How to measure offline marketing performance with AI-powered audience analytics

While online advertising has gained significant traction, it is crucial to recognize the impact of offline marketing, especially in industries where a considerable percentage of consumers still prefer to shop in-store. This article will delve into how to measure offline marketing performance in retail, focusing on visual merchandising, digital in-store signage, and understanding the customer journey through shopper insights and marketing analytics.

The power of offline marketing

Offline marketing for retail businesses continues to play an integral role in reaching potential customers and increasing brand awareness. It encompasses several traditional advertising methods, such as print ads in offline media and magazines, television and radio commercials, billboards, direct mail campaigns, and promotional events. While online marketing has seen a significant surge in recent years, the impact and reach of offline marketing channels still make them a valuable tool for retail businesses.

The role of retail offline marketing

However, the most effective time to promote a product is when prospective customers are in the "ready-to-buy" mode, which usually occurs in the store. Retail visual merchandising is a strategic marketing tool businesses utilize to stimulate customer interest and increase sales. It involves the strategic arrangement and presentation of products in-store to encourage customers to purchase.

In-store advertisement

Offline ads have evolved, with digital signage playing a crucial role in this transformation. This innovative approach is interactive and effective in grabbing customers' attention in offline retail environments. It allows retailers to display immersive and dynamic content that can influence purchasing decisions. Digital signage in offline retail promotes real-time marketing, allowing for quick changes in ads, product information, or promotional offers depending on inventory, customer behavior, or market trends. Therefore, it has become essential for enhancing the customer experience and maximizing sales in brick-and-mortar stores.

The layout of the products

The layout of products in offline marketing retail is an essential aspect that significantly impacts consumer behaviors and purchasing decisions. This strategic merchandise placement within a store can guide customers through the space, influencing their product interaction and overall shopping experience. The right product layout can enhance visual appeal and increase sales while making it easier for customers to locate and interact with the merchandise. Therefore, it is crucial for offline marketing retail stores to carefully consider their product layout to ensure they align with their target customers' preferences, shopping habits, and expectations.

Brand modules

The brand module is a critical component in the business strategy, particularly in the offline marketing retail sector. It encompasses the brand's identity, values, and messaging, which is crucial in shaping customer perception and driving customer loyalty. The brand module plays an instrumental role in offline marketing retail strategies, helping businesses to distinguish themselves in the competitive retail market. Effective implementation of a brand module can significantly enhance visibility, recognition, and profitability in the offline marketing retail sphere.

POS displays

Point-of-sale (POS) or point-of-purchase (POP) displays are a crucial aspect of offline marketing retail strategies. This is the precise moment when a customer completes a transaction, usually at the checkout counter. With carefully curated product displays and promotional messages, offline retail marketing can significantly influence consumer behavior at the point of purchase. Therefore, retailers must pay attention to the importance of optimizing their point-of-sale strategies to enhance customer experience and boost sales.

Visual merchandising

Other visual merchandising tools include window displays, lighting, and fixtures. These visual merchandising tools create an appealing retail environment that captivates consumers and enhances their shopping experience.

Example of retail advertising

Once inside the store, customers are welcomed by dynamic rotating exhibits featuring a variety of shoes, complemented by expansive digital screens.

How to measure marketing offline performance

Visual merchandising is not just about creating an attractive store layout; it is a strategic tool that can significantly improve a retailer's marketing ROI. It can play a pivotal role in a business's success by influencing key performance indicators.

Sales revenue

Sales revenue is a fundamental part of any business's financial health, and offline marketing retail strategies are crucial in driving these revenues. Accurately tracking and analyzing this revenue can help firms identify successful product lines and market trends, adjust pricing strategies, and make informed decisions to drive future sales.

Sales volume

Sales volume is a vital metric that measures the total number of products or services sold within a given period. It's an essential indicator of a company's performance and the effectiveness of its sales strategies, including offline marketing retail.

Conversion rates

In offline retail marketing, conversion rates refer to the proportion of customers who enter a store and complete a purchase. Businesses should invest in effective offline marketing strategies to boost their conversion rates.

Basket size

The basket size in offline marketing retail refers to the number of items or the total value of goods a customer purchases in a single transaction. Increasing the basket size is one of the primary objectives of offline retail marketing strategies. Businesses employ various tactics such as cross-selling, upselling, and offering discounts on bulk purchases to encourage customers to buy more products, increasing the basket size.

Customer satisfaction

Offline marketing retail businesses must deliver exceptional customer service, ensure product availability, and create a pleasant shopping environment to enhance customer satisfaction. By doing so, they retain and attract new customers, building a loyal customer base and gaining a competitive edge in the market.

Challenges in assessing the effectiveness 

Assessing the effectiveness of visual merchandising in a retail environment can be challenging due to several factors.  

Lots of elements

A broad range of elements, including window displays, store layout, lighting, signage, and product positioning, contributes to the overall shopping experience and can influence consumer behavior differently.

Subjective nature of visual appeal

What may be visually attractive to one customer may not necessarily appeal to another. Therefore, developing a one-size-fits-all visual merchandising strategy that appeals to a diverse customer base can be challenging.

Significant investment in terms of time and resources

It may take a while before significant trends or patterns emerge from sales data following such changes, making it difficult to assess the effectiveness of different visual merchandising approaches quickly.

Customer journeys

To measure the effectiveness of offline marketing efforts, retailers must understand their customers' in-store journey. This includes the path customers take from entering the store, the products they interact with, and what they purchase. Thus, analyzing each stage of the customer journey can provide a complete picture of the effectiveness of in-store marketing when analyzing sales metrics alone does not provide such a picture.  

AI-powered audience analytics

Several innovative technologies today, such as AI analytics sensors that can be installed in-store, can provide valuable insights into the customer journey. These technologies can analyze offline audiences that can help retailers improve their marketing strategies.

Foot traffic analysis 

One of the key performance indicators (KPIs) for offline marketing performance is foot traffic, which refers to the number of people entering the store during a specific period. Increased foot traffic often indicates successful window merchandising or online campaigns. In addition, analyzing foot traffic by shop zone can show the most trafficked areas, hence a high margin. 

Dwell time

Dwell time measures how long customers spend in the store or the specific areas of the store. A metric shows whether you have created a pleasant atmosphere and provide clear navigation. 

Conversion rates 

You can find out the conversion rate using the total number of visitors and the number of visitors who made a purchase. 

Сustomer-oriented design  

A helpful insight you can gain about your audience is combining your system's purchase data with the dwell-time in-store from DISPL. This way, you can see the correlation between purchases and time spent in the store and draw more conclusions about the motivations and goals of the audience visiting your shop. For example, a person came into the store, walked around the shop for a long time, and made a lot of purchases. A second person comes in, walks quickly around the store, and makes a few purchases. If you know the proportion of these audiences and understand who makes you more profit, you can effectively change the shop's visual merchandising. 

Attention time 

Attention time refers to the time customers spend looking at specific products or displays. Given the specifics of your store, you can choose any number of times and watch similar statistics, for example, by brand module, shelf, shopping gondola, or content on the screen. Thus, you can conclude the effectiveness of any offline marketing tool.  

Audience demographics 

AI sensors can detect the age and gender of offline audiences, specifically in the case of DISPL, which is legal and does not violate laws. You can look at the demographics of not just all visitors but by specific criteria, for example, among those who have made a purchase or walked around the shop for a long time, who are interested in the content on the screen or the brand module of a particular brand. This provides excellent opportunities to get to know and understand your audience. 

Screen performance

Screen performance has become a crucial aspect in today's digital age. Adequate attention to screen performance can significantly enhance the effectiveness of digital signage. The offline content displayed on these screens must be compelling to capture the viewer's attention for an extended period. As such, attention time becomes a critical metric in assessing the performance of the screen content. By optimizing screen performance, businesses can ensure that their digital signage effectively communicates their message, maximizing their investment return.

Conclusion

While the rise of online channels has revolutionized the retail landscape, offline marketing remains crucial in reaching customers, particularly those who prefer the in-store shopping experience. By leveraging real-time video AI analytics and understanding key metrics such as foot traffic, dwell time, conversion rates, attention time, and audience demographics, retailers can measure and optimize their offline marketing performance, enhancing their overall customer journey and driving sales.