How customer behaviour is changing
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1 DIANE WEHRLE Marketing & Insights Director How customer behaviour is changing www. spring-board.info
2 SPRINGBOARD
3 Data and insights on customer activity, and store and retail destination performance Footfall and sales High Streets Retailers and retail centres Continuous, immediate data Complete retail bricks & mortar landscape Shopping Centres Out of Town
4 Coverage of the bricks & mortar retail landscape 1492 footfall counting locations 120 million footfall counts per week 411 shopping sites across the UK UK coverage England, Scotland, Wales, NI 93% correlation to spending 16 years of data since 2002
5 Some organisations who work with us
6 Look out for our data and comment in the media
7 Register on our website to receive our insights springboard research springboard_inc
8 What footfall tells us about customer behaviour
9 What footfall tells us about customer behaviour Relationship of footfall to sales When customers shop The success of stores in attracting customers
10 Millions Spend Relationship of footfall to sales Weekly Footfall
11 When Customers shop - by day of the week 13% 14% 14% 14% 16% 18% 11%
12 When Customers shop - footfall across the day 5.7% 6.6% 14.5% 73.1% Morning: 12am-9am Evening: 5pm-8pm Day: 9am-5pm Night: 8pm-12am
13 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 When Customers shop - footfall peaks at lunchtime
14 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 When Customers shop - differences between days Mon Tues Wed Thurs Fri Sat Sun
15 When Customers shop - footfall across the year
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17
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19 The success of stores in attracting customers The Capture Rate
20 What is the Capture Rate? % of footfall from street/mall Size of store entering a store Market share of a store in its location Brand Strength Competition
21 Why is the Capture Rate important? Measure of how a store is performing relative to its location Increasing CR outperforms the location Decreasing CR underperforms the location Knowing your CR helps you to plan and evaluate
22 Capture Rates UK % % 11.3%
23 Capture Rates by Retailer Category
24 Using the Capture Rate to evaluate store performance Store underperforming its location Store outperforming its location
25 Using the Capture Rate to evaluate store performance Store 1 Store Footfall Store 1 Street Footfall Store 1 Capture Rate Store underperforming its location 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10.0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Store outperforming its location
26 Using the Capture Rate to evaluate store performance Store 1 Store Footfall Store 1 Street Footfall Store 1 Capture Rate Store underperforming its location 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10.0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Store 2 Store Footfall Store 2 Street Footfall 11.0% Store 2 Capture Rate Store outperforming its location 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4.0% Mar Apr May Jun Jul AugSepOct NovDec
27 Using the Capture Rate to evaluate store performance Weekly Capture Rate 23.4% 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Total Monday Tuesday Wednesday Thursday Friday Saturday Sunday
28 Using the Capture Rate to evaluate marketing and promotions Store footfall 5,000 customers pw Footfall in the street \ 100,000 pw Store's Capture Rate 5% Promotion works Promotion retains 5, , % 5, , %
29 Footfall Trends
30 The Influence of Online Shopping
31
32 8a m 2p m Read news, check s, meetings, bank balance, weather, train times Meet for business, check s, shop online, network with friends, pay bills, send texts, tweets 6p m 9p m Check travel report, record TV, FaceTime family, read books, check in for flights, get recipes for Catch up on missed TV, check s, network with friends, check tomorrows schedule, set alarm
33 Estate Agents Travel Agents Post Office & deliveries Banking
34 The growth in online spending Food 6.3% Non Food 26.5% Food 11.5% Non Food 48.0% Source: CRR
35 Impact on Footfall 35.0% 30.0% Footfall 30.0% 0.0% -5.0% 25.0% 20.0% 15.0% 10.0% 5.0% 7.1% 10.6% 16.5% 17.8% 22.7% -10.0% -15.0% -20.0% -25.0% 0.0% Source: CRR -30.0%
36 Impact on Footfall (2008 to 2017) Total Average pa High Streets -17.4% -1.9% Shopping Centres -13.6% -1.6% Out of Town +8.5% +0.9%
37 The customer journey STARTS IN ENDS IN Store Web Mobile 91% 2% 2% 25% 64% 5% 25% 9% 56% Store Web Mobile Source: Foresee
38 The high street is not dead -0.03% Shopping Centres High Streets -1.6% -2.4% -1.7% -1.1% -0.7% -1.0% -1.4% -1.4% -2.6% -2.0% -1.9% -1.1% -1.8% -0.9% -1.4% -2.1% -3.4% -3.1% -4.7%
39 Increasing influence of experience Day time (09:00 16:59) Evening (17:00 20:59) Night time (21:00 08:59) 0.4% 0.6% 0.8% -1.1% -0.5% -2.4% Average
40 The Eating Out Market Increase in Consumer Spending July 08 to July 17 Quick Service Restaurants +25% Casual Dining Chains +59% Coffee Shops +39% All retail +8.1% Non-store retail % Source: NPD Crest % of spend Breakfast Lunch Dinner Total Snack 12% 34% 26% 12%
41 Key Trading Days % change in footfall from the previous year 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% Latest year Previous year Black Friday weekend 2017 (Fri to Sun) Boxing Day 2017 Easter weekend 2018 Early May Day Bank Holiday weekend 2018 Spring May Day Bank Holiday weekend 2018
42 Christmas Trading Period pattern of footfall Boxing Day Footfall vs Black Friday % -6.3% -6.4% -6.1% -8.3% Week 48 Week 49 Week 50 Week 51 Week 52
43 Outcomes for customers.. And therefore for reta
44 Outcomes for customers.. Greater choice More knowledgeable Higher expectations More demanding Experience matters Point of difference makes more of a difference
45 Outcomes for customers.. and therefore for retailers Greater choice More knowledgeable Higher expectations Exploit customers Create an experience Maximise flexibility More demanding Experience matters Point of difference makes more of a difference
46 QUESTIONS Diane Wehrle Marketing and Insights Director, MSc MCIM MMRS SFIPM E
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