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This Frost & Sullivan Analyst Briefing introduces an approach that is helping retailers better understand both their customers and their own operations by harvesting analytics from the Wi-Fi that many of them are already providing to shoppers. - Designed to benefit a wide range of attendees, including: - Every retail or e-tail organization, and individual retailers of all types and sizes - Every brand that sells through either the retail or e-tail channels - Every brand that utilizes mobile technologies for sales and retention activity - Every company that plays a role, or could, in equipping retailers to better compete Listen On Demand: https://www.brighttalk.com/webcast/5567/94057
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The HUMAN BOUNCE RATE: Can (and Should) Retail/Wi-Fi Analytics
Help Retailers Survive in the Age of Amazon?
The HUMAN BOUNCE RATE: Can (and Should) Retail/Wi-Fi Analytics
Help Retailers Survive in the Age of Amazon?
JEFF COTRUPEGlobal Program Director
Big Data & Analytics (BDA)Stratecast | Frost & Sullivan
JEFF COTRUPEGlobal Program Director
Big Data & Analytics (BDA)Stratecast | Frost & Sullivan
Today’s Presenter
Jeff Cotrupe, Global Program Director, Big Data & Analytics
Stratecast | Frost & Sullivan
Follow me on:
http://xeeme.com/JEFF
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Industry Expertise:
�Big Data, analytics, and business intelligence (BI) incorporating these component areas:- Big Data core: platforms, applications, systems, and services- Online/digital analytics and marketing including site, social, mobile, and video
- Customer experience management (CEM): application performance monitoring (APM), customer service assurance (CSA), quality of experience (QoE), and customer experience analytics (CEA), and social network analysis (SNA); key area of focus: Video QoE
- Mobile commerce management (MCM), a category Jeff defined that includes mobile marketing, advertising, and commerce infrastructure, ecosystems, and solutions
�Operations/business support systems (OSS/BSS); Cloud; enterprise IT management
Interested Parties
� Every retail or e-tail organization, and individual retailers
� Every brand that sells through either the retail or e-tail channels
� Every brand that utilizes mobile technologies for sales and retention
� Every company that plays a role, or could, in equipping retailers to better compete with e-tailers (and each other)
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Retailers Face a Cartful of Challenges
� Declining incomes
� Brand switching
� Brand extension = brand confusion
� Smartphones make smarter (or at least more elusive) shoppers
– Battleground in the Aisles
– Groupon, Living Social
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– Groupon, Living Social
Battle For Customers: E-tailers Have Big Data Advantage
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Source: Euclid Analytics
Retailers Are Checking Out Retail/Wi-Fi Analytics
� RWA calculates times, locations,MAC addresses of devices
– …with Wi-Fi turned on
– …detected within coverage area
of a Wi-Fi network
� By logging MAC address: retailer (or any organization)
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retailer (or any organization) can identify and track devices
� RWA applies location and other advanced analytics to the data
Source: STRATECAST
RWA Bears a Striking Resemblance to Online Analytics
Retail/Wi-Fi Analytics: SHOPPERS
� How many mobile devices pass by
a store, and how many enter?
� How many total shoppers are in a
store, both on average and at
specific times?
� How many visit more than once,
and how often do they visit?
Online Analytics: SITE VISITORS
� How many visitors enter a site,
from which referring pages?
� How much traffic is a Web site
receiving? What are its busy and
quiet hours?
� How many unique site visitors?
What is their visit frequency?
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and how often do they visit?
� How much time do they spend per
visit, and what do they do?
� Which purchases occur when a
given mobile device passes
through a store checkout?
What is their visit frequency?
� What is their visit duration and
level of engagement?
� How many conversions is the site
achieving, with which (and which
types of) visitors?
Stratecast defines the rate at which
customers leave a store, in less time than
would make them likely merchandise
buyers, as The Human Bounce Rate.
Stratecast defines the rate at which
customers leave a store, in less time than
would make them likely merchandise
buyers, as The Human Bounce Rate.
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Leading RWA Providers, and How They Collect Data
PROVIDER METHOD
� Shoppers have retailer’s mobile app on smartphone
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� Shoppers log into retailer’s Wi-Fi network
� No action required by shoppers
Other Important RWA Providers
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RWA is Touching Off Privacy Concerns…
RWA functions similarly to “cookies”
on the Web: it allows commercial
interests to instantly access personally
identifiable information (PII)
about shoppers.
RWA functions similarly to “cookies”
on the Web: it allows commercial
interests to instantly access personally
identifiable information (PII)
about shoppers.
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� By triangulating MAC addresses against point of sale (POS) data, retailers can find out exactly who shoppers are
� Even if users/shoppers do remain anonymous, as RWA providers and other advocates claim…
– RWA can help retailers develop extremely detailed
profiles about shoppers
– This can support highly intrusive marketing behavior
…and Action by Government and Watchdog Groups
� Future of Privacy Forum (FPF)– Think tank led by Internet privacy experts
Jules Polonetsky and Christopher Wolf
– Seeks to advance responsible data practices
� Wireless Registry
– Do Not Call Registry in the U.S.: telemarketing
– Wireless Registry: RWA. (Protect consumers from
retailers tracking/using personal and behavioral data)
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retailers tracking/using personal and behavioral data)
� Mobile Location Analytics Code of Conduct
– Sets industry-wide standard for protecting
privacy re: mobile device data
– Defines rules of engagement for retailers/providers
– Key contributors: FPF, U.S. Congress
(Sen. Chuck Schumer), RWA providers
� Some providers getting ahead of the curve:
opt-outs, in-store notices
Stratecast: THE LAST WORD
� Retailers and RWA providers: respect shoppers; respect PII
HOWEVER…
� Focusing privacy concerns solely on bricks-and-mortar retailers is naïve: every move consumers make on an e-tailer’s site is tracked/analyzed/leveraged for some commercial purpose
� Proven for 100 years: consumers more than willing to be inconvenienced or give away private info in exchange for value
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inconvenienced or give away private info in exchange for value– Put up with commercials in exchange for entertainment: radio-TV-cinema-video
– Any consumer who has ever submitted personal information on a Web site, or
filled out a card for a raffle
� Retailers may do a better job serving customers if they can collect and crunch Big Data to figure out what customers want
� Retailers should turn a negative into a positive:– Build RWA into promotional strategies
– Shoppers who do not opt out of monitoring for RWA purposes get access to
DEALS and CONTENT no one else receives
Next Steps
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join our GIL Global Community
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For Additional Information
Britni Myers
Corporate Communications
Information & Communication Technologies
(210) 477-8481
Jeff Cotrupe
Global Program Director
Big Data & Analytics (BDA)
Stratecast
(760) 643-0921
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Perry Somers
Sales Manager
Stratecast
(360) 416-4982
