Description
Historically, shopping centre developers focused on two areas; capital cost and rental return.
There was no real interest in "the shopper" and the developer's mission was to maximise rent
almost in isolation of consumer demand.
THE ROLE OF MARKET RESEARCH IN
THE MODERN SHOPPING CENTRE
BACKGROUND
Historically, shopping centre developers focused on two areas; capital cost and rental return.
There was no real interest in “the shopper” and the developer’s mission was to maximise rent
almost in isolation of consumer demand. The focus of “marketing” was the successful completion
of lease so the industry tended to have a b2b emphasis. Meadowhall, which opened in 1990, was
the first centre to count shoppers and used light beam technology to do this. Developed by
International Blueprints, this innovation raised eyebrows in the industry at the time but was eagerly
embraced by the retailers who were able, for the first time, to put their sales results into an
objective context. The flow of data allowed tenants to be made aware of seasonal movements and
thus be more prepared for sales uplifts with more staff and stock. Promotional impact could be
scientifically measured for the first time and this feedback to retail partners led them to understand
that optimising the deployment of service charge funds was a shared responsibility, not a centre
management open cheque.
However in the example below Centre A with a higher gross footfall generates a 19% lower
turnover than Centre B as a result of a lower conversion rate and lower average party spend. In
other words footfall data are not reliable metrics in isolation.
Accordingly International Blueprints identified the following as some of the most important
measures for shopping centres:
DWELL TIME
An increase in dwell time can be brought about by an improvement in the retail mix or improved
catering facilities. It can also be influenced by improved facilities for children as this reduces stress
for both mother and child. Dwell time improvement correlates positively with average spend per
visit and the highest shopping dwell times in the large Regional Shopping Centres attract the
highest spends.
Although urban Centre dwell times are typically around 60 minutes, the impact of an improvement
in dwell time is nonetheless significant. We should bear in mind, however, that although increased
dwell pushes up spend, it tends to reduce visit frequency. The aim should be to increase dwell per
annum which is the product of frequency and dwell as this reflects that the Centre is enjoying a
higher share of time and hence of expenditure.
PARTY SIZE
Most shop visits are solo, so average party size is under 2, typically around 1.6. An improvement
in party size usually produces an increase in spend. Women dominate the shopper population and
their preferred choice of shopping companion is another female friend. They regard their male
partners as impatient kill-joys who inhibit their browsing, whilst children are not popular shopping
companions as their attention span does not coincide with their mothers. Hence when a woman
shops with children and/or partner it means that she will be shopping for the whole family and
thus average spend per trip tends to be higher.
The large Regional Centres have large parties and at weekends over 60% of parties have at least
one child present to boost spend. The challenge with party size growth is that it can reduce dwell
time unless there are decent facilities for men and children for example, a reasonable choice of
casual dining options.
VISIT FREQUENCY
The number of non-food trips made each year as an average is around 65 per annum. This does
not include trips to retail parks, supermarkets or designer outlets which in total are about 130
trips. For urban centres the key is to receive on every visit to the town centre. It should be noted
that marketing campaigns to target the secondary or tertiary catchments can produce an increase
in shopper flows and revenues, but are likely to result in an apparent drop in frequency as
frequency falls with the distance travelled. Again, as noted earlier, a fall in frequency is often a
harbinger of an increase in average spend and vice versa.
CONVERSION
Retail parks and regional malls enjoy conversions of 90% for reasons which are logical. More
routine trips to urban malls have a strong element of browsing or retail therapy. This can produce
conversion levels as low as 50% although the mean is around 60%. Conversion levels are
inhibited by myriad factors – stock availability, congested tills, indifferent service, etc. It is difficult
for centre management to intervene on these issues but we have found that using the mall’s
common areas to promote retailers is an effective mechanic. It is also effective to cluster retailers’
promotions into seasonal themes and to distribute these as leaflets at point of sale. International
Blueprints believe that attacking conversion is the most cost effective marketing tactic as you are
addressing real shoppers who are physically within your Centre. There is an additional benefit as
there is a positive correlation (0.67) between conversion and average spend. That is, on 67% of
occasions as the conversion rate rises, so too does average spend.
AVERAGE PARTY SPEND
This variable is largely driven by the size of the Centre, its location and the retail mix. It is impacted
however by all the other variables mentioned above. Higher dwell, larger party size and larger
conversion all tend to increase average party spend, whilst increased frequency tends to reduce it.
SHOPPER SATISFACTION
It is axiomatic that people spend more money when they are in a positive and contented state of
mind. We have applied regression analysis to the shopper satisfaction scores we have recorded in
over 200 shopper surveys and discovered that there is a positive correlation between customer
satisfaction and average spend.
QUANTITATIVE RESEARCH
Quantitative market research is typically used to measure a number of these ‘indicators’, however
we at International Blueprints believe that this form of market research becomes even more
powerful when used in combination with Qualitative
market research.
QUALITATIVE RESEARCH
The strength of qualitative market research to Shopping Centre owners is that it enables Centre
Management to take each of the aspects of the business such as conversion, frequency, dwell and
probe for the reasons for particular behaviour.
Beyond this, qualitative market research is particularly valuable for more abstract work concerning
communications. Given the high level of investment in branding, advertising, PR and promotions,
some measure of pre-testing is prudent and responsible and qualitative research is a particularly
powerful tool in this respect.
Within the consumer goods industries the once standard mega-survey “The Usage and Attitude
Study” has been replaced by simple behavioural surveys supported by focus groups which address
each element in the mix.
MYSTERY SHOPPING
The third approach, that of Mystery shopping, is also used extensively in Shopping Centres. A
mystery shopping programme is a unique way of collecting customer feedback as well as
measuring customer service operations. The mystery shoppers questionnaire is developed in
conjunction with current operational and brand standards to ensure that the measurement reflects
that particular Shopping Centre’s key performance indicators (KPIs). Our key product in the
shopping centre sector is Looking Glass™ however we are also able to develop bespoke solutions.
As well as paper-based presentation we also offer a web-based format which provides live data
and allows all levels within the organisation to access appropriate visit reports using a dynamic
reporting function. Business Blueprints (founded by Stephen Logue of International Blueprints) have
to date conducted around 10,000 mystery visits to retailers throughout the UK.
Trained mystery shoppers evaluate their experience in each location on the basis
of four detailed criteria:
• Presentation of the shop and retail staff
• Standards of Service provided by retail staff
• Levels of Expertise displayed by staff
• The standard of the close of service i.e. Farewell
Retailers are scored using a weighting system on the above four criteria (which accounts for 90%
of their potential score) plus a further 10% which can be achieved for ‘exceptional service’. The
exceptional service is given out in the form of “happy face” tokens which are typically redeemed at
the Information Desk for a small cash reward. Centre management teams (i.e. Security, Customer
Service Desk, Cleaning and the Management Suite) may also be included in the programme.
ABOUT INTERNATIONAL BLUEPRINTS
International Blueprints helps its clients decide on the best type of research for their needs, then
uses the latest techniques to capture the most accurate information. The results are used to enable
more informed and profitable decisions, so aiding our clients to achieve their business goals. If
you are interested in learning how we can help you please send an email to
[email protected]
doc_138287248.pdf
Historically, shopping centre developers focused on two areas; capital cost and rental return.
There was no real interest in "the shopper" and the developer's mission was to maximise rent
almost in isolation of consumer demand.
THE ROLE OF MARKET RESEARCH IN
THE MODERN SHOPPING CENTRE
BACKGROUND
Historically, shopping centre developers focused on two areas; capital cost and rental return.
There was no real interest in “the shopper” and the developer’s mission was to maximise rent
almost in isolation of consumer demand. The focus of “marketing” was the successful completion
of lease so the industry tended to have a b2b emphasis. Meadowhall, which opened in 1990, was
the first centre to count shoppers and used light beam technology to do this. Developed by
International Blueprints, this innovation raised eyebrows in the industry at the time but was eagerly
embraced by the retailers who were able, for the first time, to put their sales results into an
objective context. The flow of data allowed tenants to be made aware of seasonal movements and
thus be more prepared for sales uplifts with more staff and stock. Promotional impact could be
scientifically measured for the first time and this feedback to retail partners led them to understand
that optimising the deployment of service charge funds was a shared responsibility, not a centre
management open cheque.
However in the example below Centre A with a higher gross footfall generates a 19% lower
turnover than Centre B as a result of a lower conversion rate and lower average party spend. In
other words footfall data are not reliable metrics in isolation.
Accordingly International Blueprints identified the following as some of the most important
measures for shopping centres:
DWELL TIME
An increase in dwell time can be brought about by an improvement in the retail mix or improved
catering facilities. It can also be influenced by improved facilities for children as this reduces stress
for both mother and child. Dwell time improvement correlates positively with average spend per
visit and the highest shopping dwell times in the large Regional Shopping Centres attract the
highest spends.
Although urban Centre dwell times are typically around 60 minutes, the impact of an improvement
in dwell time is nonetheless significant. We should bear in mind, however, that although increased
dwell pushes up spend, it tends to reduce visit frequency. The aim should be to increase dwell per
annum which is the product of frequency and dwell as this reflects that the Centre is enjoying a
higher share of time and hence of expenditure.
PARTY SIZE
Most shop visits are solo, so average party size is under 2, typically around 1.6. An improvement
in party size usually produces an increase in spend. Women dominate the shopper population and
their preferred choice of shopping companion is another female friend. They regard their male
partners as impatient kill-joys who inhibit their browsing, whilst children are not popular shopping
companions as their attention span does not coincide with their mothers. Hence when a woman
shops with children and/or partner it means that she will be shopping for the whole family and
thus average spend per trip tends to be higher.
The large Regional Centres have large parties and at weekends over 60% of parties have at least
one child present to boost spend. The challenge with party size growth is that it can reduce dwell
time unless there are decent facilities for men and children for example, a reasonable choice of
casual dining options.
VISIT FREQUENCY
The number of non-food trips made each year as an average is around 65 per annum. This does
not include trips to retail parks, supermarkets or designer outlets which in total are about 130
trips. For urban centres the key is to receive on every visit to the town centre. It should be noted
that marketing campaigns to target the secondary or tertiary catchments can produce an increase
in shopper flows and revenues, but are likely to result in an apparent drop in frequency as
frequency falls with the distance travelled. Again, as noted earlier, a fall in frequency is often a
harbinger of an increase in average spend and vice versa.
CONVERSION
Retail parks and regional malls enjoy conversions of 90% for reasons which are logical. More
routine trips to urban malls have a strong element of browsing or retail therapy. This can produce
conversion levels as low as 50% although the mean is around 60%. Conversion levels are
inhibited by myriad factors – stock availability, congested tills, indifferent service, etc. It is difficult
for centre management to intervene on these issues but we have found that using the mall’s
common areas to promote retailers is an effective mechanic. It is also effective to cluster retailers’
promotions into seasonal themes and to distribute these as leaflets at point of sale. International
Blueprints believe that attacking conversion is the most cost effective marketing tactic as you are
addressing real shoppers who are physically within your Centre. There is an additional benefit as
there is a positive correlation (0.67) between conversion and average spend. That is, on 67% of
occasions as the conversion rate rises, so too does average spend.
AVERAGE PARTY SPEND
This variable is largely driven by the size of the Centre, its location and the retail mix. It is impacted
however by all the other variables mentioned above. Higher dwell, larger party size and larger
conversion all tend to increase average party spend, whilst increased frequency tends to reduce it.
SHOPPER SATISFACTION
It is axiomatic that people spend more money when they are in a positive and contented state of
mind. We have applied regression analysis to the shopper satisfaction scores we have recorded in
over 200 shopper surveys and discovered that there is a positive correlation between customer
satisfaction and average spend.
QUANTITATIVE RESEARCH
Quantitative market research is typically used to measure a number of these ‘indicators’, however
we at International Blueprints believe that this form of market research becomes even more
powerful when used in combination with Qualitative
market research.
QUALITATIVE RESEARCH
The strength of qualitative market research to Shopping Centre owners is that it enables Centre
Management to take each of the aspects of the business such as conversion, frequency, dwell and
probe for the reasons for particular behaviour.
Beyond this, qualitative market research is particularly valuable for more abstract work concerning
communications. Given the high level of investment in branding, advertising, PR and promotions,
some measure of pre-testing is prudent and responsible and qualitative research is a particularly
powerful tool in this respect.
Within the consumer goods industries the once standard mega-survey “The Usage and Attitude
Study” has been replaced by simple behavioural surveys supported by focus groups which address
each element in the mix.
MYSTERY SHOPPING
The third approach, that of Mystery shopping, is also used extensively in Shopping Centres. A
mystery shopping programme is a unique way of collecting customer feedback as well as
measuring customer service operations. The mystery shoppers questionnaire is developed in
conjunction with current operational and brand standards to ensure that the measurement reflects
that particular Shopping Centre’s key performance indicators (KPIs). Our key product in the
shopping centre sector is Looking Glass™ however we are also able to develop bespoke solutions.
As well as paper-based presentation we also offer a web-based format which provides live data
and allows all levels within the organisation to access appropriate visit reports using a dynamic
reporting function. Business Blueprints (founded by Stephen Logue of International Blueprints) have
to date conducted around 10,000 mystery visits to retailers throughout the UK.
Trained mystery shoppers evaluate their experience in each location on the basis
of four detailed criteria:
• Presentation of the shop and retail staff
• Standards of Service provided by retail staff
• Levels of Expertise displayed by staff
• The standard of the close of service i.e. Farewell
Retailers are scored using a weighting system on the above four criteria (which accounts for 90%
of their potential score) plus a further 10% which can be achieved for ‘exceptional service’. The
exceptional service is given out in the form of “happy face” tokens which are typically redeemed at
the Information Desk for a small cash reward. Centre management teams (i.e. Security, Customer
Service Desk, Cleaning and the Management Suite) may also be included in the programme.
ABOUT INTERNATIONAL BLUEPRINTS
International Blueprints helps its clients decide on the best type of research for their needs, then
uses the latest techniques to capture the most accurate information. The results are used to enable
more informed and profitable decisions, so aiding our clients to achieve their business goals. If
you are interested in learning how we can help you please send an email to
[email protected]
doc_138287248.pdf