How To Increase Your In-Store Conversions Using Video Analytics

In today’s world, a surveillance system is commonly used in the retail sector as a tool to support and aid safety and security. Traditional surveillance systems capture information that is rarely filtered, processed, and utilized.

Although this system is extremely useful, most retail owners do not realize that a large amount of underutilized surveillance data can help retailers with extended capabilities through AI-based video analytics solutions. From improving customer experience to measuring performance, specific events and analyses help retailers increase in-store conversion.

How does video analytics work?

So, how can retailers utilize their previously existing surveillance systems? integrating it with AI-based technology that uses trained deep learning models to detect, identify, and track the number of behavioural and customer-based metrics. AI-based video analytics platform can help retailer owners deep-dive into data-related information to reveal the “Why” behind customer behaviour and what drives or depletes business growth and obtain direct feedback from the team to improve customer experience.

Furthermore, by integrating AIVID AI-based video analytics software into the current surveillance system, data from all cameras can be extracted and analyzed on a central dashboard. This allows retailers to gain richer insight into customer-related insight data.

Video Analytics to increase in-store conversion

Retailers can examine data on an analytics dashboard that simplifies information to make intelligent decisions, which results in increased revenue, using an AI-based video analytic platform. KPI to measure to improve conversion rate

1. In count Analysis with Age and Gender

The first step to improving conversion is understanding the traffic pattern when it is least and when it is most and who are the shoppers – Male, female, and age group..

There are numerous methods for gathering this data. Sensors and manual entry are two of the most popular approaches. The issue with this strategy is that it is difficult to obtain correct data. This is where computer vision may assist. Computer vision is a technique that can count people in a video without human intervention.

Whether you are looking to single out specific demography or seeking to understand the general overview of your customers, you can easily know how many shoppers walked into the store and how many went to the billing counter to understand your in-store conversion. You can We also understand the impact of marketing initiatives like sales, promotional events, and new product line launches w.r.t visitor demographics.

KPI to measure

• People Counting – Using a surveillance system combined with AI, you can understand your shopper traffic, peak times when shopper traffic is higher, the busiest hours of the day, and the Busiest day of the week.
• Customer Segmentation with demographics– Gain a better understanding of your customers’ profiles and deliver a better service according to your visitors’ demographics

O2 which is UK based mobile phone company, has begun to integrate artificial intelligence and computer vision-based video analytics into its stores, resulting in a “smart environment” that analyses traffic patterns using in-store cameras. It has assisted them in analysing their target audience through customer demographics based on age and gender, which has helped them in creating a marketing plan for the organization.

2. Know where your shoppers are moving around in the store

Observing shopper traffic with the naked eye is nearly impossible. This is where video analytics powered by computer vision comes into play. It can help you keep track of people’s movements through CCTV.  Furthermore, an AI-powered video analytics platform can help to measure the following KPIs

• Analyze shopper time spent across areas in-store (Dwell Time)– Know which areas and aisles customers are spending more time, then aligning staff in those spots can help improve conversion.
• Customer journey analysis– Track customer journey path inside the store to  place important marketing material or new products in those areas to improve visibility and conversion.

3. Staff-Customer interaction in store

Are your staff interacting with your customers, taking time to explain the products, and helping them with better options based on their needs? Proper customer support in business is critical to improving the customer experience. If the consumer is not properly assisted, it might have a negative influence on in-store conversion. The better assisted a customer is, the higher the conversion ratio.

Using AI-based video analytics on your CCTV camera, analyse the below KPI to improve conversion.

KPI to measure

1-Assisted v/s unassisted customers – Know if your customers are getting the assistance or if a maximum of your customers’ visits are unassisted. Detect and track the times when customer service staff is not present and the customer is present and waiting for a set amount of time, a real-time notification can be sent to the store manager.

2-Product counter-wise interaction analysis – Check how much time is each counter getting traffic and what is the pattern of customer interaction. This will understand the why and why not behind the purchase. If customers are interacting but not buying, the problem could be the product design or staff behavior, or there could be a situation when a customer is waiting and there is no one to serve them.

• Inactive – No customer and no staff was present
• Idle – When staff was present but no customer
• Waiting – Customer waiting time as no staff was present
• Interaction – How busy the counter was in customer interaction

3-Density Chart – crowd at each counter

Know which sections are getting more rush and their conversion can be understood.

4. Staff Availability at the billing and customer service counter

https://drive.google.com/file/d/1s123YyNKEJtTVpvUVBUH-00n6JoEDmxp/view?usp=sharing

Customer service is a significant aspect of the conversion ratio since it creates an emotional connection between the consumer and seller. It strengthens consumer loyalty towards the company by offering a great customer experience in an engaging atmosphere, which makes them feel important and improves the overall brand image.

You can measure the following KPIs with the aid of AI and machine learning-based video analytics technology.

• Staff presence duration– Detection of the total time spent by the staff in the staff area
• Average engagement/ service time– Get real-time insights on the average time spent on each customer for staff-customer engagement.
• Attended guest count – A predefined threshold for guest count compliance is specified, and if the given threshold is not met, a real-time notification is sent to the manager, which can help to increase staff efficiency and customer experience.
• Unattended guests –Understand the number of guests that got unattended at the billing counter, which may lead them to not buy the product or increase the queue. A real-time alert is sent to the store manager to take the required action.
• Queue Detection at billing counters– Increase or decrease counters by assessing the total number of customers at each counter, minimizing lines and enhancing customer experience.

Queue detection video from AIVID bots page

https://drive.google.com/file/d/1YoQ8GbhpbUU7trc76llD5tCdHZnZcgH-/view?usp=sharing

5. Develop an optimal product placement strategy for your store.

As previously said, an AI-powered video analytics platform can help you track the flow of visitors and foot traffic around the store and help you measure the following KPIs.

• Identify low-traffic regions– Through heatmap detection, you can learn where consumers are engaged and where traffic is low, which can help you modify store layout or product placement categories.
• Identify prime marketing location–  Get in-depth analysis to know which areas have the most traffic. This will assist you in determining the optimal location for any sales or promotional items.

LBX, China’s largest pharmacy chain, utilized an AI-based surveillance system in their store to know if their product location was attracting customers. With the help of this information, they can analyze the promotion strategy and determine whether it is working or needs to be changed.

Conclusion

There is a critical business insight that can be uncovered with the use of video, and multichain retailers can efficiently access and unlock that information using video analytics solutions. A simple 1% increment in billing measuring the above KPI can have a much larger impact on revenue across all stores. Let the ground truth help you decide on more refined strategies and increase conversion.

Interested in improving conversion? Book a free demo for AIVID today.

If you have any queries, talk to our experts, so they can show you the real-time application of this amazing technology and help you improve your store’s security, efficiency, and conversion.