CASE STUDY

Stay Longer, Spend More:
Secret of Dwell Time in Retail

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 dwell times and sales

Retail dwell time and sales have a strong positive correlation.

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.

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

How to Measure Customer Dwell Time in Retail Environments

Measuring consumer dwell time requires the use of advanced technology, with sensor-based people counting systems leading the way.

These systems use a sensor to track the movement of customers as shoppers enter, exit, and move within a retail environment.

Accurate People Counter:
The sensors accurately measure the flow of people and the length of time shoppers spend in the mall.
For example, in a shopping mall, sensors can be installed at the entrance and other key locations throughout the facility to track movement patterns and the amount of time people spend in different areas for real-time data collection and analysis.

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:

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.

In addition, implement technologies such as digital kiosks, mobile apps and AR/XR to provide customers with additional information and a more personalized shopping experience.

Offer Seating Areas

By providing seating areas where customers can take a break, you encourage them to spend more time in your store.

Creating an environment that is friendly to families with children and the elderly will make your store popular with a wide range of customers.
This is especially effective in large stores and malls.

However, it is important to carefully evaluate the effectiveness of each initiative.

For example, installing free smartphone charging stations increased dwell time, but attracted customers who only came to charge, which did not contribute to our overall goals.
Therefore, it is critical to thoroughly evaluate the impact of each initiative to ensure it is aligned with your goals.

Create a Family-Friendly Environment

Providing a family-friendly environment with amenities such as baby changing stations and private nursing rooms enhances the overall shopping experience.

This not only supports parents, but also demonstrates a commitment to inclusivity and customer satisfaction.
Create a welcoming atmosphere that attracts and retains a diverse customer base.

Store Layout, Design and Ambiance

Store layout, design and ambience
A well-designed store layout that's easy to navigate can significantly increase dwell time.
Shoppers are more likely to explore and spend more time in a store that feels organized and spacious.
Effective layouts provide clear signage and accessible pathways, making the shopping experience smoother and more enjoyable.

Elements such as lighting, music and temperature also play an important role in creating a pleasant shopping environment.
A well-maintained and clean store is more likely to keep customers longer.

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.
Ready to transform your mall or store and maximize its potential?
Reach out now and start your journey towards retail success! 

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