What are Retail Analytics solutions?
Retail analytics solutions assist store owners with gathering insights into their shoppers and their purchasing behaviors across locations and channels. They collect data from various touchpoints – including in-store analytics systems, warehouse management systems, POS, ERP, CMS, and so forth – and provide tools that assist retailers in analyzing this data.
With the insights gained from retail analytics solutions, retailers are better at engaging with their customers and meeting their needs and expectations. Once they know who their customers are and how they interact with a particular brand or product, retailers can optimize and target their messaging, optimize store layout, ensure efficient staff allocation, and more.
Full retail analytics solutions often consist of various parts, with in-store audience analytics (often in the form of face analysis software) being a key component. Depending on the exact nature of the solution, other components might include web analytics, infrared sensors, heatmapping software, queue management systems, etc.
How to use Retail Analytics solutions
Evaluating the effect of operational efforts and marketing on in-store sales is complex. Not only has consumer behavior altered, but the retail setting has also speedily advanced. Mall owners and retailers call for retail analytics solutions with accurate data to assist them in making well-informed decisions that positively impact their conversion rates and increase sales.
By implementing retail analytics solutions, retailers can answer key questions, such as:
- Who is my target audience? What is their demographic profile (age, gender, etc.)?
- How many people visit my store, and at what times?
- Which sections of the store are the busiest?
- Which shelves get the most attention from my customers?
- Which products are most and least popular?
- What percentage of shoppers leave my store without making a purchase?
- What is the average length of the checkout queue during peak hours?
To set up a retail analytics solution, you will need suitable hardware and software. The hardware requirements usually include strategically placed cameras, which need to be connected to a computer running the analytics software. Other hardware you might need includes RFID tags and Wi-Fi beacons. The exact specifications, however, will depend on the solution you choose.
What are the benefits of Retail Analytics solutions?
- Understanding your shoppers’ behavior
Retail analytics solutions give retailers in-depth insights into customer behavior. It allows them to gather in-store data, and often also to combine this with data from other sources to understand the bigger picture. Used effectively, analytics can help increase sales, reduce inventory expenses, and retain the best customers. From discovering in-store shopper responses to an item on sale to evaluating a campaign’s impact on sales, retail analytics offer a clear picture of what works and what doesn’t.
- Enabling proximity marketing
Real-time data collected by the analytics solution enables retailers to send out relevant, tailored messaging to their shoppers at the right time and in the right place. Whether using beacons, RFID, face analysis, or a combination of these, a retail analytics solution gathers live data on the demographics of the customers and their movement throughout a store, and sends this data to the CMS, which can, for example, be set up to display specific content on in-store digital screens based on the data coming in.
- Optimizing store layouts
In-store layout and product placement affect sales, and retailers can use in-store analytics to optimize traffic flow and placements to enhance the customer experience and maximize sales. The data can also be used to ensure efficient staff placement within the store and to ensure that checkout queues are kept as short as possible.
- Boosting customer loyalty
By offering essential insights into consumer behavior, retail analytics solutions assist in strengthening the connection between visitors and the store. By acting on these insights, retailers can fully engage their customers and deliver a smooth and satisfying shopping experience. This, in turn, improves same-store sales and customer loyalty.
Sightcorp’s Retail Analytics software
Sightcorp offers audience analytics software for retail and digital signage. The software is AI based, and collects audience data through face analysis. The data that it collects includes:
- People count
- Demographic data (age and gender)
- Audience size (people count)
- Attention time
- Facial expression (smile detector)
This software can be easily integrated with a CMS, VMS, PoS software or reporting dashboard to create an end-to-end solution. Here are some examples of our current integrations: