Stockland's Data Driven Advantage

31 May 2024
Article by
Brooke Lee, General Manager Investment Management Marketing - Stockland Brooke Lee, General Manager Investment Management Marketing

We are increasingly using data to drive strategy development and enhance our customer-centric approach across all elements of our retail business.

By leveraging technology and developing innovative ways to harness our advanced analytics and AI capabilities, we transform raw data into actionable insights. Whether it’s identifying trends, predicting customer behaviour, or measuring the impact of our campaigns, data-driven decision-making is central to our approach to better understanding customer preferences and enabling us to adapt to changing customer needs in real-time.

We use our proprietary data, blend it with external sources, and harness the power of cloud computing, artificial intelligence, and machine learning to convert data into a competitive advantage.

Data-led Leasing

Mecca, Stockland Green Hills, NSWImage: Mecca, Stockland Green Hills NSW

Some of our newer applications are in the early stages, such as predictive modelling in shopping centres. Here, our leasing managers use analysis tools to understand the overall customer journey, experience, and the long-term success of adding particular types of retail stores into specific locations versus other operators.

In response, our Data Science & Insights team built a machine learning algorithm based on spending data which delivers predicted rent, predicted sales and also – more powerfully – a third metric on the overall impact on the centre.

This third metric significantly enhances our decision-making because we are focused on the long-term, sustainable performance of the centre. These hyper-local insights applied at scale across our portfolio give us a competitive advantage.

Customer-centric Segmentation

Another growing opportunity is our proprietary customer segmentation tool that enables us to profile our customers beyond demographics to better understand how they interact with our retail town centres, identifying unmet needs and key drivers of consumer behaviour. We leverage this customer intelligence to guide our decisions.

By consolidating data from various channels, we create a unified view of our customer at a hyper-local level. This comprehensive understanding not only helps us actively maintain and protect high-value segments but, more importantly, allows us to identify and drive increased value out of opportunity segments.

Specifically, this data helps us identify, nurture, and track movements of opportunity segments in real-time to dynamically respond to their needs and maximise their value. By delivering tailored experiences and offers that cater to their unique preferences, we have optimised the retail experience and created memorable moments, fostering a deeper sense of connection and loyalty. This data has empowered us to convert previously untapped opportunity segments residing in the trade area, resulting in the growth of our pool of high-value customers. This ultimately drives key business metrics across our business and for our retail partners.

The sophisticated segmentation tool also allows us to accurately identify the high-value segments (HVS) as the consistent drivers of in-store revenue. This not only validates our strategic focus on these key segments but also provides the data that fuels targeted initiatives to cultivate an even stronger HVS base.

The ability to be agile and adapt in real-time to changing customer needs is crucial in today's market landscape. Our commitment to continuously optimising and maximising the potential of each customer segment using this data-centric customer segmentation tool has become a cornerstone of our success, ensuring we deliver exceptional value and propel long-term growth.

In-house Generative AI

Stockland Point CookImage: Family movie nights, Stockland Point Cook, Vic

We are also leveraging innovative technologies like Generative AI to optimise our understanding of evolving customer needs. We are currently running a proof-of-concept project called SARA – Stockland Automated Research Assistant. SARA is a ChatGPT-like automated assistant that our employees can chat with to ask questions about research conducted by the Customer Insights team into either existing or prospective customers.

Our people can ask questions like “What features do people expect in inclusive playgrounds?” or “Which age demographics are most interested in open-air shopping centres on the Sunshine Coast?”, and SARA can dynamically source and then summarise the findings from our customer research library to support our planning and development of products, services, and amenities that our customers and communities want most.

Optimising Our Omnichannel Offering

We know our customers are increasingly seeking frictionless experiences and our omnichannel response is key to delivering and exceeding customer expectations. Our e-commerce platform, Stockland Marketplace, offers customers the ability to shop with ease and convenience while still connecting them to their local town centre.

A big part of improving our digital experience is leveraging data-driven insights on changing consumer behaviour in their decision-making and purchasing process. Our virtual shopping centre helps our retailers tap into this online market via our platform, reaching more customers and growing their online sales, while ensuring we evolve alongside our customers’ shopping habits.

With features like 24/7 shopping, multi-store shopping, and convenient click-and-collect, it’s the streamlined experience that shoppers want, and a natural extension of our retail centres.

Stockland Marketplace’s range and value proposition resonate with shoppers. With more than 80,000 products from over 60 retailers, it’s a go-to destination that is converting real customer interest into tangible sales for our retailers. 

Stockland MarketplaceImage: Stockland Marketplace