Everyone who owns a business understands the need for video cameras for security purposes, but did you know you can use video as a tool to increase profits?
That’s the scoop in this recent Forbes article, which explores the potential for video analysis use in high-end department stores. However, updated technologies like HD video and high-end software can be used by smaller companies to analyze data like demographic information, placement effectiveness, and monitoring the way people move through the store. This information can be used to alter your store’s interior and specifically target certain demographics with your displays, merchandise, and services.
This acquisition of digital data and use for non-security purposes is called Business Intelligence. Retailers especially are using this information to increase business efficiency and make better decisions on the business front.
Coupling the HD cameras with specialized video-analysis software can show you things like indoor “heat-mapping,” or the movement of customers around your store and the so-called “hot spots” that garner a lot of attention. Not only can you see crowd patterns and areas of high-interest, you can then take that information and alter your store’s interior to either spread customers out or place high-interest items strategically to boost profits.
Grocery stores, for instance, can see who’s coming into their stores and the places they go first. It goes far beyond the traditional methodology of placing the milk at the back of the store to expose your customers to every item between that and the front door. You can see periods of high customer traffic to plan staff schedules, breaks, and lunch hours. You can also switch items out of display cases depending on customer spending habits at different points of the day, like having orange juice and coffee in coolers in the morning hours and moving to soda or beer later in the day.
Consumer tracking is nothing new to online retailers, but having actual customer metrics in a physical location is a relatively new phenomenon. While many stores used to depend on one-way mirrors to check customer behavior, you can depend on the video software to give you real data (including any outliers) so you can make the best decisions for your business.
CMIT Solutions Downtown Seattle can help you implement a video technology and Business Intelligence solution to help your business thrive. Contact us today to find out more.