or if multiple people are traveling together as a group. Analytics solutions include people counting, dwell time, heatmapping, transitions between areas, and customer paths. All these data provides valuable insights that can inform non-aeronautical revenue decisions, optimize utilization of resources, improve efficiency and reduce waste. 

## Real-Time Data and Alerts

![tilted-analytics.png](/uploads/tilted_analytics_e2362ffd38.png)

Dashboards showing real-time circulation data for the entire curb-to-gate passenger journey, allowing operations and security staff to proactively manage congestion as well as anticipate janitorial or employee scheduling needs. Customized thresholds can be built into the system that alert staff through notifications once the threshold is met, enabling immediate awareness of the entire terminal. 

## Predictive modeling
Historical data is combined with real-time monitoring to identify patterns and trends, allowing the airport to predict and map how changes will impact passenger flow and operations. 

## Additional Solutions
In addition, Ariadne’s platform can also offer ERP integration, sales conversion tracking within airside, workforce management, app-free navigation for passengers and employees, catchment area definition, asset tracking, loyalty rates, and more. 

# Answering the Challenge
The landscape is changing for airports, both in terms of technology and passenger engagement. Ariadne met that challenge and brings a holistic approach to passenger analytics through their unique, secure, and cost-effective solution. Both flexible and scalable, Ariadne provides best-in-class value to airports across the globe. 

[Schedule a demo](https://ariadne.inc/letstalk/) to learn more. 

next-gen-passenger-mapping (1).jpg

Capture Insights with Next-Generation Passenger Mapping

Running a shopping mall is challenging, with the need to ensure tenant and customer satisfaction while maximizing profits. The rise of online retail has changed consumer shopping behavior, and the pandemic further disrupted shopping experiences. To adapt to these challenges, malls need to gather data for informed decision-making. That’s where Ariadne comes in, assisting shopping malls in stepping into the future and achieving their goals by providing various benefits. Shopping malls should strategically focus on offering convenience and experience as added-value elements, as they can't compete with the unlimited product selection of online shops.

Many shopping malls are already focusing their efforts on digitalization and creating unique shopping experiences. To achieve the latter, they are adopting [strategies ](https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-future-of-the-shopping-mall)such as creating smaller shops, hosting a diverse mix of tenants, and catering to specialized niches. Additionally, pop-up stores are being utilized beyond their traditional seasonal and promotion-based purposes.

# Why can the mix of smaller and pop-up stores lead shopping malls to the future?


The mix of smaller and pop-up stores in shopping malls can lead to a more vibrant and successful future for several reasons. Firstly, smaller stores and pop-ups provide a diverse and unique shopping experience that differs from the standard chain stores found in many malls. This appeals to consumers who are seeking something different and personalized.

Moreover, these smaller stores and pop-ups offer flexibility and adaptability that larger chain stores often lack. They allow for the inclusion of additional services and experiences in the mall, such as non-traditional food options, gathering centres, concerts, spas, fitness clubs, and groceries. This transforms the mall into a dynamic and multifaceted destination, encouraging consumers to view shopping as part of a [broader experience](https://www.mytotalretail.com/article/3-ways-malls-retailers-can-win-with-diverse-shopping-experiences/) rather than simply visiting individual mega-stores. 

Pop-up stores, traditionally associated with short-term retail settings, can also serve as valuable testing grounds for established retailers. They enable the testing of new products, evaluation of customer interest, and increased brand or product awareness. Additionally, the inclusion of small and local businesses or young entrepreneurs in malls becomes possible, offering opportunities for these companies that may not have the resources for long-term tenancy.

A successful mix of smaller stores can become a strategic asset for mall owners, complementing the anchor tenants that drive traffic. It brings novelty and unique experiences to visitors, offering more innovative products and services that cater to niche markets, such as luxury brands. Small stores often have knowledgeable sales assistants who provide individualized attention, fostering a sense of community and customer loyalty. Furthermore, the lower overhead costs of small stores allow for more competitive pricing, making shopping in these stores more affordable for customers.


# Why building apps might not be the single way towards the future?

At Ariadne, we have the ability to track the number of customers who have installed the shopping centre’s application, and what we've found is a recurring ratio: one person in one thousand visitors is using the application. So, one in thousand visitors are installing the application of the shopping centre. This might seem counterintuitive, especially if you have personally witnessed tens or even hundreds of thousands of downloads. After all, the number of visitors in the shopping centre is unlikely to exceed twenty-five thousand. So how can this ratio be accurate?

The answer becomes apparent when visualizing the situation using a Venn diagram. If we consider the group on the left to be users who have downloaded the app, and the group on the right to be customers who have visited the shopping centre, then the focus should be on the overlapping region of the two groups. By homing in on this intersection, we can gain a more accurate understanding of how many visitors are also app users and use this information to inform marketing and promotional efforts. To make things even worse, if you wish to obtain spatial analytics, for example to answer questions such as to find the sequence of stores people love to visit together, you need to have your visitors using the application while they are located in the shopping centre.

![mobile-app-dpwnloads.png](/uploads/mobile_app_dpwnloads_7fdb5b6d38.png)

# How can Ariadne guide shopping malls to the future?

Ariadne can act as a gate to the future and help shopping malls in their transition from traditional shopping centres to experience centres in the following aspects:

## 1.	Identify the leasing type
Ariadne’s solutions can assist mall owners in identifying the type, location, and time length of space leasing to pop-up stores. Firstly, location analytics can be used to identify the best locations for such stores that will receive the most exposure based on foot traffic and customer behaviour. Then, the popularity of certain pop-up stores can be measured by tracking how many people visit them and how long they stay. Consequently, mall owners can make data-driven decisions on which stores or categories they should bring back in the future.

## 2.	Optimizing Layout and Design
By analysing visitor geospatial data provided by Ariadne, Shopping Mall owners and property managers will be able to optimize their layouts. Location Analytics provide insights about how people move through space and thus help identify spaces that are overly crowded or underutilized. The adjusted layout can optimize the shopper flow and thus improve the overall customer experience.

## 3.	Creating Unique Experiences
We know that engaging with visitors in a shopping centre can be a challenge, especially when they are looking for a hassle-free experience. Ariadne´s Engagement feature offers a seamless opt-in process that does not require any app installation. Visitors can simply opt-in via our free WiFi network, by scanning a QR code, or by tapping on an NFC. With our innovative approach, we've recorded 200 times more opt-ins than traditional application downloads! What's more, our opt-in rates are consistently high, with up to 60% of visitors choosing to opt-in daily. This means that you can target these visitors directly and easily based on their location within the shopping center.

## 4.	Identifying Customer Profiles
Lifestyle insights can be derived by utilizing the information on the location and trajectory pattern of the visitors, without infringing the data protection regulations. This information can assist shopping malls to create a more personalized experience by sending customized campaigns tailored to their needs or offers to customers based on their trajectories and their current location within the mall. For example, visitors that visit a gym in the shopping mall, and then go to the supermarket or sport related retailers can have targeted marketing activities for promoting products that promote a healthy lifestyle like protein bars. Ariadne’s Opt-in service can also be used for this purpose by pushing these personalized offers to the customers. 

# Why is Ariadne unique ?
Ariadne is the next-generation visitor/shopper analytics platform for Commercial Real Estate, providing **real-time people flow** analytics throughout the** entire visitor/shopper journey**. 

Our patented technology is based on **signal-based tracking** and doesn’t require any camera, beacon, wi-fi joining or any app to be downloaded, leading to** 100% unique coverage of phone holders** and down to** 1m of location accuracy**.

While our multi-layered SaaS solution allows for passive tracking in a certified GDPR compliant manner, it can transform itself into a **powerful omnichannel marketin**g and **navigation tool** when visitors/shoppers opt in.

If you're interested in learning more about our system and how it can benefit you, don't hesitate to get in touch. We'd be happy to provide you with more information and answer any questions you may have.



redesignyourstore.jpg

How to make shopping malls future-proof

# How Can I Use The Heatmap of My Retail Store?
One of the most important tools to understand customer behaviour is the heatmap of your stores. The covid pandemic has spurred digital growth, and retailers must use every technique at their disposal to boost their diminishing profitability and remain competitive.

# What is a Heatmap?
A heatmap is a graph in which complex data is broken down into intuitive images, with data variance represented by changes in colour intensity (see the image below).

![heatmap3d.jpg](/uploads/heatmap3d_9c0f4d0722.jpg)

Usually, the red colour code indicates a high crowded region whereas green is the lowest crowded region.

# What does a heatmap indicate?
The heatmap illustrates how clients march around and in your store. It reveals which sections your consumers prefer to visit, which they avoid, and which they return to time to time again.

Now let's address the elephant in the room: How can I use heat efficiently to improve my profits?

# Identify how your customers navigate
It is critical for a retailer to fully understand how their clients navigate through their store to increase customer satisfaction and get the most return. A series of questions are answered by the heat map:

-What places aren't being frequented, and how can I make the region more appealing?
-What happens when I put my best product in a location where customers rarely go?
-Are my best employees working in the busiest location?
-Experiment in your stores
-Will putting the least often purchased items in the busiest location enhance sales?
-Heatmaps let you visualize the results of your experiment and strategize more effectively.

# Experiment in your store
Heatmaps let you visualize the results of your experiment and strategize more effectively.

Is it logical that changing the store's layout will increase sales?

Is it true that placing my best-selling product in a rarely visited region will boost the number of visitors to that area?

Remove the dead zones
Remember that the sections that your customers do not visit are a financial burden for you. Using heatmaps, you can pinpoint certain regions and act. Is there any reason why customers aren't visiting the location, and is there anything preventing them from being there?

Improve the Customer Satisfaction and Customer Experience
Capturing the attention span of clients is a necessity of the hour. Retailers may accomplish this by marketing and enhancing the consumer experience: understand where your customers frequently stroll and employ more staff in the busiest areas. With Ariadne, you can visualise the heat in real time. When waiting times exceeds a threshold and more people queue at the counters, open new counters right away to serve your consumers. You can use Ariadne's cost-effective Alert System to save resources and increase customer satisfaction.
## 
There are some other limitations with the heatmap which we would like to highlight:

It is not an automization tool; it simply visualizes how successful your areas/products/strategies are.
Only when store managers understand the value and utility of heat, will they be able to take advantage of the analysis. Our experts in-house will be happy to guide you on how to make the best use of the heatmap tool.
We’ll crack the code just now and create a summary. This is a process, and we will explain it steps by steps.

-Create a plan/strategy to follow
-Execute the strategy
-Evaluate the outcome with the heatmaps
-Investigate the discrepancy between your expectations and the actual outcome
-Re-strategize and go through the procedure again
Do you want to track and analyze your audiences accurately in real-time without violating GDPR? Click here to book an appointment with us and get a one-month free subscription.

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heatmap-of-my-store.png

How Can I Use The Heatmap of My Retail Store?

![online-shopping.png](/uploads/online_shopping_bb157a11d7.png)

For decades, physical retailers have relied on intuition and traditional marketing methods to make decisions, but the rise of ecommerce has disrupted the industry. As consumers increasingly turn to online shopping, physical retailers are struggling to keep up. As a response, many traditional physical retailers have attempted without any success at opening online stores of their own. However, opening an ecommerce store is not necessarily the solution, as it requires expertise in various areas such as marketing, pricing, promotions, SEO, and platform selling.

Instead, physical retailers can leverage the power of their physical stores to compete with ecommerce. This is exemplified by global giants such as Apple, Amazon, Zalando, and Casper, all of which started as ecommerce businesses but thrived after opening physical stores.

One key advantage of physical stores is the ability to present a brand through human interaction. Sales representatives in physical stores can provide a personalized shopping experience and build a rapport with customers, something that is difficult to achieve online. Furthermore, physical stores can showcase products and create a tangible experience that cannot be replicated online.

Keep in mind that having loyal customers can provide significant benefits to a business. Loyal customers tend to spend more money and buy more frequently than new customers, resulting in increased revenue. Retaining customers is also more cost-effective than acquiring new ones, which reduces marketing costs. Additionally, loyal customers have a higher customer lifetime value (CLV), generating more revenue over their lifetime. They also advocate for the brand, increasing visibility and acquiring new customers through referrals. Lastly, loyal customers provide valuable feedback to help businesses improve their products and services and meet customer needs.

## SCHEDULE YOUR SALES REPRESENTATIVE
![employee-in-store.png](/uploads/employee_in_store_ff8daa849b.png)

At Ariadne, we have observed that the most advanced scheduling mechanisms utilize sales data. In certain scenarios, users can set sales goals for the week, and the algorithm will generate a schedule that accounts for contractual employee availability. While this approach is sophisticated, it assumes that the conversion rate of visitors to customers is evenly distributed throughout the day. As a result, missed opportunities due to high demand, limited employee skills, or poor visitor experiences are not addressed in the scheduling process, ultimately leading to a decline in customer loyalty, which can impact the strength of the brand and overall revenue.

## AT ARIADNE
![analytics-on-screen.png](/uploads/analytics_on_screen_c557c915a1.png)

At Ariadne, we pride ourselves on offering cutting-edge solutions to help businesses optimize their operations and maximize revenue. Our advanced scheduling mechanisms are designed to provide unprecedented accuracy in forecasting hourly foot traffic for every area of your store, every hour throughout the entire week. By leveraging this information, we are able to generate an optimal schedule that is focused on maximizing the conversion rate of every product.

![unpleased-customer.png](/uploads/unpleased_customer_4563564a4d.png)

The existing scheduling systems do not take into cosideration missed opportunities due to:

1) high demand

2) limited employee skills, or

3) poor visitor experiences.

This can significantly impact customer loyalty and ultimately impact the strength of your brand and overall revenue. To address this issue, our scheduling algorithms are continuously monitoring your processes to ensure they are optimized for maximum efficiency. Our real-time analytics further contributes to the correction of scheduling errors by live communicating with your sales representatives on the field and requesting them to focus their attention on higher obtained opportunities, which may have been impossible to forecast beforehand.

![tilted-analytics.png](/uploads/tilted_analytics_e2362ffd38.png)

Our solution is flexible and designed to adapt to your business needs. The schedule is being altered on a weekly basis, towards a constant improvement of your conversion rate. We also monitor cross-selling opportunities of each product, providing guidance to sales representatives on how to sell and better structure the space. Additionally, our solution tracks the precise conversion rate of every product, enabling us to propose pricing adjustments that can contribute towards increasing the conversion rate of visitors to customers and ultimately maximize your income.

In conclusion, our advanced scheduling mechanisms, real-time analytics, and precise monitoring of product conversion rates provide a comprehensive solution to help your business optimize its operations and maximize revenue. Our team is dedicated to helping you achieve your goals and ensure that your customers receive the best possible experience when visiting your store. If you are interested in Ariadne's advanced scheduling mechanisms, you can get in contact with our team here.

Employee-of-your.store.png

Employees are your store's strongest weapon against E-Commerce. Equip them with the proper tools now!

# How to Cope with the Forecast Decline in Number of Passengers
Airports have experienced the biggest challenge in the industry since its inception with Covid-19. The number of passengers today is still [36% less ](https://www.icao.int/sustainability/Documents/Covid-19/ICAO_coronavirus_Econ_Impact.pdf)than pre-covid levels, with overall reduction of up to 672 million travelers. However, that is not the only big hit to the airports. [Bain & Co predicts](https://www.bain.com/insights/airport-retail-brace-for-disruption/) that there will be a decrease in the share of business travel, along with long-haul groups and Chinese passengers, which means a drop is projected in the luxury goods sales.

To keep their financial sustainability, airports need to re-strategize their marketing and deal with the decline in passenger numbers, among other problems such as the economic crisis we are currently experiencing.;

In this article, I will be investigating the ways how airports are dealing with these challenges and keeping their revenues up.

# Where to focus: aeronautical or non-aeronautical revenues?

The queues are indeed a big trouble for airports that conceals the potential of its retail concessions. We spend an average of $7 for every hour we spend in a terminal; conversely, our spending decreases 30% for every 10 minutes we stand in a screening line. To increase dwell time, airports encourage passengers to arrive extremely early and they invest in expediting the security process.

Would you like to access these solutions for your airport, and track and analyze your passengers accurately in real-time without violating GDPR? Click here to book an appointment with us and get a one-month free subscription.
The revenue streams of airports can be divided into two main sources: aeronautical and non-aeronautical revenues.

Aeronautical revenue makes the majority of the airport income with 54% of total airport revenues (ACI), however, this might change soon. Bain & Co article shows that it might fall down to around 45% by 2025.

![distribution-of-global-revenues.png](/uploads/distribution_of_global_revenues_40fade3774.png)

# Non-aeronautical revenue to the rescue
Non-aeronautical revenues are airport income that is gained from non-flight facilities such as parking garages, car rentals, restaurants and shops.

The facts above are pushing airports to become rather commercial business centers and focus more on non-aeronautical revenues, which makes sense from an investment perspective since it diversifies their revenue portfolio.

Besides, aeronautical revenue per passenger ($9.99) is still less than the cost per passenger ($14.11). This again shows the importance of the non-aeronautical revenues for the financial sustainability of the airport sector.

Below are how leading airports are today successfully dealing with the decrease in the number of passengers:

## Store-mix and Product-mix based on Personas
A forecast reduction in the volume of passengers in the next five to six years creates a new challenge for airport retailers. They need to understand their customers better, and re-define their offerings accordingly to increase passenger penetration in shops, and maintain a sustainable financial source.

To achieve this, they will need more than one persona. They will need to target specific personas with their product-mix, store-mix, integrated experiences... Usually in this step, one might consider the conventional way of dividing their target customer into different personas based on age, gender, race... However, there is a more targeted way.

Ariadne has developed a solution that anonymously creates personas based on which stores/restaurants they have visited. For example, one persona is “people that visited clothing store, shoe store, nutrition shop and sports-clothing shop”. Ariadne has found that this persona's next stop is e.g., 67% a restaurant, 30% another clothing store or he will finish his journey by 3% probability. Below is an example of a product-mix analysis. Based on these personas, Ariadne's airport clients do A/B testing and find what works best for their retail concessions, which is a common practice in the retail industry.

![product-mix.png](/uploads/product_mix_e97f7e41e0.png)

Finally, they will have a better store-mix, and will be able to decide better which area to lease to what kind of shop. This way, they can make sure that the concessionaires are getting the best footfall traffic. Same goes inside the retail store, based on these personas and their trajectories, the customer journey can be improved, product-mix can be optimized, and the services can be better catered.

## Dynamic lease pricing
Airports and retailers usually have fixed and long-term lease contracts. It is also a common practice to include minimum commission from retailer sales on top of the rental fee, e.g., 10% from all the revenue from the clothing store will go to the airport on top of the rental fee.

However, Ariadne suggests a new method for the lease prices. With[ people counting](http://localhost:3003/solutions/people-counting/) and anonymous passenger tracking, Ariadne can analyze how many people spend how much time at what location and how they move inside the airport. Based on this, it can also measure how much footfall traffic each shop receives.

![airport-heatmap.gif](/uploads/airport_heatmap_cbf9e177ed.gif)

nstead of size or the location of the shop inside the airport, Ariadne suggests leasing areas based on relative footfall traffic. The shops that receive the most footfall traffic will be paying more than other shops since the airport would be delivering better results and proving this to the tenant. In addition to absolute numbers such as number of people and queue time and dwell time, Ariadne also provides heatmap of the airport and the stores.

The conversion from this footfall traffic (how many people will become customers) will depend on the in-store success of the tenants.

## The best model of anchor tenant
Ariadne's anchor tenant article defines anchor tenants as a leading, large retailer that has signed an agreement to lease a significant space, mostly in a shopping mall, but also in any given airport, complex, or neighborhood.

Later in the article, it shows that an anchor tenant can be even the smallest shop in the mall or airport… Ariadne has found that a tiny post office inside a mall gets the most traffic. This tiny post office then converts its visitors to other shops in the mall.

![airport-vending-machine-1.png](/uploads/airport_vending_machine_1_d677759680.png)

Airports have even a bigger opportunity, automated retail units, to direct their passengers and convert them to other stores.

Automated retail units are becoming more and more common, with a presence in 53% of North American airports, according to the ACI's Concessions Benchmarking Survey. These vending machines are low-cost (almost no labor cost) and small in size, and produce significant income for the airport.

They can take the role of an anchor tenant if managed smart. The most demanded products can be sold at cheaper than airport-average prices and that would increase the number of customers. If these machines with high traffic are placed well in the store-mix, they can be a significant source of footfall traffic for other stores. According to anchor tenant article again, they convert more than 25% of their visitors to other stores.

![airport-retail-analysis.png](/uploads/airport_retail_analysis_c2283bca44.png)

# Queue Management and Virtual Queuing
According to ACI, 60% of all the operating costs are labor related. It is not only due to the number of employees, but also due to the difficulty of the hiring process. An airport is mostly situated very far from the city center and that makes finding the talents way more challenging. They need to offer better terms and more attractive compensation packages, so the candidates will prefer the airport over another employer. Not only the compensation, but also the background checks make it harder to employ staff. Airports are the first gateway to a country, and governments make the airports do a strict background check during the hiring process which again comes with extra cost.

![airport-operating-expenses.png](/uploads/airport_operating_expenses_d291e7e36e.png)

Since airports are investing so much capital into labor force, they need to make sure that the return is justifying this investment. For example, the staff handling the passengers, they need to ensure that the passenger satisfaction is high. A study titled 'The Impact of Airport Servicescape on Passengers' Satisfaction' found that passengers who have a positive airport experience spend 45% more money while in the airport than disappointed passengers.

There is a [forecast reduction](https://www.bain.com/insights/airport-retail-brace-for-disruption/) in the number of passengers in the next five to six years. This highlights the importance of passenger satisfaction, and penetration in shops for the growth. There are a multiple ways Ariadne can support on this purpose, for example [queue management](http://ariadne.inc/solutions/queue-management/), [automatic people counting](http://ariadne.inc/solutions/people-counting/) in the queues and measuring the waiting time, and alerting employees once it exceeds the threshold, or [virtual queuing](http://lariadne.inc/solutions/virtual-queuing/). 

![queue.jpg](/uploads/queue_fd3d2bcdaa.jpg)

The queue becomes virtual and the passenger gets notified when it is his/her turn to proceed.

![virtual-queue.png](/uploads/virtual_queue_cb62c1701a.png)

The queues are indeed a big trouble for airports that conceals the potential of its retail concessions. We spend an average of $7 for every hour we spend in a terminal; conversely, our spending decreases 30% for every 10 minutes we stand in a screening line. To increase dwell time, airports encourage passengers to arrive extremely early and they invest in expediting the security process.

Would you like to access these solutions for your airport, and track and analyze your passengers accurately in real-time without violating GDPR? [Click here](http://ariadne.inc/letstalk) to book an appointment with us and get a one-month free subscription.

airport concession (1).png

How to Cope with the Forecast Decline in Number of Passengers

# Impact of Anchor Tenants in a shopping complex

Anchor tenants are critical to the success of a retail shopping centre. They attract customers and generate footfall for the Shopping centre as a whole, and other tenants use this free traffic to convert the visitors into their customers.

## What is an anchor tenant?

Do you know that a grocery store not only brings visitors to its own but also helps bring audiences to the nearby stores?For example, if Aldi moves into your centre, it will attract other retailers to open stores in your complex as people shop at Aldi for their essential needs and visit nearby stores for casual shopping. Here, Aldi acts as an anchor tenant that not just attracts customers to its own but also the nearby shops, increasing the overall sales of the shopping area.

An anchor tenant is a leading, large retailer that has signed an agreement to lease a significant space, mostly in a shopping mall, but also in any given airport, complex, or neighborhood. The term "anchor" comes from the idea that an anchor will keep ships from drifting due to their size and weight.

Anchor tenants also aid in the sales of other retailers, and contribute to the overall success of the retailers in their surrounding area by being a passive actor that drives overall customer engagement.

## Are you really my anchor tenant?

My first question was… who is really the anchor tenant? To answer that, I went through a sample of shoping centers to detect their anchor tenants, detect who actually brings in the most traffic. In the figure below, I have visualized which sectors the anchor tenants belong to.

![anchortenantsaveragetraffic.jpg](/uploads/anchortenantsaveragetraffic_1034d50edd.jpg)

The results were quite interesting! On Average, 23% of the shops in a shopping area are Anchor tenants, which includes Grocery stores, DIY, and small shops like the post offices, ATMs, Kiosk and Cigarette shops. Out of all the Anchor tenants,** 60% of them are Grocery stores** and they are the primary footfall generators for the shopping centers. However, we must remember that they also occupy the largest space in their complex.

## Is it Important to have an Anchor tenant around you?
## My next step was to investigate if the anchor tenants really deserve the privilege of having **big space and low rent.** To measure this, I compared the average visitation of an anchor tenant against the other retail stores.

![averagenumberofvisitorsperstore.jpg](/uploads/averagenumberofvisitorsperstore_14d8bcb03a.jpg)
**
An Anchor tenant attracts around 5 times more visitors **than an average store in a shopping mall. This might be one good reason to have a more flexible leasing contract for an anchor tenant.

## How do you measure the Pie shared by you and the Anchor tenant?

But do they actually help the other stores get more visitors? This is a very difficult question to answer, since it is hard to quantify how many of their customers actually go to other shops after their visit. To answer that, I got help from **Ariadne Analytics**, just **exported their dashboard with a simple click.**

![anchortenantconversion.jpg](/uploads/anchortenantconversion_8dc8afd5b4.jpg)




anchortenants.jpeg

Impact of Anchor Tenants in a shopping complex

# 8 Data-Driven Steps to Re-Design Your Store
In this digital era of retail stores and E-Commerce, still, 73.4% of the customers prefer to shop in physical retail stores. Hence, It is crucial to design your retail store in the right way to optimize your space, increase customer-product interaction and maximize your sales. Even though there are some existing common strategies that every retailer uses to maximize their sales, designing a layout for each store is different and it's not easy. It is both an art and a science — a blend of creativity, psychological insights, and analysis.

In this article, we’ll try to explore the ways and tools through which you can implement to plan the arrangement of your store.

## Step 1: Selecting Retail Store Layout
The type of layout you will choose is mainly based on your space, the shopping experience you are trying to create, and the products you sell.

There are different layout styles but mostly six types of layout are used.

**Grid:**The grid floor plan is also called a straight layout. Grid floor plans are mainly used in convenience and grocery stores, where customers need to find items quickly. It is also suitable for small businesses.

**Loop:** Another name is racetrack layout. This layout maximizes wall space and leads shoppers to a guided pathway. This layout slowly shows shoppers different products. It is mostly used in apparel, accessory, toy, homeware, kitchenware, personal care, and speciality retail stores.

**Free-flow/Mixed:** The free-flow layout delegates the retailer to showcase their brand through imaginative designs and floor plans. It is also used in apparel, specialty brand, and mixed-use stores like cafes that also display books.

**Diagonal:** The diagonal floor plan is an open center floor with several displays. Especially tech and electronic stores, and beauty and cosmetics retailers use this floor plan. This design focuses on creating open sightlines to attract buyers to certain products.

**Forced-path:** Commonly known as guided plans, forced-path layouts use an open entryway followed by one pathway that directs shoppers through the store. This plan is seen in furniture stores, such as IKEA and it enables impulse sales.

**Angular:** The angular floor plan uses small displays in the center of the store that highlight featured items. This floor plan is typically used by jewelry, designer, and handbag stores with high-end merchandise.

Determining which retail store layout will work best completely depends on brand image, products, and customers. Lots of retailers gained success by combining two or more layouts.

One way to make a data-driven decision is to use Ariadne’s analytics solution and compare the success of different layouts or combinations.

In the figure above from Ariadne’s dashboard, it is shown how many people have visited the Outdoor Shoes section. But instead of 331 people and 7.8 dwell time, it might have been 500 visitors and a higher/lower dwell time if the store layout was different.

The layout selection also affects your cross-sales performance. If you have the right layout for your store, and successfully positioned the products, then you might expect a much higher return. How to measure if it is the right layout or successful placement? You can compare the number of people transiting from each section to other sections, factor in your sales data, develop different strategies and measure the change. This way you will make sure that eventually you have the best performing version of your store.

## Step 2: Design a blueprint of your store layout

An alternative is to use digital tools to draw/digitize your floor plan. For example, Ariadne lets you draw your floor plan yourself on the digital map and show you predictions when you make a change in your layout; predictions on number of people, dwell time and more.

# Step 3: Examine traffic flow & customer behaviour

One of the biggest things that your store layout will influence is customer flow. It is quite a debate whether the customer should be directed clockwise or anti-clockwise. But if you think rationally, most people are right-handed, by nature they turn to the right and explore the store in a counter-clockwise direction.

But it depends on the customer's behaviour. So, the main purpose is to avoid creating discomfort and evoke a positive customer experience. A layout that works with your customers’ natural shopping habits will help you create the best customer experience.

## Step 4: Place your checkout & measure performance

Checkout is the area that houses your point-of-sale (POS) system or cash register where customers pay for their products. A good rule of thumb could be the natural stopping point in the shopping experience that you’ve intentionally designed. For example, If your customers naturally turn right when they enter, then the front left is probably the perfect location for your checkout counter.  However, it also depends on the size and layout of your retail store.

Not only the location, but also the performance of the checkout area is critical. It plays a major role in the overall customer satisfaction, which plays a direct role in your revenues. As seen in the figure above, you can see in real-time the performance of your checkout area, and take precautions to minimize the waiting time.

## Step 5: Use smart product positioning

Once you have visualized your floor plan, it is time to start product mapping. When placing your products, do so in a way that ensures customer engagement, that creates a positive experience and drives your sales.

## Step 6: Optimize Products With Fixtures & Displays

Ensure that your product supplies are appropriate to customer demand. Have enough space between products and fixtures. Most importantly, your aisles and displays should allow customers enough personal space when browsing your products.

Or you can think about closing a gateway to increase your traffic to other products. Some products with high conversion potential may be placed somewhere in the back and missing out a high traffic. With some changes in the layout and product placement, you can manage the customer flow.

## Step 7: Add Comfort Zones & Customer Amenities

While the majority of a store’s design is based on visual components, other factors — adding scent, touch, sound, and taste — can also make a huge difference in a store’s look and feel. If you wish to create a truly mesmerizing in-store experience, design your store to appeal to as many shopper senses as possible.

Grouping your merchandise into neat categories is a great strategy, but this will be possible if you can find room to cross-merchandise different items. Discover products in your store that would go well together and put them on a single display.

## Step 8: Ensure Your Store Is Reachable To All

To ensure your space is reachable to all, you can follow the guidelines of the Americans with Disabilities Act. There are many rules that retailers have to take care of to ensure that spaces are navigable and comfortable. For example, you can have a special parking space, keep accessible bathrooms open during business hours, always clean the fitting rooms, and ensure your customers know about your features by posting accessibility information on your website and store, educating staff so they can provide in-store assistance.

# Conclusion

Ultimately, these practices will help you create a retail design that’s a win-win for both you and your customers. Your store‘s traffic, dwell time, and sales are directly affected by your store layout.

That’s why it’s important that you spend the time and resources in such a way that makes sure the look and feel of your stores are on point. Also, don’t forget when it comes to layouts and displays the work should always be up to date. So keep searching for trends, update product displays and freshen up your layout.

Ariadne can help you to design or re-design your store by analyzing the data of people visiting your stores in Realtime without violating the GDPR. To learn more about this click here to contact us and get one month's demo subscription for free.

Do you want to track and analyze your audiences accurately in real-time without violating GDPR? Click here to book a meeting with one of our experts and get a one-month free subscription.

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