Brick and mortar retailers are employing sophisticated software to create a competitive advantage to online competition. Major retail companies have long used camera surveillance for theft prevention. However, Verizon Wireless, Bloomingdales, Cache and Victoria’s Secret have enlisted the help of RetailNext,a comprehensive in-store analytics company.
In-store analytics is a collection of systems working together to organize, analyze and visualize massive amounts of diverse retail data.The camera isn’t just looking for theft anymore; it has added a data tracking analytics arm that takes psychological and behavioral marketing to an entirely different level.
The moment you walk through the front doors of the store, the camera captures your image. It then feeds your image to the algorithm-laden software, which performs facial recognition. If you have been there before, it will access your file and contact information.
Ding — you’ve got mail. This email or text will come from the store and inform you about any promotions happening that day. It can also access your purchasing history or items you have recently been perusingin your online account. If you have recently searched for a black jacket, a customized link of several black jacket styles may appear for you to choose from and purchase.
If you look at your phone when you receive the email, you’ll be offered a free in-store Wi-Fi connection if you agree to let the store track your browsing and online shopping behaviors through your mobile. While the Wi-Fi is tracking you, the camera is still watching you. It monitors where you go first. Is it the men’s or women’s side? Do you stop and look at the new item displays or do you hit the sale rack first? How long do you look at one particular item? Do you try anything on? Of the items you look at or try on, which convert to sales?
After many years of retailers collecting considerable amounts of data, companies like RetailNext have rescued these retailers from the throes of analysis paralysis. Their services convert the data collected from: video surveillance, Wi-Fi tracking, workforce management tools, point of sales systems and credit card transactions, into accessible and meaningful reports for their clients to leverage. Companies now have data mining tools that offer rich content and an instant window into the effects of their choices andhow it impacts their customers and company.
Retailers are not the only ones that see the value of this data. RetailNext has garnered significant capital this year by the likes of Qualcomm Venture, Tyco, Nokia Growth partners, and from heavy hitter American Express, with their capital company AMEX Ventures. These partners and their funds are quickly contributing to the company’s growth in R&D and global expansion. With trends predicting the company will track over 500 million this year, it’s no surprise that RetailNext has recently been awarded Silver winner in the Most Innovative Company of the Year category at the Best in Biz Awards 2014.
Will it be enough to compete with the rapid online shopping growth?
“Many retailers and analysts have suggested the double-digit decreases in store traffic and sales over Black Friday and the Thanksgiving weekend were due to ‘holiday creep’ and the start of holiday promotions earlier in the month,” said Chitra Balasubramanian, head of business analytics at RetailNext. “Store sales were down over the month, and it was more pronounced over the Thanksgiving weekend. However, the data from the monthly Pulse report indicates a more complex retail environment, as performance varied significantly by retailer type and region, and online shopping undeniably made a considerable impact on results.”
www.retailnext.net
