Ipsos Retail Performance. Retail Analytics Dictionary.

There are a lot of terms in retail analytics. You are likely to come across them when reading articles and posts, but do you know what they mean? This dictionary focuses on Retail Analytics and aims to uncover the meaning of such words, their variant terms and acronyms that are sometimes used.

Term: ARRIVALS
Variant terms: N/A
Acronyms used: N/A 

Customers who physically arrive and check into an appointment booking / queue system such as Qmatic or Qudini solution as examples. Often used in Service based environments such as technology stores but could also play into areas such as Kitchen planning, personal shopper sessions.

Term: AUGMENTED REALITY
Variant terms: Virtual Reality
Acronyms used: AR

Combining technology and real world environment to provide an immersive enhanced customer experience and drive buying decisions e.g. Ikea uses AR to show customers what furniture would look like in their homes.

Term: AVERAGE TRANSACTION VALUE
Variant terms: Basket Size
Acronyms used: ATV

The average value of each purchase transaction over a defined time period, calculated as:
ATV = total sales value / number of transactions.

Term: BACK OF HOUSE
Variant terms:
Acronyms used: BOH

Term used to distinguish the area of retail the customer do not see, where activities such as stock retrieval, cashing up etc are performed.

Term: BRICKs AND CLICKs
Variant terms: Omni-Channel; Single Channel Retail
Acronyms used: N/A 

A phrase used to link up a physical store with an online ecommerce proposition.

Term: BRICKS AND MORTAR
Variant terms: N/A 
Acronyms used: N/A 

Refers to physical stores.

Term: Click and Collect
Variant terms: N/A 
Acronyms used:  N/A 

Where customers buy products online via a website and then come into a store to collect the item ordered. These customers provide upside opportunity for further sales in-store.

Term: Comp Store Sales
Variant terms: Same store sales  
Acronyms used:  N/A 

The measurement of productivity in revenue, comparing sales of retail stores that have been open for a year or more, a pre-eminent measure in retail but be careful without the context of traffic and conversion rate metrics this can be misleading even given its status as a KPI

Term: CONVERSION RATE
Variant terms:
Acronyms used: CR

The percentage of customers that purchase from a location over a defined time period, calculated as:

Conversion Rate = the number of till or cash register transactions / Traffic.

(A transaction may have multiple products, but is only counted as one transaction.)

Term: CUSTOMER BEHAVIOUR
Variant terms: N/A
Acronyms used: N/A

Understanding of the way customers use stores – understanding the customer experience in order to improve the stores performance.

Term: DEAD STOCK
Variant terms: Unmoving inventory
Acronyms used: N/A 

Stock that is unsold or has been in stock for some time. Often applies to seasonal products but may simply be those that are not in demand.

Term: DWELL TIME
Variant terms: N/A
Acronyms used: N/A

The amount of time spent in a location. Increasing customer dwell time increases their propensity to spend in a location. Malls have worked on this in recent years by increasing the number of food and beverage locations, the same principles apply down to individual zones in retail stores

Term: e-COMMERCE
Variant terms: N/A
Acronyms used: N/A 

Where customers buy products online via a website for delivery to a location be that home or to a store for collection.

Term: ELECTRONIC POINT OF SALE  
Variant terms: N/A
Acronyms used: EPoS

In store computer systems that perform numerous functions, including payment processing, sales, stock inventory and gathering customer data.

Term: FRONT OF HOUSE  
Variant terms: N/A
Acronyms used: FOH

Term used for customer facing area, where roles such as sales assisting, till operations, changing room attendance are carried out. Typically moving more resource from the back of house to the front of house is a good thing to achieve creating more customer facing time, which should result in more sales

Term: INVENTORY TURNOVER
Variant
terms: Stock turnover
Acronyms used: N/A 

The cost of items sold divided by the average inventory. It is an analysis of the frequency of stock sold within a set time frame e.g. a month, year etc

Term: Key Performance Indicator
Variant
terms: N/A
Acronyms used: KPI 

A term used way beyond retail,  basically one of the key figures that the business will be measured by

Term: LOSS LEADER
Variant
terms: N/A
Acronyms used: N/A 

A product sold below its cost price in order to generate footfall and attract new customers who might shop more widely from across the store which will drive profit.

Term: M-COMMERCE
Variant terms: N/A
Acronyms used: N/A 

Where customers buy products via a mobile device, whether via a website or using the device to pay in a bricks and mortar store.

Term: MISSED OPPORTUNITY
Variant terms: N/A
Acronyms used: N/A

Missed opportunity is the calculation of the No Shows (to an appointment booking) x ATV

Term: MOBILE PAYMENTS
Variant terms: N/A
Acronyms used: N/A

Payments made by a customer using a mobile device as a contactless payment method, as opposed to cash or a card.

Term: MULTI-CHANNEL RETAIL
Variant terms: N/A
Acronyms used: N/A

A sales strategy that involves multiple channels to drive sales, such as bricks and mortar store, online retail and catalogues.

Term: NEW TRAFFIC
Variant terms: N/A
Acronyms used: N/A

Is the measure of active Wi-Fi devices detected by Wireless Access Points for the first time, note each time an individual gets a new device it will be seen as a New Traffic. Typical cycle of a Cell/mobile phone is every 18 Months. Further for the initial period of setting up an environment to capture this data all traffic will be by its nature be defined ‘New’

Term: NO SHOWS
Variant terms: N/A
Acronyms used: N/A

Customers who make an appointment, but then do not physically check-in to an appointment booking/queue system such as Qmatic or Qudini solution as examples.

Term: OCCASIONAL TRAFFIC    
Variant terms: N/A
Acronyms used: N/A

The measure of active Wi-Fi devices detected by Wireless Access Points that return on a predetermined, periodic cycle. 

Term: Omni-Channel    
Variant terms: Bricks & Clicks ; Single Channel Retail
Acronyms used: N/A

A phrase used to link up a physical store with an online ecommerce proposition.

Term: PLANOGRAM
Variant terms: plano-grams, plan-o-grams, schematics
Acronyms used: PGO

Visual representation of where products in a store should be situated.

Term: POP UP SHOP
Variant
terms: Pop up
Acronyms used: N/A 

Setting up a temporary shop or retail space that can be used to test new concepts, brands ranges and to increase brand awareness in a new market.

Term: POWER HOURS
Variant terms: N/A
Acronyms used: N/A

These are the Peak sales hours and can be viewed by opportunity, traffic or by best Conversion period or best sales period, there is often a variance. By understanding these areas using statistical distribution the periods can be factually understood and acted upon  to maximise returns.

Term: QUARTERLY SETS
Variant terms: N/A
Acronyms used: N/A

Traffic data viewed over a 13 week period.

Term: REGULAR TRAFFIC
Variant terms: N/A
Acronyms used: N/A

Is the measure of active Wi-Fi devices detected at Wireless Access Points that return on a predetermined, consistent cycle.

Term: RETAIL PERFORMANCE GRID
Variant terms: RPG
Acronyms used: N/A

A two by two grid with individual stores plotted in relation to one another against two axis’s of CR and Traffic. A further dimension can be added to denote ATV by the size of the store bubble. this can be used to determine high level approaches to be applied to the stores, more marketing perhaps or greater operational execution.

Term: RETAIL TRAFFIC INDEX
Variant terms: N/A
Acronyms used: RTI 

A tracker of Footfall data. Comparing one’s own data, versus the equivalent aggregated data of the industry/industry sector/industry region

Term: S-COMMERCE
Variant terms: Social selling
Acronyms used: N/A

Using social media to drive the sales of goods, whether on or offline.

Term: SELL-THROUGH RATE
Variant terms: Sell Through Analysis
Acronyms used: STR

A percentage representation of the stock received from a manufacturer vs. the volume of stock sold. A comparison.

 

Term: Single Channel Retail
Variant terms: Bricks & Clicks ;Omni-Channel    
Acronyms used: N/A

A phrase used to link up a physical store with an online ecommerce proposition.

Term: SHOPPER GROUP
Variant terms: Buying group
Acronyms used: N/A

Not every person who enters a store is a potential customer. For example, in a lingerie shop a husband and wife will enter, in most cases just one purchase or transaction will be made even though two individuals were counted. Using in built logic of the more sophisticated counting devices, this can be deemed to be a shopper group of one and thus will affect the CR % achieved

Term: SHOPPER INDIVIDUAL
Variant terms: N/A
Acronyms used:N/A

Counting of every person who enters a store as a potential customer, which will affect the calculation of the CR%

Term: STAFF STRETCH
Variant terms: Staff Ratio
Acronyms used: SS

Is the measure of customers to staff over a defined time period, calculated as:

Staff Stretch = the number of customers / the number of staff.

Term:  STOCK KEEPING UNIT
Variant terms: N/A
Acronyms used:
SKUs

A distinct type of item for sale (as defined in the retailer’s inventory management system).  The SKU is intended as the most granular level when dealing with inventory.

Term: SUGGESTIVE SELLING
Variant terms: Cross Merchandising
Acronyms used: N/A

A way of encouraging customers to buy additional items to their original intended purchase, an example would be when buying a suit it is common practice to suggest complimentary shirts and ties to increase the basket value.

Term: TILL TENSILLITY
Variant terms: N/A
Acronyms used: TT

Number of shoppers/number of tills open in a defined time bucket.

Term: TRAFFIC
Variant terms: Footfall
Acronyms used: FF

The count of individual customers, either shopper Individuals or Shopper groups, entering a location over a defined time period.  Typically derived from automated electronic counting devices at entrance thresholds.

Term: UNITS PER TRANSACTION
Variant terms: N/A
Acronyms used: UPT

Is the measure of the number of individual items in a single sales transaction.

Term: OCCUPANCY
Variant terms: Capacity
Acronyms used: N/A

The number of people within a defined area/venue at any point in time. Typically used to manage capacity to a defined maximum point. This allows the maximum opportunity into the ‘retail’ space whilst not exceeding any local restrictions imposed by perhaps mall operators or building regulations.

Term: ZONAL
Variant terms: Departments, Aisles
Acronyms used: N/A

The traffic and dwell in defined areas, such as departments or aisles

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