Indivd collaborates with retail researchers to strengthen the retail ecosystem
Hampus Poppius, retail researcher and founder of Propter Hoc Data
Indivd has initiated a close collaboration with researcher Hampus Poppius in order to supplement Indivd’s unique and anonymized insights with advanced data analysis, empirical tests in-store environments, and to further strengthen the retail ecosystem.
Hampus Poppius, a Ph.D. Candidate Lund University and founder of Propter Hoc Data, has for a long time conducted quantitative empirical research in retail environments, including a focus on competition and consumer behavior. Practical tests in reality have been an important part of the research.
He emphasizes in particular the importance of using the scientific empirical method to be able to draw reliable causal conclusions.
– There is an imminent risk that wrong conclusions are drawn if you want to change something in the store environment and, based on this, be able to measure the impact on the sales if you do not compare the change in sales with a corresponding randomly selected control group, says Hampus Poppius.
Great potential for retail
These methods are common practice in medical research and in e-commerce, but it is not as easy to use control groups in physical store environments.
– I have unique and great experience in designing such AB tests even for smaller physical environments. It may take a bit longer, and it is extremely important to carefully follow the established schedule, but we know that these experiments can be carried out successfully and, thanks to these methods, reach reliable conclusions. This is where I see great potential for retailers.
A collaboration that is increasing customer value
Hampus Poppius has now started a close collaboration with Indivd with the aim of conducting field studies for joint partners and retailers with the help of Indivd’s unique, anonymized insights.
– Together, we contribute to increasing customer value. With more data, we can better understand what is happening in the stores. Mine and Indivd’s vision is to be able to offer deeper value to Individ’s insights with the help of tests and advanced data analysis, he says and continues:
– A common mistake that many companies make is that they think they are digitally driven and digitally mature as long as they gather data. But it is easy to be lulled into a false sense of security and make decisions based on incorrect conclusions without access to the right skills in data analysis and the right methods.
One key reason why companies like Google and Amazon have become successful is that they first test every conceivable change in different experiments.
– It is easy for them because they have all the tools and especially because the testing takes place online. What I and Indivd are offering is to adapt the tests based on the conditions of the physical stores. We give them the opportunity to use scientific experiments and to always compare two different alternatives with each other in order to understand which alternative is the best one.
A cost-efficient process
A major challenge is to make retail understand the value of conducting proper tests.
– It does not have to be more costly or complicated if the stores anyway are going to implement changes that are already planned. If 20 stores, for example, have decided to change display systems, the difference here is that we instead carry out this change step by step and at predetermined times. This makes it possible to scientifically test and compare the outcome of different interior design choices in different stores, he says.
Experiments are crucial
It is, according to Hampus Poppius, important that the stores take advantage of their strengths and benefits in the form of a more comprehensive personal approach due to the growing competition from e-commerce.
– This is also a challenge because you do not always know what works best. The stores need to test themselves in a structured and experimental way so that they can actually be sure of what the best practice is, he concludes.