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Retail Analytics
Technology Behind the Solution

Aerohive and Euclid have integrated their technologies to arm traditional brick-and-mortar retailers with helpful retail analytics. Euclid’s powerful real-world insights combined with Aerohive’s controller-less, intelligent Wi-Fi architecture provide a comprehensive analytics solution for physical retailers looking to optimize customer experience.

Every Aerohive customer, cloud-hosted or on-premise, will gain access to Euclid’s embedded, free retail analytics solution via HiveManager. Customers can define unlimited retail stores, browse visitor traffic, engagement, and loyalty metrics, compare stores, share insights, and understand the way shoppers interact with their stores, even across thousands of locations. Customers can choose to upgrade to the premium version of Euclid Analytics to gain access to advanced analysis tools and enhanced data export at a low per-store monthly subscription price.

Configure Retail Stores

Step: Configure Retail Stores

HiveManager on-premise customers: Upgrade to the latest version of HiveManager (6.1r1 or higher), then go to Home > HiveManager Services and check the "Enable Presence Analytics" box. HiveManager Online customers: Contact your Aerohive representative to enable this setting.

Go to Reports > Presence Analytics and accept the Euclid EULA. Click the Configure and "New" button button to start defining stores. Enter the name of each store and its physical address, then select the Wi-Fi devices associated with that store.

Enable Presence Functionality

Step 2: Enable Presence Functionality

Next, under Configuration > Radio Profiles, check the "Enable Presence Server" box for your existing radios and push the policy to your device.

Data collection will begin immediately, but it will take 24 hours before measurements start appearing in your dashboard.

View Analytics Dashboard

Step 3: View Analytics Dashboard

After 24 hours, visit Reports > Presence Analytics again to start viewing opportunity, engagement, and loyalty metrics for each of your stores, including Visit Duration, Visit Frequency, Window Conversion, Bounce Rate, and Engagement Rate. You can view recent trends, compare stores, and drill down to view more detailed reports.

Gaining Consumer Behavioral Insights – Analyzing the Path to Purchase

Gaining Consumer Behavioral Insights – Analyzing the Path to Purchase

Online retailers have long been able to understand consumer behavior and optimize customer acquisition, loyalty, and engagement by measuring where a user has been, what offers they click on most frequently, what products and promotions they find most appealing, and more. But how can an offline retailer gain similar insights and a similar ability to improve their operational efficiency?

To level the playing field, brick-and-mortar retailers are increasingly interested in better understanding shopper behavior and finding ways to engage with customers in new and compelling ways. For example, do changes in staffing and store layout have a significant impact on average shopping time? Retailers are also looking to perform comparisons across stores in order to understand what makes one store more successful than others. For example, a clothing retailer might conduct a test of two different window display designs across two sets of several stores to understand which entices a higher percentage of people walking by to enter the store – much like the A/B tests that online retailers have used for years to optimize the performance of their banner ads and landing pages. What was previously a gut-feel decision can be made empirical and definitive.

Ironically, the explosion of Wi-Fi enabled mobile devices such as smartphones and tablets – key catalysts for the growth of e-commerce – is also helping leveling the playing field between online and offline retail. The number of people carrying a mobile device with active Wi-Fi (but not necessarily connected to the network) is now large enough to represent a statistically significant sample of the overall population. In fact, in many major cities, this group makes up the majority of the population. Because of this trend, it’s now possible to accurately and anonymously measure in-store shopping behavior and trends by detecting the presence of WiFi devices.

In practical terms, dependent on location of the store and the demographics of its customers, we typically find that 40%-70% of all visitors are carrying a phone with Wi-Fi that can be measured. These figures are consistent with broader third-party research – in June 2012, Nielsen reported that 54.9% of US mobile subscribers already own a smartphone. Since smartphones now represent about 75% of mobile phone purchases, the percentage of shoppers that can be measured with this technique will continue to grow significantly each month. The Aerohive and Euclid retail analytics solution is designed to leverage these trends to level the playing field between online and offline retailers.

How does that happen just by using Wi-Fi?

As shown in Figure 1 every Wi-Fi radio sends out periodic probe signals searching for Wi-Fi access points (APs) in the vicinity. The Aerohive AP detects that probe, anonymizes the unique MAC address of the device via one-way hashing algorithm, and then encrypts the data for transport to the Euclid cloud platform, where it is processed. From that point, Euclid’s advanced heuristics consider several different factors – including signal strength and ping frequency – to determine the phone’s approximate location including whether it is inside or outside the retail store, and then employs patent-pending algorithms to create the analytics information used by retailers.

The Aerohive HiveManager platform connects to the Euclid cloud through a secure HTTPS connection to retrieve and present the analytics data in a simple dashboard in our HiveManager network management application.

Aerohive Retail Analytics Solution Data Flow
Aerohive Retail Analytics Solution Data Flow

What does the solution provide?

Every Aerohive customer, cloud-hosted or on-premise, will gain access to Euclid’s embedded, free retail analytics solution via HiveManager. Customers can define unlimited retail stores, browse visitor traffic, engagement, and loyalty metrics, compare stores, share insights, and understand the way shoppers interact with their stores, even across thousands of locations. Customers can choose to upgrade to the premium version of Euclid Analytics to gain access to advanced analysis tools and enhanced data export at a low per-store monthly subscription price.

Some of the metrics available in the solution are:

Acquisition

Loyalty

All reporting can be accessed via HiveManager. Customers running HiveManager on-premise or in a private cloud can also enable retail analytics by establishing an outbound secure (HTTPS) connection with the Euclid cloud.

What kinds of questions can be answered by these insights?

1.1. Test different displays to improve your Window Conversion Rate
Putting the right display in your front window can have a huge effect on enticing shoppers. But can you quantify the difference between two different displays? Can you compare their ability to draw customers into the store? With the Aerohive and Euclid solution installed, the answer is yes.

1.2. Does more time in the store increase sales?
Do you know if longer shop time translates into more sales? The answer varies widely by store type. Restaurants want to turn the table in the shortest time. Warehouse stores might see a near-linear increase in sales with visitor dwell time. Whichever your case, with Aerohive and Euclid, you can finally find out.

1.3. How can I increase customer loyalty?
If you’re a coffee house, you might want customers to visit twice a day instead of just once. If you’re a furniture store, maybe you want to increase visit frequency from once a year to every nine months. The Aerohive and Euclid solution enables you to measure how frequently customers visit your stores, so you can take steps to improve loyalty and measure your progress along the way.

1.4. Are your promotions effective in creating loyal customers?
Many businesses these days are using daily deal sites to stimulate demand and create new loyal customers. But do they work? Don’t take it as an article of faith. With the Aerohive and Euclid Retail Analytics solution, you can see whether these deals had a lasting impact on the frequency and duration of customer visits.

What are the components of the solution?

Aerohive wireless infrastructure and an Internet connection. That's it.

By leveraging Aerohive’s HiveManager platform and tying it to Euclid’s cloud solution with a secure, private connection, Aerohive has created the first retail analytics system that doesn’t require any special hardware or software beyond the standard in-store Wi-Fi installation. No extra sensors, no special management software. Thanks to our robust management platform and the explosion of Wi-Fi devices, these business-changing insights can be gained with a standard Wi-Fi installation. Whether you have a single store that requires just one access point or thousands of stores that require many access points each, installation is as simple as enabling the Euclid Analytics technology through your HiveManager interface.

Aerohive has embedded the technology into HiveOS, our industry leading network operating system, allowing all devices to function as Euclid sensors – from the AP121 all the way through our top-of-the-line AP330 dual-radio 3x3 802.11n access point. This unique level of flexibility allows everybody - from small to large retailers - to benefit from the solution. As shown in Figure 2, HiveManager comes with a free Euclid Analytics dashboard to provide a standard tier of metrics and reports. In-depth analytics can be obtained by upgrading to the advanced version of Euclid Analytics at anytime. The advanced version of Euclid’s dashboard provides longer history, finer-grained store and segment comparisons for A/B testing, and more advanced metrics like repeat-visitor behavior and various loyalty metrics.

Integrated Dashboard in HiveManager
Integrated Dashboard in HiveManager

Standard vs. Advanced Euclid Analytics Details

The standard version provides retail performance metrics to any Aerohive customer with a HiveManager account and is available for free. The advanced version provides more in-depth analytics and tools offered by Euclid. The advanced version requires a monthly subscription license per store and can be purchased directly from Euclid.

Below are more details on what the standard tier offers and what the advanced tier offers.

Standard – free and included in HiveManager (cloud and on-premise) and it includes:

Advanced: The paid version includes all the features of the standard version, plus:

Aerohive & Euclid Joint Solution Key Differentiators

Aerohive has a strong partnership with Euclid and offers unique retail analytics capabilities far beyond other WLAN vendors. Key differentiators include:

Conclusion

Retailers across all verticals are accelerating the deployment Wi-Fi networks to enable enhanced in-store experiences and improve customer engagement. This investment represents a golden opportunity to bring the business to parity with online rivals.

Offline retailers are in direct competition with online, and while both sides have advantages, it’s clear the online world has been doing something right. By moving to data-driven decisionmaking, retailers are able to improve the business in ways not previously possible.

If you already have Aerohive Wi-Fi, you’re nearly there. Just enable Euclid Analytics on all your APs, and start giving your online rivals a run for their money.