In-Store Consumer Analytics: A Key Technology for Brick ... · PDF fileHowever, new in-store...
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1 February 1, 2018 Deborah Weinswig, Managing Director, FGRT [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2018 The Fung Group. All rights reserved. In-Store Consumer Analytics: A Key Technology for Brick- and-Mortar Stores Deborah Weinswig Managing Director, FGRT [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 In-store consumer analytics technologies are providing store- based retailers with instruments to track and analyze shoppers’ behaviors to a level that is comparable to what has been available for years in e-commerce. In this report, we: 1) Define in-store retail consumer analytics and show how the adoption of the technology is important for retailers that aim to provide a tailored and frictionless in-store shopping experience. 2) Illustrate selected examples of in-store retail consumer analytics technologies that retailers can adopt to track and analyze consumer behavior in brick-and-mortar outlets. 3) Show how the in-store retail consumer analytics market is expected to see rapid growth in the future, as more and more retailers adopt the technology for their brick-and- mortar operations.
Transcript of In-Store Consumer Analytics: A Key Technology for Brick ... · PDF fileHowever, new in-store...
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February1,2018
DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
In-Store Consumer Analytics: A Key
Technology for Brick-and-Mortar Stores
Deborah Weinswig
Managing Director,
FGRT
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
In-storeconsumeranalyticstechnologiesareprovidingstore-basedretailerswithinstrumentstotrackandanalyzeshoppers’behaviorstoalevelthatiscomparabletowhathasbeenavailableforyearsine-commerce.Inthisreport,we:
1) Definein-storeretailconsumeranalyticsandshowhowtheadoptionofthetechnologyisimportantforretailersthataimtoprovideatailoredandfrictionlessin-storeshoppingexperience.
2) Illustrateselectedexamplesofin-storeretailconsumeranalyticstechnologiesthatretailerscanadopttotrackandanalyzeconsumerbehaviorinbrick-and-mortaroutlets.
3) Showhowthein-storeretailconsumeranalyticsmarketisexpectedtoseerapidgrowthinthefuture,asmoreandmoreretailersadoptthetechnologyfortheirbrick-and-mortaroperations.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
IntroductionE-commercehaslonggiftedretailersanabundanceofdataonconsumers’visiting,browsingandbuyingbehaviour.However,physicalstoreshavetraditionallybeena“datablackhole”forretailers,withlimitedrobustorgranulardataonin-storevisitorsandshopperbehaviourbeyondtraditionalfootfallmeasurementservices.However,newin-storeretailconsumeranalyticstechnologiesareprovidingstore-basedretailerswithwaystotrackandanalyzeshoppers’behaviorstoalevelthatiscomparabletowhatisavailableine-commerce.
Theabilitytogatherandanalyzeinformationaboutin-storeconsumerbehaviorenablesretailerstoofferabrick-and-mortarshoppingexperiencethatcancompetewithonlineshoppingintermsofpersonalizationandthereductionoffrictionpointsinthecustomerjourney.
Inthisreport,wedefinein-storeretailconsumeranalyticsandshowcaseseveralexamplesofthetechnologythatdifferenttechfirmshavedevisedtotrackconsumerbehaviorin-store.Finally,weshowhowthemarketforin-storeretailconsumeranalyticsisexpectedtoseerapidexpansioninthefutureasmoreandmoreretailersembracethetechnology.
DefiningIn-StoreConsumerAnalyticsTechnologiesIn-storeconsumeranalyticstechnologiesmeasure,trackandanalyzeconsumers’activitiesinbrick-and-mortarshoppingenvironments—bothindividualstoresandshoppingcenters.Trackingoccursthroughsensorsthatgatherinformationaboutwherevisitorsgoandhowlongtheyspendinthestoreorshoppingcenter.
Analysiscaninformstorestrategiesandbeusedtooptimizeprocessessuchasstorelayout,marketingandsalesoperations.Moreover,theinformationcanbeusedtounderstandthespecificshoppingpatternsandpreferencesofindividualconsumerstoprovideamoretargetedandpersonalizedshoppingexperience.
Weidentifytwomaincategoriesoftechnologiesusedtogatherconsumer’sdata:
1) Countingtechnologies:Enableretailerstotrackin-storefootfall,typicallythroughsensor-baseddevicesincludingvideo,thermalandlaser.
2) Trackingtechnologies:Enableretailerstotrackthebehaviorofstorevisitors,typicallybytrackingdevicessuchassmartphones.
In-storeretailconsumeranalyticsdeployedbyretailersisoftenacombinationoftechnologies,forexamplebydeployingbothsensorsandcameras,orbothWi-FiandBeacons.Below,wenoteseveralexamplesofthetechnologiesthatdifferenttechfirmshavedevisedtotrackcustomersin-store.
SensorsandComputerVision:HoxtonAnalytics,AmazonGoHoxtonAnalyticsusescamerastocountfootfallandcomputervisiontocaptureconsumers’characteristics.Sensorsandcamerasareplacedatgroundlevelsothattheinformationcaptureddoesnotcompromisepeople’sprivacy.Bycountingpeoplewalkingintothestoreandobserving
Physicalstoreshavetraditionallybeena“datablackhole”forretailers.
HoxtonAnalyticsusescamerastocountfootfallandcomputervisiontocaptureconsumers’characteristics.
In-storeconsumeranalyticstechnologiesmeasure,trackandanalyzeconsumers’activitiesinbrick-and-mortarstoreenvironments.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
theirshoes,thetechnologyprovidesanaccuratecountoffootfalltrafficandconsumerinsight,suchasvisitors’gender.
Source:HoxtonAnalytics
AcombinationofsensorsandcomputervisionisalsodeployedinAmazon’scheckout-freephysicalstoreAmazonGo.Thecompanyhasnotdisclosedmuchinformationaboutthetechnology,butithasnotedthatthestoredeployscomputervision,sensorfusionanddeeplearning,thesametypesoftechnologiesusedinself-drivingcars.Thetechnologydetectswhichproductstheshopperpicksupandwhichonesarereturnedtotheshelves,andkeepstrackoftheminthecustomer’svirtualcart.
AmazonGoopenedtothepubliconJanuary22,2018,inSeattle,followingayear-longtestingperiodthatbeganinDecember2016,duringwhichtimethestorewasaccessibleonlytoAmazonemployees.Pressreportsfollowingtheopeningofthestorehaveemphasizedthelargenumberofcamerastrackingcustomersandtheirbehavior,implyingthatvideomonitoring,ratherthanshelfsensortechnology,istheprincipalmeansthroughwhichAmazonGotrackswhatitemsvisitorshavechosen.
Source:Amazon.com
AcombinationofsensorsandcomputervisionisalsodeployedinAmazon’scheckout-freephysicalstoreAmazonGo.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
Wi-FiandBluetoothBeaconAnalytics:WalkbaseFinnishtechfirmWalkbaseisaproviderofin-storeretailconsumeranalyticstechnologythatdetectsWi-FiandBluetoothBeaconsignalstotrackconsumersinstore.
Wi-FianalyticsrelyonthesignalthatWi-Fi-enableddevices—suchassmartphones—continuallytransmittodetectavailablenetworks.Thesignalenablessensorstodetectthedeviceandtogatherinformationaboutthemovementoftheconsumerbrowsingthestore.ThismakesitpossibleforretailersadoptingWi-Fianalyticstechnologytoanalyzetheconsumer’svisitinstoreandgatherinformationsuchaswheretheywentandwheremostoftheirtimewasspent.
Source:Walkbase.com
IONSensors,DeepLearningandBlockchainTechnology:NucleusVisionTechfirmNucleusVisioncombinesblockchainanddeeplearningwithreal-timeproprietaryInternetofThings(IoT)sensorstoprovideretailerswithatechnologythatenablesin-storecustomeridentificationandpersonalization.
RetailersinstallNucleusVisionIoTsensors,whichidentifycustomersastheyenterthestoreandsenddatatotheblockchain,wherethispieceofinformationandothercustomerdatasuchaspreviouspurchasesandtheirbrowsinghistoryandpreferencesontheretailer’swebsiteisanonymouslystored.Thecompany’sdeeplearningplatformgleansthedatafromtheblockchaintocreateandinformeachcustomer’sprofile,whichcanbeaccessedbystoreassociatestoenablethemtoprovideapersonalizedshoppingexperience.NucleusVisionaimstoprovideaneasy-to-adopttechnologytoretailers,withoutrelyingonWi-Fi,Bluetoothorfacialrecognitiontooperate,butsolelyonthecompany’sproprietarysensorstechnology,deeplearningplatformandblockchain.
Wi-FianalyticsrelyonthesignalthatWi-Fi-enableddevices—suchassmartphonesthatvisitorscarrywiththem—continuallytransmittodetectavailablenetworks.
NucleusVisioncombinesblockchainanddeeplearningwithreal-timeproprietaryInternetofThings(IoT)sensors.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
Source:NucleusVision
Below,weshowfurtherexamplesoftrackingandanalyticstechnologiesthatretailerscandeployinbrick-and-mortarenvironments.
Figure1.OtherSelectedExamplesofIn-StoreRetailConsumerAnalyticsTechnologies
Technology Description SelectedProviders
VisionAnalytics
Thetechnologyunderstandsconsumerbehaviorthroughtheanalysisofimagesbyusingartificialintelligence(AI)anddeeplearningsoftware.
StanfordComputerVisionLab,Modcam,Seematics
3DStereoVideoAnalytics
Thetechnologyusesstereosensors—high-resolutioncamerasandprocessorsforathree-dimensionalview—toenhancetheaccuracyofthedatagathered.
Brickstream,Xovis,Hella,ShopperTrak
ThermalImaging
Thetechnologydetectsheatandisusedtocreateheat-mapsthatdepictthecustomer’sbehaviorin-store.
Irisys
TimeofFlight Lasersensorsareusedtotrackshoppers’movementsbydetectingthetimeoflightbetweenthesensorandtheobjects.
BEAHelma
Source:behavioranalyticsretail.com/FGRT
Outlook:RapidGrowthExpectedforIn-StoreRetailConsumerAnalyticsThemarketforin-storeretailconsumeranalyticstechnologiesisexpectedtogrowrapidlyinthefutureasmoreandmoreretailersandshopping-centerownersadoptin-storetrackingandanalyticstechnologyintheirphysicalstores.
• Inparticular,weexpectmoreretailerswillwanttoclosethegapbetweentheinsightstheyenjoyintoconsumerbehaviouronlineandtheviewtheyhaveofconsumerbehaviourintheirphysicalstores.
Themarketforin-storeretailconsumeranalyticstechnologiesisexpectedtogrowrapidlyinthefuture.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
• Real-estatefirmswillalsolikelyseektogainfurtherinsightsintohowconsumersareusingphysicalretailenvironments,andgainamoredetailedviewofwhoisvisitingtheirshoppingcenters.
Theoutlookforthevideoanalyticsmarketisoneindicatorofthegrowthprospectsforthebroaderin-storeretailconsumeranalyticscategory,giventhatsmartcameras,softwareandservicesareusedforin-storeanalytics.Revenueforvideoanalyticsappliedtotheretailindustryisexpectedtogrowatacompoundannualrate(CAGR)of18%globallyduringtheperiod2017–2022,accordingtomarketintelligencefirmTractica.
Figure2.GlobalVideoAnalyticsMarketValueAppliedtotheRetailSector(USDMil.)
Videoanalyticsincludesmartcameras,softwareandservices.Source:TracticaCurrently,noparticulartechnologylooksdestinedtoprevailoverothers.Retailersandretailreal-estateownerswilllikelycontinuetouseacombinationofdifferenttechnologiesthatspanIoT,Bluetooth,Beaconandvideototrackandanalyzein-storeconsumerbehavior.
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February1,2018
DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comFilippoBattainiAnalyst
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