Predictive Analytics: Why People Counting is Driving the Growth of Retail

retail growth - Predictive Analytics: Why People Counting is Driving the Growth of Retail

Predictive analytics utilizes statistical techniques and data to examine current trends to make predictions. These analytics are essential in various industries, including retail, as businesses need to attract more potential customers and grow sales.

 

People counting technology is an effective way to do just that.

 

To learn more, keep reading to learn why people counting is driving retail growth and needs to be an essential part of your predictive analytics.

What is “people counting”?

People counting refers to electronic devices that are used in retail stores, shopping malls, metro stations, airports, museums and libraries, and theaters to measure the number of people crossing into or walking away from specific entrances or passageways.

 

These devices can take the form of smart-flooring technologies, infrared beams, thermal imaging systems, and other video counters utilizing advanced machine learning algorithms.

 

This type of technology is gaining traction worldwide as it enables business owners to obtain a significant amount of data that can be used to streamline and improve operational practices.

 

For example, a retail store traffic counter will be utilized to assess conversion rates and customer experience, which facilitates greater insight into optimal staffing allocation, store design, and in-store sales strategy.

 

For brick and mortar retailers wanting to compete with e-commerce retail, people counting is essential and can deliver tremendous benefits to your bottom line.

Which people counting systems are useful in retail?

While there are various people counting systems available, some specific ones bring the most value to retail stores.

 

As mentioned earlier, a retail store traffic counter is one of the most beneficial people counting systems for brick-and-mortar stores. This technology is the most effective way to define your shop’s sales opportunity, which is likely more substantial than you think. Not to mention that sales opportunity is continually changing due to seasonality, trends, and your marketing (to name a few), so it is vital to be continuously measuring footfall traffic.

 

In shopping malls, Ai Based  3D Stereoscopic work particularly well as they are unobtrusive, yet accurate. This system utilizes Ai Algorithm  technology, which gathers changes in the space’s temperature to determine traffic volume. (this is a very old technology and not accurate in hot weather in middle east)

 

Alternatively, stereo people counters collect movements in real-time and are adaptable to a wide range of environments. In addition to measuring the number of individuals, this system also tracks customer dwell time within a specified zone and the entire customer journey path.

What is the link between people counting and sales opportunity?

If your company has a physical space, then you need to be counting customer traffic to gather a more thorough understanding of what is happening in your business. With the data collected through your people counting system, you will be able to make better-informed decisions moving forward.

 

One of the most important benefits of people counting is that it uses your traffic count to determine your sales opportunity. For example, if 100 people enter your shop one day, then your sales opportunity is 100. Without tracking how many people visit, you aren’t going to have a thorough understanding of sales opportunities.

 

In many cases, retailers only record transaction counts, which only includes those who entered the store and made a purchase. As this data neglects to include non-buyers (those who entered, looked around, and left without making a transaction), it leaves out an essential group. Without analyzing non-buyers, you are missing out on an opportunity to capture and learn from lost sales.

 

Furthermore, this data also enables you to determine your store’s conversion rate, meaning the number of people who entered the store and bought something compared to the traffic opportunity.

 

For example, if on a given day your shop had 50 transactions and total store traffic was 200, your conversion rate would be 25 percent (50/200 = .25). Knowing your conversion rate means knowing how well you are actually doing, and it provides a critical metric to assist you in sales growth.

How does people counting affect the in-store experience?

By analyzing the data produced by people counting systems, you can see which products or offerings have the highest-traffic. This can help you recognize categories that are in high demand, which displays are most effective, and whether other in-store marketing strategies are working.

 

From there, you can ensure that you are organizing the store in a way that engages customers and merchandising products appealingly.

 

The data will reveal how frequently employees interact with customers and their response to those who enter the space.

 

Not only will this allow you to see which employees are providing the most exceptional customer experience, but it will also demonstrate which customer engagement strategies improve your conversion rate. For example, if you have consistent data showing customers lingering in the store, it might be due to inattentive sales personnel.

 

The data will also show whether your retail space is staffed adequately or whether you need to make changes to suit customer flow. If you have retail spaces in multiple locations, analytics can compare and contrast each of the store performances.

How do I implement people counting?

At this point, it is probably clear how essential people counting is to any retail store that wants to sustain itself. The systems necessary for this type of predictive analytics are relatively low-cost, especially when considering the potential ROI they bring.

 

Suppose you want to obtain valuable visitor analytics, optimize sales and conversions, measure new advertising strategies’ effectiveness, and improve in-store operations. In that case, you need to implement a people counting system. All retail stores, no matter their size, can benefit.

 

When looking at potential people counting systems, it is imperative that you work with a leading solution provider in business intelligence and retail analytics. These experts have the knowledge necessary to implement people counting systems that are effective, reliable, and personalized for your retail store’s needs.

 

Additionally, they are at the forefront of people counting technology, ensuring that your implemented system will be the best-in-class.

 

Has your retail store implemented people counting systems? If so, what have you seen are the benefits? If not, what is holding you back from taking your business to the next level? Let us know your thoughts and any relevant insights in the comments below!

 

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