Mark Heckman does a terrific job of summarizing why stores need in-store shopper data and behavior tracking: merchandising, category management, messaging, offers, conversion and the list goes on.

But brick-and-mortar stores have a huge mountain to climb in terms of being able to develop in-store shopper data comparable to that available online. While in-store tracking has come down in costs, much it of it is anonymous in the interest of protecting consumer privacy. And if consumers opt in to be tracked via their smartphone, the logistics of being able to dynamically respond in a physical space in-store is much more difficult and expensive than it is online. While better in-store data will happen, the most important thing that stores can do right now is to do something online can’t — create compelling customer assistance through staff.

Absolutely. Stores are fast becoming service providers rather than primary sellers. How can they possibly survive when they are not paid a cent for what they actually do best?

Store are “selling” services to customers who often prefer to buy the product elsewhere. When an online retailer loses a visitor, at least it knows about it. It is crucial that physical stores acquire similar or better capabilities of collecting and processing customer-behavior and conversion data.

Once they do, they can work towards charging brands and online shops a fair commission for servicing showrooming customers.

While stores can do a much better job of using data to drive their planogramming efforts, I don’t think they’ll ever leverage data to the degree that e-commerce sites do. The reason is that in a physical store, retailers must set the store to cater to the “average” customer. In a virtual store, every visitor can have a different experience.

Using data to tailor that experience increases relevance, engagement and sales in a way that isn’t possible in the retail store environment.

I’m looking forward to seeing more results of lower-cost technologies to capture and analyze in-store shopper data. Auto-analyzing existing security video footage is a very active category. I also like the emerging category of motion-sensing and analysis. With motion sensors like Microsoft’s Kinect technology mounted 16 feet above a shelf, the technology can analyze which SKUs are taken off the shelf and then put back or put in the cart. One of my favorite stories is that a cereal brand used this technology to measure lift in putting the healthier SKUs at eye level and moving the sugary items lower. The results were that when a parent was shopping alone, more of the healthy items went into the cart, but when the technology measured a child accompanying an adult, more of the sugary stuff at their eye level went into the cart.

These new techniques in shopper data collection and analysis are promising, but retailers should first focus on fully understanding their purchase data from their POS system. Using a shopper identification (or loyalty) program, retailers can track purchases by shopper and identify key segments and trends among their shoppers. They can target specific shoppers with specific promotions based on the insights.

Analyzing data around shopper traffic and conversion can be interesting, but retailers should first ensure that they are getting the full benefit from analyzing their purchase data and taking action based on these results.

Although data could be useful to stores, I’m not sure how accurate it would be and how possible it is. Stores have a huge advantage over online sales in creating a customer experience that makes them stand out. Perhaps more energy should be put into creating an exceptional experience, analyzing the effects of that and improving it from the data collected.

If the focal question asked “should” brick-and-mortar stores leverage in-store shopper data, then the answer is obviously yes. But the question really asks whether they’re ready to do so, and unfortunately for most retailers the answer is a resounding no. They can’t properly leverage their transaction log data, so forget about in-store shopper data. Retailers need to walk before they run: first figure out who’s buying what before you worry about who’s doing what. Given the disappointingly slow progress on the former, I’m not holding my breath for the latter. But I hope I can be proven wrong in the next few years.

While I agree that data is important, I believe retailers’ in-store efforts right now should focus around the experience. Often a customer shopping online is looking for something in particular while the in-store shopper may be browsing around for the “find.” Retailers should cater to that.

They should also provide assistance to facilitate the find. Those serendipitous moments can’t be replicated online.

For my 2 cents.

Sure, physical stores need to become expert at gathering and leveraging shopper data. But Chris Petersen makes a great point about shopper anonymity in brick-and-mortar retail. To be more competitive with digital environments, shops need to know who is browsing and connect that with who is buying.

To accomplish this, facial recognition technology or an RFID chip-type technology should be employed. The mere suggestion of this is enough to scare many pundits (and shoppers). However, let’s not forget that it was not that long ago that the very presence of video cameras was shocking. Now, those are de rigueur.

The technology to monitor shopper activity has been available for several years, unfortunately no retailer has taken advantage of it. I would be surprised if Kroger is not currently working on this.

Research data shows that shoppers want two things desperately while in stores. One is helpful assistance and the other is compelling experiences. Delivering on these doesn’t take mountains of data, but it does take an understanding of the gaps shoppers feel and the specific categories where shoppers need help.

If brick-and-mortar retailers are not focusing in this area, they only have themselves to blame for the future. Shoppers will seek out what they want and leave slow-moving retailers in the dust. Look at Macy’s as they close stores and try to deliver better via digital. If shoppers decide Amazon is better online, they’re in trouble. If shoppers decide Nordstrom delivers better in real-life situations, they’re in trouble.

Hmmmmm.

The title of this piece says it all, “Are retailers ready?” Is effective technology in the marketplace today to attack this data? Yes, and there is some really cool stuff that can take most of the traditional “gut feel” out of merchandising and marketing decisions. However, the vast majority of physical stores are not yet taking advantage of these tools for one reason or another. Most of those reasons are not deal breakers, though. I know of very small retailers that are reaping ROI for some great shopper insights investments. These investments are around store-level order optimization, category management and real-time personalization.

The key word is eventually. Remember, Amazon already has and uses the data. Stores have (or could have) access to vast and invaluable shopper data. The challenge is to determine what data should they be sifting through and which data is actually going to help them sell more to the digitally empowered shopper. Their first challenge is to create seamless and delightful experiences that resonate with online shoppers. Why go to a brick & mortar store — for the experience. Unless the holistic shopping experience is enjoyable, shoppers will shop from their kitchen table — not because it’s more fun, but because it’s easier and has far fewer hassles.

More time should be spent concentrating on “little data” — data that actually can translate into real commercial results. Creating seamless tracking from manufacturing through the sale in the aisle using RFID technology is “little data.” It’s very focused data, but with powerful supply chain and consignment sales process ramifications. These technologies will change the entire brick & mortar landscape.

As brick & mortar retailers understand more about the value that their e-commerce sites provide in terms of consumer data, they will look to mirror the data collected. Additionally, as technology advances, they will find it easier and more efficient to obtain the details that will lead to better understanding.

Better in-store insights will lead to a change in category management practices across the board. It’s an evolution that brands need to understand and address.

The simple answer is no. In-store cannot advance as fast as online unless the infrastructure is in place to do so. However, in order to do this properly right now requires a large amount of expense. In order to pull this off efficiently, the systems between consumers and retailers need to be more frictionless. In this case, customers would simply be buying from the store, using it as a giant warehouse, with the store navigating customers as if they were pickers in a warehouse, to their desired product. All the while the store recognized previous purchase history and browser cookies gathered about this customer to show relevant and timely in-store offers as they are navigating to their desired purchase. This all begins, however, along the online journey of the customer when they are in the pre-purchase decision-making mode. In this case, data is only used by algorithms to sort and deliver more relevant/timely offers for customers so they buy more at the point of purchase, as well as in the future.

Combining store traffic, path and dwell times with loyalty transaction data, as Mark suggests, also creates an accurate and quick reading test marketing laboratory. Make a marketing, merchandising or operational change in selected test stores, then compare results in those metrics with (ideally matched) control stores to see quantified results of the test’s efficacy. Useful for retailers and their vendors.