Technological innovation is transforming the retail industry in unprecedented ways. Many brick-and-mortar stores are shuttering as consumer purchasing moves online. At the same time, some e-retailers are expanding into physical storefronts. As retailers attempt to create seamless, integrated brand experiences, both the role and format of brick-and-mortar is being redefined.
Historically, decisions on new physical stores were made using a combination of market analysis, historical benchmarks, management intuition, and often just imitating the competition. But this combination is missing a key ingredient: e-commerce analytics. By leveraging predictive analytics tools, retailers can use their customers’ digital behaviors to better quantify the volume, nature, and source of demand, and thus optimize storefront locations and formats.
Spinnaker's “Store-Site Identification Solution” is an intelligent algorithm that identifies new geographic markets, incorporating historical purchase data and behavioral patterns from physical and online channels. Retailers can utilize these insights to optimize location, format, and marketing campaigns, thereby creating a seamless engagement with the customer — leading to profitable growth.