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Green Hills' Video System Measures Impact of Displays

Green Hills' Video System Measures Impact of Displays

SYRACUSE, N.Y. Green Hills, a one-store independent here known for its advanced loyalty programs, is using its digital video surveillance system coupled with analytical software to measure the effectiveness of its signs, displays and promotions. With video analytics and metrics, we can not only measure the traffic flow in and out of our store, but also aisle conversion rates [the percentage of shoppers

SYRACUSE, N.Y. — Green Hills, a one-store independent here known for its advanced loyalty programs, is using its digital video surveillance system coupled with analytical software to measure the effectiveness of its signs, displays and promotions.

“With video analytics and metrics, we can not only measure the traffic flow in and out of our store, but also aisle conversion rates [the percentage of shoppers going down an aisle] and dwell time in front of certain categories, displays, brands, etc.,” said Gary Hawkins, president, Center for Advancing Retail & Technology (CART), and chief executive officer of Green Hills, at the LEAD Marketing Conference last month. The technology also enables him to measure purchase conversion rates (the percentage going down an aisle and purchasing something) and break down customer activity by hour, day and week.

Green Hills has had the video analytics system, from BVI Networks, San Jose, Calif., for about one year. By using it to evaluate the effectiveness of in-store promotions, Green Hills stands to burnish its relationships with manufacturers and have a better shot at their shopper marketing budgets. “For the first time, marketers and retailers are beginning to understand what is happening in stores,” said Hawkins.

Video analytics is one of the consumer-focused technologies Hawkins has implemented at Green Hills, which he is also positioning as a learning center for retailers and manufacturers interested in exploring what he calls the “Retail 3.0 ecosystem.” A pioneer and consultant in loyalty marketing systems, Hawkins has accumulated more than a decade worth of customer-identified transaction data, which he uses in personalized marketing programs that impact up to 70% of his weekly turnover.

In one test of the video analytics at Green Hills, conducted with Nestlé, Hawkins studied the effectiveness of two-foot-square off-shelf candy displays. He found that product exposure increased almost 500% and the number of shoppers engaged grew by more than 300%. In addition, dwell time was 30% longer at the displays than at category shelves.

In a test of the cereal aisle, Hawkins found that normally 20% of shoppers went down that aisle for an average of 23 seconds and 47% purchased a brand. One of the brand manufacturers created a “shelf showcase” calling attention to the brand and conveying information about the products. This caused aisle traffic to increase “more than any other promotion,” and the number of shoppers engaged to rise more than 200%, he said.

On the other hand, dwell time decreased in the cereal test. “It's thought that by calling out where the cereals were, it helped shoppers be more efficient in the shopping process,” he noted.

Hawkins believes that optimizing in-store activity in this way represents “a new front in retail competition.” At his store, “we are seeing the impact that promotions and displays can have on aisle traffic around the store.”

Green Hills, he added, is able to drive shoppers down a particular aisle to purchase promoted product. This has put a premium on in-store execution, leading Green Hills to explore implementing a task-management system.

TAGS: Marketing