Secret of Dwell Time in Retail | Giken Trastem Co., Ltd.

Understanding the Meaning of Dwell Time in Retail Stores

Understanding Dwell Time in Retail Store

Dwell time means the time a customer spends in a store or mall from entry to exit.

It is a critical metric because it is closely linked to customer engagement and purchasing behavior.

Generally, the longer customers stay in a store or mall, the more likely they are to make purchases and spend more money.

The Importance of Dwell Time for Retail Stores

Retailers have long understood the connection between longer dwell times and increased sales

However, leveraging dwell time as a key performance indicator (KPI) using data-driven strategies is not yet widespread.
For developers of large retail spaces like shopping malls, understanding and utilizing dwell time data can significantly enhance overall performance and profitability.

Matrix of the relationship between dwell time and purchasing behavior

Recent research has shown that the length of time customers spend in a store has a more significant impact on purchasing decisions than the initial desire to buy something.

This insight emphasizes the importance of creating an environment that encourages customers to linger and explore, increasing the likelihood of making purchases.

The matrix between dwell time and purchasing behavior can be categorized as shown in the figure on the right:

Stay Longer, Spend More

The matrix shows that even low intent customers who spend more time in the store tend to buy more than high intent customers who spend short time in the store, indicating the significant impact of increasing dwell time on overall sales and customer engagement.

Factors Affecting Dwell Time

Several factors influence how long customers stay in a store or mall:

Store Layout and Design

A well-designed store layout that is easy to navigate can significantly increase dwell time.
Customers are more likely to explore and stay longer in a store that feels organized and spacious.
Effective layouts ensure clear signage and accessible pathways, making the shopping experience smoother and more enjoyable.

Customer Service

Friendly and helpful staff can enhance the shopping experience, encouraging customers to stay longer and make more purchases.
Excellent customer service can also reduce frustration and improve overall satisfaction.

Ambiance

Elements such as lighting, music, and temperature play a crucial role in creating a pleasant shopping environment.
A well-maintained and clean store is more likely to retain customers for longer periods.
Background music, for instance, can influence the mood and pace of shoppers, potentially increasing their dwell time.

Product Demo

Attractive and strategically placed product demo can capture customers’ attention and encourage them to explore more items, thereby increasing dwell time.
High-quality displays and well-organized merchandise make it easier for customers to find what they need, enhancing their shopping experience.

Strategies to Increase Dwell Time in Retail Spaces

To effectively increase dwell time, mall developers and large retail space managers can implement the following strategies:

Optimize Store Layout

Design the store layout to guide customers through various sections smoothly. Use clear signage to help customers find what they need easily, and create spacious aisles to prevent congestion.

Enhance Product Displays

Use eye-catching displays to highlight new arrivals, promotions, and best-sellers. Ensure that displays are changed regularly to keep the shopping experience fresh and engaging.

Improve Customer Service

Train staff to be attentive, knowledgeable, and approachable. Employees should be able to provide assistance promptly and make customers feel valued and welcome.

Create a Comfortable Ambiance

Pay attention to lighting, music, and temperature to create a comfortable and inviting atmosphere. Adjust these elements based on customer feedback and seasonal changes.

Provide In-Store Entertainment

Offering entertainment options such as interactive displays, live demonstrations, or complimentary refreshments can encourage customers to stay longer and enjoy their shopping experience.

Use In-store Technology

Implement technologies like digital kiosks, mobile apps, and AR/XR to provide customers with additional information and a more personalized shopping experience.

Offer Seating Areas

Providing seating areas where customers can rest can encourage them to stay longer in the store. This is particularly useful in large stores or shopping centers.

Host In-Store Events

Organize workshops, classes, or special events that align with your product offerings to attract and retain customers for longer periods.

Appeal to the Senses

Engage customers’ senses with thoughtful elements like a signature in-store scent, appropriate music, and effective lighting to create a memorable shopping experience.

Measuring Dwell Time in shopping mall

To measure and analyze dwell time effectively, retailers can use various tools and technologies:

Foot Traffic Counters

Devices placed at entry and exit points to track the number of visitors and the duration of their stay.

Surveillance Cameras

Advanced video analytics can help track customer movements and measure the time spent in different areas of the store.

Wi-Fi and Bluetooth Tracking

By tracking the Wi-Fi or Bluetooth signals of customers’ mobile devices, retailers can gather data on dwell times and movement patterns.

Customer Surveys

Direct feedback from customers can provide valuable insights into their shopping experience and suggestions for improvements.

To the best of our knowledge, to measure the dwell time of customers in shopping mall or stores, a high accuracy people counting solution is most reliable and can provide accurate dwell time of customers.

The Bottom Line

Increasing customer dwell time is a powerful strategy for enhancing retail performance, particularly for large retail spaces like shopping malls.

By focusing on creating a welcoming and engaging shopping environment, optimizing store layouts, and providing excellent customer service, retailers can encourage customers to stay longer and make more purchases.
Implementing the strategies discussed in this article can help mall developers and large retail space managers maximize the impact of dwell time on their overall success.