Identifying unmet needs and improving customer experience
Main street shopping precincts have traditionally incorporated a range of community facilities and events that help drive traffic to these areas. Managed shopping centres have typically focused on achieving a tenant mix designed to meet the needs of potential shoppers and employ marketing staff to co-ordinate centre based activities and promotions to drive traffic to the centres.
Increased competition has led to a blurring of the lines and an increase in investment in community facilities and community events taking place in managed centres. The increase in purchases on-line are creating new headaches for retail landlords – how much will the market shrink, what investments can they make to shore up foot traffic and retail turnover?
Compounding these issues is the fact that while landlords make direct investments in the assets, they are dependent on the performance of retailers, and their control over retailers is limited to decisions on tenant mix and lease matters.
In these circumstances doing what has worked in the past may not be sufficient, nor is the solution likely to be held in black box advanced analytics and data mining.
Our solution to these issues has 2 key components. The first is to pour new life into current market sizing and benchmarking methods by using new data to identify the size of the addressable market for a shopping
centre/location, and the patterns of use of other shopping areas by those people in the catchment. This data is
analysed by role at time of visit (resident, visitor, worker) and time of day/day of week of visit and visit duration.
The second uses de-identified data from wi-fi networks to better understand usage of shopping centres, patterns of store visit and purchase behaviour. This data (we call ‘revealed choice’) is then linked with specialised research into understanding what is important to peoplewhen they shop in the centre, and what’s missing from the ideal experience (‘stated choice’). These metrics are developed for shopper archetypes which are then mapped back to the addressable market.
The insights developed from these 2 components improves assessment of current performance and potential
and identifies key needs (both met and unmet), allowing improved decision making on asset investments, tenancy mix and local promotional activity.