Indoor Analytics – uses in retail

Dec 5, 2014

Indoor Analytics
The advantage of online retail in terms of the customer journey is weakening. Indoor Analytics make it possible to learn more about where customers go at stores as well – a special anonymization process guarantees that the recorded information is not related to individuals in any way.
Getting to know your customers better, finding out what they want and having an overview of the entire customer journey from the time they enter the store until they make their purchase – these scenarios are now also possible at physical retail stores and can be realized through Indoor Analytics solutions. These solutions anonymize and record customer flows in the store and then use big data applications to provide informative analyses that can be used in management decisions.
Customers themselves bring the main ingredient for using this type of customer flow study with them. Smartphones provide the signals needed to track where people go in closed spaces. All you need to record this information is the right radio sensor technology like a WiFi infrastructure. All it takes to equip a typical discounter market with Indoor Analytics for customer flow analyses are three WiFi access points. Of course, each customer has the option to refrain from using Indoor Analytics by switching off the WiFi feature on their phone while they are in the store. This is always pointed out very transparently and clearly.

All data used by Indoor Analytics is anonymized and then analyzed

All information recorded by Indoor Analytics is immediately anonymized and encrypted on a secure, on-site server in compliance with data privacy laws. That means the system does not have access to personal information, so the customer's right to privacy is not infringed.
The data is then sent to the T-Systems data center in Göppingen. That is where the most important step for the retailer takes place. The Indoor Analytics data is analyzed using big data analytics software.
The results of the Indoor Analytics analysis show where customers go in the store as well as customer flows without any recognizable personal information. The analysis also indicates visitor numbers. The retailer can access the results and analyses via a web dashboard. They can also access an API (application programing interface) to incorporate the analyses into their business intelligence systems.

Indoor Analytics display length of stay and customer flows on a heat map

Indoor Analytics currently provide information on visitor numbers, also based on which areas they visit, as well as their length of stay. An indoor map depicts customer flows and a heat map shows where they spend the most time.
That way retailers can identify places in the store that are not getting enough attention, making it possible to optimize the store layout as well as customer access to products. The latter enables more effective placement of indoor promotions and lets retailers see how effective they are. The solution can also be used for human resources planning, which can be optimized considerably by analyzing customer numbers in different departments.