Shopalong In-Store Case: Revenue Impact of Non-Purchase  

Non-purchaser case study header pick

Objective

Global Apparel Retailer needed to quantify the lost revenue impact of non-purchase issues in order to prioritize remedy investments. 

Challenges

Capturing non-purchaser data: Retailer’s existing customer experience program was exclusively focused on capturing data from purchasers via receipt URLs and post-purchase email invitations, or capturing qualitative information about non-purchaser behavior from face-to-face store intercepts. Further, retailer had no way to quantitatively assess barriers to store visitation.

Determining how to prioritize what should be fixed about the non-purchaser experience:  Retailer did not have a reliable and scalable method to determine which aspects of the non-purchaser experience should be triaged nor a way to determine if any interventions were having their desired impact on improving the non-purchaser experience.

Solution

To successfully address challenges related to capturing the shopping behavior of non-purchasers, and quantify how much of lost revenue can be tied back to each reason for not buying, Purchased tracked each shopper’s apparel shopping sessions, in-store and online, from December 1st through December 25th. In-store visits were validated by GPS and purchases were confirmed by reviewing submitted receipts. Non-purchasers were defined as shoppers who did not purchase at the retailer's store nor at the retailer’s online store.

Two key findings were that sizes and colors were not available in store, and that long lines drove away a high percentage of customers. Purchased was also able to determine the percentage of customers who did not even enter the retailer’s stores due to observing the long lines and crowds.

Purchased calculated the revenue impact based on the following metrics:

  • percentage of shoppers who did not purchase due to a specific reason
  • store traffic
  • store conversion rate
  • store average basket size
  • amount customer ended up spending at competitor store

Impact

With the insights from these data, the store operations team was able to

  • Prioritize opportunities for improving the non-purchaser experience as well as determine how much they could invest in solutions to address each non-purchase reason and still maintain a positive ROI.
  • Make significant investments in staffing and operational efficiencies at checkout in order to reduce line wait times, and investments in inventory management to address in-store demand for extended size options.
  • Initiate an evergreen non-purchaser study to track non-purchaser behavior throughout the year and to monitor and assess interventions made based on the data.

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