Client Overview
The client is a prominent supermarket that sought to deepen its understanding of customer behaviours within its store, not just at the point of sale but throughout the entire in-store experience. They aimed to leverage technology to capture the nuances of how customers interact with products, navigate the store and make decisions.
Objectives
- Gain detailed insights into customer shopping behaviours using advanced video analytics.
- Optimize store layout and product placement based on real-time data.
- Enhance overall customer experience and increase sales.
Challenges
Without the aid of technology, capturing the nuances of shopper behaviour – their movements throughout the store, product interactions, and decision-making processes – remained a significant challenge.
Solutions
The client used in-store cameras and video analytics to gain valuable insights into customer behaviour. This technology goes beyond traditional CCTV, capturing data on:
- Product Interactions: What products do customers touch or linger over?
- Customer Flow: Where do customers walk within the store? Which areas receive high foot traffic (represented by red in heat maps)? Are there areas with low engagement (green or blue on heat maps)?
- Customer Attention: What attracts customers’ attention within the store?
This rich data empowered the client to optimize their store layouts. By analyzing heat maps, they could strategically place merchandise in high-traffic areas to maximize visibility and sales. Additionally, understanding customer behaviour helped identify potential pricing issues.
Results/benefits
Implementing in-store video analytics with heat maps delivered a significant return on investment (ROI) for retailers.
- Increased Sales: Data-driven insights into customer behaviour led to strategic product placement and merchandising decisions. In the first year after the implementation of the video analytics solution, the client’s revenue increased by 10%.
- Enhanced Customer Experience: Understanding customer flow patterns allows for optimizing store layout to create a more intuitive and enjoyable shopping experience, leading to increased customer satisfaction and repeat visits.
- Improved Inventory Management: By analyzing customer engagement with specific products, the retailer can make data-driven decisions about inventory levels and promotions, potentially minimizing stockouts and optimizing product mix.
Streamlined Operations: Heat maps can reveal areas with low customer traffic, potentially allowing for staff redeployment to enhance customer service in high-traffic areas or optimize operational efficiency.
