We started HeroFi specifically to give physical retailers the ability to compete more effectively against digital.
Vlad Edelman, Chief Executive Officer of HEROFi loves to race motorcycles and comes from a family of classic musicians. “So, you’re the black sheep of the family because you have a head for business?” “Yeah,” he laughs. Formerly running CBS and ESPN Mobile, and then major ad agencies, Vlad has plenty of experience transforming insights into dollars for large brands. He and his company partner Trent Dethloff, president and co-founder, created the AI HEROFi Guest Experience Platform (GXP) which uses up to the minute data to communicate with retailers in real time through digital signage, mobile apps, tablets, email and loyalty programs. "We aim to fundamentally change the way retail operates. The GXP platform gives retail the ability to blend a broad variety of data sources, react to this data in real time, and do it at the individual store level in an automated and simple way.”
Currently the brand has started working with Westfield Malls using sentiment tracking cameras in the malls to see when people are shopping, who is shopping, at what times and for what. The aim is to support Westfield in multiple ways including giving the retailer the ability to adjust marketing communication almost immediately on digital signage. Example? Let’s say 60% of shoppers at a given time are mothers with their kids. Advertising on kiosks and in stores would change to promote kid friendly brands, like Gymboree. It also works by tracking which retailers are hitting their sales projection goals and immediately promotes them in the mall to drive sales to their stores if sales are down providing new ways for Westfield to support its retailers. It also supports the individual stores, receiving information about customer shopping habits, and immediately offering up promos and information on which items to put at the forefront based on who is shopping at that time. It’s similar to the way Amazon’s AI changes the web page you see and offer up suggestions to fit your current browsing and shopping habits. It's one of the features data shows consumers appreciate most, only now, thanks to HEROFi, physical retailers can now compete with the same kind of up to the minute adaptability.
Yet another feature of HEROFi is its ability to manage online advertising. A well known restaurant booking company worked with the program to strip advertising of certain restaurants when they reach 80% booking and replaces the ads with other restaurants that are similar. This results in less fatigue for consumers with seeing the same things all the time, and allows the company to promote more restaurants.
HEROFi’s biggest client to date has been Buffalo Wild Wings, a chain that has 1300 locations in 8 countries. The platform made a 2.8% increase in sales for the company which translates into millions of dollars across so many locations, all thanks to the programs customizable features. The restaurant used it on a location by location basis to fit the demographics of each space and to plan fun promos tied to local events and beer skus. HEROFi works with real time customer data and sends out suggestions to fit straight to staff registers. No waiting three months to sort through data and try to figure out what worked and what didn't and why with lengthy roll outs of new marketing strategies. Its this immediate feedback loop that differentiates HEROFi from other marketing data programs which collect information that then lands on someone's desk.
While HEROFi is naturally a great fit with restaurants, it could also be the answer the fashion industry needs to turn sales around. Indeed, for the past two years most of all we have heard has been “doomer retail” news about large chains closing stores. It’s an industry plagued by outdated systems both of tracking and delivery, which is a large part of why the industry has been hit hard by online giants. Take the current retail delivery schedule which puts Summer dresses in store in February and Winter Coats in store in July. In the age of fast fashion and instant gratification it’s difficult to understand why the industry is still clinging to such an outdated delivery system but that’s only part of the challenge. “The problem for most physical retailers,” says Vladimir, “is that they aren’t sure how to organize such a complex system. In a chain like Buffalo Wild Wings or Westfield Malls, you’re talking complex technological data stacks that involve tens of thousands of employees at different skill levels. With HEROFi you can see clearly what is selling when, where and from whom.
Both Vlad and Trent believe they can turn that around with their program and both have a deep-seated passion to see retail survive and while the majority of the news is about brands closing shop, Vlad sees a bright future for brick and mortar retail. “83% of the economy is still brick and mortar retail,” he says. Take one of the largest shoe brands that is working with HEROFi to switch from today’s traditional “one size fits all” light boxes, to customized messaging for every store, taking into account different demographics in different parts of Los Angeles. The result? Small profit increases that turn into millions of dollars yearly when implemented for brands with hundreds of locations.
AS for the future of HEROFi? “We see ourselves ultimately being THE platform that supports retail.”
