Shopper research: consumer tracking using Wi-Fi technology

It’s vital for marketers to understand consumer behavior at the retail location, where the “first moment of truth” plays out.

Indeed it has been said that all brand choice decisions are made at the point of sales... after all this is where consumers are continually faced with the option of switching to a competitor brand.

Market research activities have traditionally tended to focus on new product development and the optimization of advertising. But now there is a shift towards the greater use “shopper research” with its stated objective of explaining consumer behavior at the point of sales. The typical methodologies used for shopper research are videography and in-store observers.

Quarter 2 2006 will see the launch of a new wireless (Wi-Fi) system that will greatly enhance the quality of data and analysis available to retailers and manufacturers alike.

Wireless Shopper Tracking System (STS)

The new Shopper Tracking System, developed by JMI, uses Wi-Fi tags to track the location of consumers as they move around the store engaging in their natural browsing and purchasing behavior. Shoppers who agree to participate carry the tags, which are about 5cm square, receive an incentive or discount.

The tags work by triangulating the location of the shopper. This is done by sensing the strength of the signal from the wireless network at each point in the store that the tag passes through. If necessary, the store’s own wireless network can be supplemented using radio antennae, but the infrastructure set-up is minimal, a key selling point for this system.

Initially this system will provide quantitative data on:

·	Consumer navigation paths in the store
·	Traffic densities (heat maps)
·	Time spent at various locations
·	How POP and promotional displays may drive these patterns

In addition exit interviews will allow supplementary data to be collected allowing for segmentation of basic outputs.

Unlike with cart-based systems, shoppers will hold on to the tags during their store visit, thus offering an inherent advantage in terms of the quality of the tracking; shoppers of course often move around independently of their carts to gather products.

The benefits

The Shopper Tracking System will provide benefits to retailers and manufacturers alike.

For retailers it will provide a comprehensive mapping of the movements of their customers. This will allow them to optimize store layout on an ongoing basis and to obtain a reading on the relative value of various locations in terms of traffic.

For manufacturers, purchasing vs non-purchasing behaviors can be analyzed as well as insights provided into specific category (and cross-category) related behaviors.

Of course the end-benefits should be higher sales and levels of customer satisfaction.

Future developments

The initial launch version of the Shopper Tracking System will focus on capturing and analyzing traffic related data. However, in later upgrades it is intended to:

·	Link traffic data to POS data from the register. This will allow for systematic computation of conversion rates (traffic to sales) according to store location.
·	Use RFID (Radio Frequency Identification) tags on POPs, products and other marketing materials in store. This will allow for the measurement of very specific interactions e.g. how long a consumer stands in from of a promotional shelf

In addition, complementary analysis, to explain the observed traffic behaviors, can be provided by combining with Consumer Vision Goggles (CVG) or Eye Tracking studies.

As interest in Shopper Research continues to grow worldwide, Wi-Fi and RFID technologies are poised to revolutionize the field and take category management to the next level.

For more information on JMI Shopper Tracking System please contact:
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