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

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For Additional Information

Britni Myers

Corporate Communications

Information & Communication Technologies

(210) 477-8481

Britni.myers@frost.com

Jeff Cotrupe

Global Program Director

Big Data & Analytics (BDA)

Stratecast

(760) 643-0921

jeff.cotrupe@frost.com

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Perry Somers

Sales Manager

Stratecast

(360) 416-4982

Perry.somers@frost.com