How Brick-and-Mortar Retailers Use Foot Traffic Analytics to Get a Leg Up
At bottom, this software category allows retailers make data-driven decisions on such matters ranging from acquisitions to leasing to marketing, tenant mix, and operations.
LOS ALTOS, CA— Foot traffic analytics is shifting the playing field for brick-and-mortar retail, giving these brands a leg up in their competitive battles with online retailers.
Also called mobile location analytics, this field provides new visibility into consumer behavior. Location analytics collects data on the movement of individuals and presents it as an aggregate picture. It answers such questions as Where do people shop? What days do they go to a specific restaurant and at what time does that restaurant see the most visitors? How did they get there and where did they visit afterward? Visualizing this movement yields behavioral data that can lead to improved performance.
This data can also surface customer journeys, brand preferences and cross-shopping trends. Ultimately, this software category allows retailers make data-driven decisions on such matters ranging from acquisitions to leasing to marketing, tenant mix, and operations.
One example of a company in this space is Silicon Valley-based Placer.ai, which is a provider of an advanced foot traffic analytics platform. It has access to a percentage of overall phones and uses AI to model and project an overall estimate for the total number of visitors. This functionality has been used by retailers in various ways.
Vestar, for example, is a property acquisition, management, and development firm that manages over 30 million square feet of commercial property nationwide. It wanted to increase the value of one of their shopping centers in Northern California and believed that adding an experiential dining option to the center would increase dwell time. The leasing team was courting a regional microbrewery, but the prospective tenant was skeptical that the market could support another location without cannibalizing their existing stores.
Using foot traffic analytics, the leasing team proved there was a void in the market and that the shopping center’s customer base matched the brewery’s targeted demographic profile and shopping behavior. The brewery is in discussions to expand its footprint and become a tenant.