VideoMining’s Convenience Store Study Uncovers Opportunities to Increase In-Store Sales
Research by VideoMining Corporation, the leading provider of in-store intelligence for retailers and consumer packaged goods (CPG) manufacturers, has revealed specific shopping patterns and opportunities to increase sales in convenience stores. The findings stem from a landmark Syndicated National Program called Convenience Shopper Insights (CSI-2) that began in August 2010.
The study examined shopper behavior incorporated with responsiveness to different marketing and merchandising strategies. Among the myriad of surprising patterns to emerge were:
- The importance of beverages in the convenience channel was substantiated by the fact that over a third of visitors shopped for some kind of a beverage immediately after entering the store.
- Food Service offerings played a vital role in improvement of overall store sales. One of four store visitors (24%) stopped to shop the Food Service category.
- Only a few shoppers (less than 10%) were influenced by promotions, while proximity remained the primary decision factor. Interestingly, C-stores generated more than three dollars for every minute consumers shopped inside the store.
- Shopping trips were fairly quick – just over 2 minutes, including 40 seconds at checkout.
The CSI-2 program deployed VideoMining’s breakthrough in-store measurement and analytics platform in a carefully selected sample of stores in 11 U.S. markets providing a more longitudinal view of C-store shopping behavior. The program was supported by over a dozen key retailers and manufacturers including: 7-Eleven, Circle K, BP AM/PM, Sheetz, Cumberland Farm, PepsiCo, Hershey, MillerCoors, Kraft, Wrigley and General Mills.
Krishna Botla, Director of Convenience Shopper Insights for VideoMining gave details, “The study confirmed the need to quantitatively study shopping behavior to truly understand the ‘real world’ opportunities in the convenience channel. Participants in the program are now formulating effective marketing and merchandising strategies that match shopping patterns and needs uncovered from our landmark study.”
“We are delighted to put our new Shopper Metrics framework to work for the C-store channel and we are planning to extend this scalable approach across other channels including grocery,” added Tom Sullivan, who recently joined VideoMining as president after an extensive career with Information Resources, Inc., the Nielsen Company and several consumer packaged goods companies.
VideoMining plans to extend the CSI program into a recurring program for tracking key industry metrics and for testing new strategies.
Meanwhile, VideoMining has just announced Grocery Shopper Insights (GSI-1), a syndicated national program to study shopper behavior in the grocery channel. The program will deploy VideoMining’s breakthrough in-store measurement and analytics technology in a carefully selected sample of stores in 15 U.S. markets analyzing over 25 million grocery trips this year alone. The large behavioral data set, integrated with transaction data and attitudinal surveys, will provide unprecedented visibility into the path-to-purchase of grocery shoppers and the factors that impact purchasing decisions.
“The overall objective of GSI-1 is to help participants gain direct feedback on precisely where to focus their efforts for improving shopper engagement and conversion for each grocery trip type and for each shopper segment,” explained Dr. Rajeev Sharma, Founder and CEO of VideoMining.
The GSI-1 program components are aimed at optimizing different elements of the grocery channel including:
- Center of Store Merchandising Optimization,
- Secondary Display Optimization, and
- Front-End Merchandising Optimization.
The GSI-1 program will benefit from VideoMining’s success with syndicated programs in the convenience store channel, in addition to retailer-specific, in-store learning and testing programs with several major chains.
About VideoMining Corporation
VideoMining Corporation is the leading provider of in-store intelligence for shopper marketing. The company’s actionable insights help retailers and consumer product manufacturers optimize their marketing and merchandising strategies. These insights are based on the company’s breakthrough in-store measurement technology that automatically converts video into precise statistical data on the shopping process. For more information: www.VideoMining.com
Media Contact: Primary Communications, 440-582-1889