Identifying and Replicating a “Good” Store: How Theatro Moves Beyond the Obvious
Leveraging Theatro for Retail Success and Store Behavior Insights
At Theatro, my mission is to help retailers maximize Theatro’s potential by leveraging the revolutionary field of store behavior insights. By tracking and measuring employee communication, movement, and behavior patterns, we uncover valuable stories about a store’s ecosystem. This emerging field poses unique challenges, particularly in distinguishing correlation from causation.
The Challenge of Isolating Store Behavior Patterns
While isolating and investigating correlation versus causation is a fundamental analytic concept, applying it in the realm of store behavior analytics is challenging due to the lack of established baselines. This is the significant challenge we face in store behavioral analytics. However, the rewards at the top of this mountain are immense. Using Theatro to identify, scale, and replicate ideal store behavior patterns can yield a gold mine of value.
Defining a “Good” Store Behavior Insights
We intuitively understand that a store performs better when managers are actively involved on the floor, driving daily action plans, and ensuring associates are knowledgeable and responsive. But how do we quantify and validate these performance metrics? What benchmarks do we compare against?
A common retail truism is that top-volume stores can succeed despite themselves, while low-volume stores may be maximizing their potential. So, what metrics truly define a “good” store? Is it Voice of the Customer (VOC), sales, percentage to plan, comp, or turn? Establishing these key metrics and determining the benchmarks that reveal beneficial store behavior patterns is crucial. This will help us drive the behavior patterns that maximize each store’s sales potential.
Measuring Store Performance with Voice of the Customer (VOC)
One primary way to rank a good store is through the Voice of the Customer. Listening to customer feedback is invaluable, but it comes with challenges. Is the data stable? Is the sample set large and consistent enough? Are only certain types of customers providing feedback? Despite its potential instability, VOC is a crucial input in defining a good store.
The Role of Sales in Store Performance
Sales are undeniably a significant factor in overall store performance. However, large stores in high-traffic areas have inherent advantages. Theatro Analytics can provide insights into performance dimensions such as response time, floor coverage, and issue escalation, offering a deeper understanding of store performance beyond mere sales figures.
Theatro’s Insights for Low-Volume Stores
Low-volume stores in challenging locations might still exhibit excellent management and customer service, despite struggling with foot traffic. Theatro Analytics helps reveal these hidden gems by providing insights that go beyond traditional metrics.
Combining Metrics for a Comprehensive View
To measure customer loyalty and identify a good store, retailers need to combine multiple metrics into a single aggregate value. Sales revenue, conversion rates, growth trends, and stable VOC results are key indicators. Theatro Analytics offers the unique ability to correlate and establish causality between store behavior patterns and customer loyalty, applicable across all stores in the chain.
Theatro’s Proprietary Data and Unique Insights
With Theatro’s proprietary data and unique insights, we can paint a multi-layered view of store performance. Our analytics help retailers replicate the right combination of managers, associates, and benchmarks to achieve a highly efficient ecosystem. Correlation, causality, and customer loyalty are all achievable with Theatro.
Unlock the Potential of Store Behavior Insights
Theatro’s insights empower retailers to understand and replicate the ideal characteristics of a “good” store’s employee behavior across their entire chain. By leveraging our analytics, retailers can drive customer loyalty and maximize sales potential.
