Big Data is offering a unique opportunity for companies to listen to their customers and offer them unique products and services that best suits their needs. All of us have experienced being targeted by online advertisers when as a results of search. But what about retailer? What options do they have to create more intimacy with their customers?
One option for retailers is Kiana Analytics which offers increased sales conversion by analyzing customer traffic before Point of Sale. With that in mind, I visited Nader Fathi, CEO of Kiana Analytics to for an interview.
Q: What is the big idea behind your business? What is the secret sauce?
A: Kiana empowers retailers with demographic and consumer behavioral data for real-time, location-based marketing to proactively influence customers and drive in-store sales. We convert Wi-Fi dark data, which has limited value to actionable information. We are different the way we connect to merchant in real-time and engage customers. Unlike other analytics solutions, we do not focus on just providing historical data – our philosophy is that visitor data is not an end in itself, but rather a means to help both merchants and their customers, get relevant and timely information on products they search, tailored deals and real time ( immediate) service. We don’t just restrict ourselves to one means of capturing data, we are consolidating multiple data sources, to provide a multidimensional view of visitors – giving merchants a far better view of who their customers are and using that to provide more relevant services and products.
Q) What was your motivation to start your company?
A:The advent of smartphones and the expansion of online retailers like Amazon.com are eroding the market for brick-and-mortar business. Another threat to offline retailers is showrooming, the practice of checking out a product in one store and buying it online at a better price. Furthermore, online retailers have an unfair advantage as their platform has been collecting consumer data for years. Using such data they can monitor shopping behavior, customer loyalty, and promotion impact.
Kiana Analytics helps retailers increase store performance and sales conversion by matching web-based vendor capabilities to analyze customer traffic before the Point of Sale. We extend current presence analytics for enterprise retail, using machine learning techniques and algorithms to provide predictive and behavioral analysis of in-store customer traffic. By mining Internet and retailer databases for social, trending, and consumer data, Kiana provides retailers with insights to customer behavior
We saw an opportunity to provide merchants with immediate ROI by giving them the tools not just to analyze visitor traffic but to influence and tailor their engagement with them. We want to provide merchants both the information and the means to reach out to their customers in an effective manner.
Q) What is the exact problem are you solving for the consumer?
A: Better access to product info and immersive experience. Same experience as on-line shopping at Amazon. Through a permissions based approach, the consumer can get a better experience when they are in store and be rewarded for their loyalty through improved offers, and product mix by the merchant.
Q) What is the problem retailers are trying to solve with Kiana?
A: 1- Real-time understanding of behavior of customer Foot Traffic analysis & predictive analysis. 2- take advantage of shoowrooming
Retailers are using this to understand their customer and identify the products that fit their customer’s needs, and we give them additional means to reach out to them in a tailored fashion to improve customer loyalty, visit frequency and shopping cart size.
Q) What makes this an Aspirin vs a Vitamin for the retailer? A must have vs a nice-to-have?
A: Online retailers know everything about their customers. Study shows that less than 6% who visit a store buy anything. Brick and mortar doesn’t know how to reach out to visitors Trying to level the playing field compared to online competitors by providing immediate offers and tailoring products, creating a real time and immersive experience for the consumer by generating tailored information not just to their mobile device but also through the digital signage and kiosk infrastructure a merchant might have deployed.
See the blog:wirelessnerd.blogspot.com/2014/08/a-new-entry-in-retail-analytics-brings.html
Q) How do you prove that your company’s offering increases the spend per customer at retail locations?
A: By measuring visitors and engagement we can then compare to Point-of-Sales (POS) data and see increases in traffic and sales
Q) How many people in the company now?
A: Less than 50
Q) Who is your biggest customer?
A global food retailer with main stores in Australia, New Zealand and Canada and soon to open shop in USA, in terms of product sales dollars, a multinational auto company (for its showrooms).
Q) How many customers do you have today?
A: Kina Analytics is engaged with over 50 worldwide customers
Q) What is the exit? What are the long term plans?
A: Location based marketing is a new and untapped opportunity. In-store shopping is the dominant shopping channel today $2.9T in 2013, representing 92% of total retail sales. We’ll continue growing this market by servicing existing customers and depolying new technology.
Well, it appears that if Nader Fathi and Kiana Analytics have their way, your next visit to a retail store could be less frustrating.