STORES Magazine - September 2017 - 55

in Canada. It brings that data together
with demographic information, then
uses a relational database to assign
reported crimes from each agency
to the city where that agency has
law enforcement responsibility. That
provides an accurate representation
of the complete number and types of
crimes that are known to occur in any
city or town.
SecurityGauge then uses proprietary
computer models to predict crime risk.
Given the address of an individual
location, Couture says Location Inc. can
generate risk scores and map
eight different types of crime risk
for that location, including burglary,
larceny, vehicle theft, vandalism and
aggravated assault.
By recalculating those risks every
30 feet, a retailer can see how they
change around the geography of an
address. Location Inc. also gives retailers
a heat map, which covers either three
miles or a population of 100,000, and
shows retailers where the crime risks are
around their stores.
A store located at 1 Main St., Couture
notes, will have a different risk from a
store located at 200 Main St. Calculating
the risk in small spatial increments
allows retailers to spot significant crime
risk variations and use that level of detail
to make their crime risk assessments
more accurate.
Retailers can assign a total crime risk
score for individual stores as well as crime
risk scores for the various types of crime.
They can also see crime risk trends that
cover the past five years and show how
the risks around the selected addresses
have been changing.
UNDERSTANDING RISKS
Traditionally, retailers using Location
Inc.'s data and trying to assess risk per
individual store location were using that
data in a vacuum, manually correlating
it with internal data. Ironside runs
all that data through its centralized
IronStores loss prevention analytics and
data management platform, creating
models that help a retailer's LP staff
much more quickly and accurately predict
the likelihood of crimes occurring in or
STORES.ORG

around individual store locations.
Ironside also uses the data to predict
shortages, cash loss, safety risk and
customer service risk scores. The program
also reviews the environmental crime
risks for individual stores, helping a
retailer's LP staff understand how those
are contributing to shortages.
"We help a retailer understand why
crime risks are happening within their
individual stores," Bonnette says. "We
help them understand the drivers behind
their risks and their relative importance
by each specific store location."
The user interface, designed for a
chain's corporate, regional, district and
select store-level LP staff in the form of
prescriptive dashboards, is deployed on
top of the proprietary IronStores LP risk
analytics model.
At the corporate level, the application
is designed to help a retailer make
strategic decisions about new store
locations, among other things; at the
regional and district level, it is designed to
help managers make informed decisions
about the stores they oversee. At store
level, it is intended to help LP and
store-level managers make day-to-day
operating decisions.
Store-level LP personnel can also use the
guidance as a coaching and training tool
"to help store level employees understand
the key levers that they can use to affect
how well their stores perform," Bonnette
says. "For example, how to increase
customer satisfaction to build loyalty
and increase sales while simultaneously
reducing shrink."
INDIVIDUAL KPIS
In analyzing the data, Ironside and
Location Inc. are helping their retail
customer discover what Bonnette
describes as a "correlation between
shrink and customer satisfaction scores."
"The higher the customer satisfaction
scores for stores in various locations,
the lower the shrink," he says. "It
reflects how well the employees cover
a store and how aware they are of their
customers through observation, where
they may be within a store, what they
might be doing and whether they seem
to need assistance."

With this information, store-level LP
personnel can initiate training programs
around enhancing customer service as
well as the satisfaction levels of their
store's staffs. At press time, that part of
the program was about to go live at all of
the retailer's North American stores with
approximately 100 executive, managerial
and in-store LP workers.
The training will include helping
employees see how their individual stores
rate across multiple key performance
indicators such as shortage rates, cash
loss, overall shrink and customer
satisfaction - factors crucial to an
organization's success.
To perfect the predictive model the
retailer is rolling out, Ironside fed the
shortages and performance data for
2014 and 2015 into the system, helping
the software improve its learning curve
across a wide variety of scenarios. The
company compared what the model
predicted for 2016 across many scenarios
to the actual results in the stores in 2014
and 2015 to access the accuracy of the
model's predictions.
It is now using 2015 and 2016's real
performance data to assess how well the
model's predictions and recommendations
for 2017 are working, looking "one step
into the future."
There are currently no estimates for
how much Ironside's IronStores platform
will be able to reduce this chain's crime
risks going forward; when using similar
techniques for one law enforcement
agency, Bonnette says, crime fell between
35 percent and 40 percent in the locations
analyzed.
Bonnette estimates an average retailer
using IronStores can achieve a return on
investment in approximately six months.
"Possibly the biggest thing we
learned, I think, is how important it is
for store-level employees to give a great
customer experience and engage their
customers," he says. "If you engage
them, even if you're in a high crime
area, you can have a huge impact on
your bottom line."
Liz Parks is a Union City, N.J.-based writer
with extensive experience reporting on retail,
pharmacy and technology issues.
STORES September 2017 55


http://www.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - September 2017

Editor’s Page
President’s Page
Retail Politics
NRF News
Trends
Retail People
The Favorite 50
RFID Is Ready to Revolutionize the Retail Industry
Playing Their Tune
C2W
Store Operations
Marketing
Payments
How Stonewall Kitchen Boosted Sales and Reengaged Customers
Finance
Store Operations
Inventory Management
Online
How Giant Eagle’s Technology Experiments Reduce Losses From Out-of-Stocks.
Startup Spotlight
Analytics
ORC
Fraud
Stores at 100
POV
Communities
End Cap
STORES Magazine - September 2017 - Intro
STORES Magazine - September 2017 - cover1
STORES Magazine - September 2017 - cover2
STORES Magazine - September 2017 - 3
STORES Magazine - September 2017 - 4
STORES Magazine - September 2017 - 5
STORES Magazine - September 2017 - Editor’s Page
STORES Magazine - September 2017 - 7
STORES Magazine - September 2017 - President’s Page
STORES Magazine - September 2017 - 9
STORES Magazine - September 2017 - Retail Politics
STORES Magazine - September 2017 - NRF News
STORES Magazine - September 2017 - Trends
STORES Magazine - September 2017 - 13
STORES Magazine - September 2017 - 14
STORES Magazine - September 2017 - 15
STORES Magazine - September 2017 - 16
STORES Magazine - September 2017 - Retail People
STORES Magazine - September 2017 - 18
STORES Magazine - September 2017 - The Favorite 50
STORES Magazine - September 2017 - 20
STORES Magazine - September 2017 - 21
STORES Magazine - September 2017 - 22
STORES Magazine - September 2017 - 23
STORES Magazine - September 2017 - 24
STORES Magazine - September 2017 - RFID Is Ready to Revolutionize the Retail Industry
STORES Magazine - September 2017 - 26
STORES Magazine - September 2017 - 27
STORES Magazine - September 2017 - Playing Their Tune
STORES Magazine - September 2017 - 29
STORES Magazine - September 2017 - 30
STORES Magazine - September 2017 - C2W
STORES Magazine - September 2017 - Store Operations
STORES Magazine - September 2017 - 33
STORES Magazine - September 2017 - 34
STORES Magazine - September 2017 - 35
STORES Magazine - September 2017 - Marketing
STORES Magazine - September 2017 - 37
STORES Magazine - September 2017 - Payments
STORES Magazine - September 2017 - 39
STORES Magazine - September 2017 - How Stonewall Kitchen Boosted Sales and Reengaged Customers
STORES Magazine - September 2017 - 41
STORES Magazine - September 2017 - Finance
STORES Magazine - September 2017 - 43
STORES Magazine - September 2017 - Store Operations
STORES Magazine - September 2017 - 45
STORES Magazine - September 2017 - Inventory Management
STORES Magazine - September 2017 - 47
STORES Magazine - September 2017 - Online
STORES Magazine - September 2017 - 49
STORES Magazine - September 2017 - How Giant Eagle’s Technology Experiments Reduce Losses From Out-of-Stocks.
STORES Magazine - September 2017 - 51
STORES Magazine - September 2017 - Startup Spotlight
STORES Magazine - September 2017 - 53
STORES Magazine - September 2017 - Analytics
STORES Magazine - September 2017 - 55
STORES Magazine - September 2017 - 56
STORES Magazine - September 2017 - ORC
STORES Magazine - September 2017 - 58
STORES Magazine - September 2017 - 59
STORES Magazine - September 2017 - Fraud
STORES Magazine - September 2017 - 61
STORES Magazine - September 2017 - Stores at 100
STORES Magazine - September 2017 - 63
STORES Magazine - September 2017 - POV
STORES Magazine - September 2017 - Communities
STORES Magazine - September 2017 - End Cap
STORES Magazine - September 2017 - cover3
STORES Magazine - September 2017 - cover4
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