November 24, 2021

How Video Analytics Improve Retail Industry

Video analytics are more than just security, they can now provide valuable information to retailers.

It is true and commonly thought that the video cameras installed in retail stores are mainly used for security purposes, as to prevent theft and detect habitual shoplifting incidents in real-time. 

But now it’s possible to use the existing installed infrastructure for more than security purposes only. A powerful “two-in-one” tool aimed to tackle the driving factor of the need to analyze and manage data and metrics, in addition to security.

How do video analytics work?

Video Analytics is a technology used to analyze a video for specific data, behavior, or attitudes. The software algorithms are performed on processors within a computer or platform embedded in video cameras, recording devices, or specialized video processing units. 

One of the most common uses is for real-time and post-event video analysis from camera video streams. In this case, the algorithms analyze frame by frame in order to detect abnormal movements, certain objects or different image changes. 

The analytic capabilities offered today are limited only by the creativity of the user and the need presented.

What information do retail video analytics provide?

We all know that what retailers value the most is data and real information. Common retail video analytics are used for loss prevention, inventory management or queue detection. 

Smart video analytics nowadays offer highly valuable information in real-time that allow store managers to react on time, make the right decisions at the right moment and provide them with critical information to determine their business strategy.

In this sense, retailers can benefit from the following information obtained from anonymous face video analytics:

  • People counting: Know the number of visitors in your store in real-time
  • Visitor profiling: See how many adults, children, men or women visit your store
  • Dwell time: Have knowledge of the average time spent by customers inside your store
  • Customer recurrence:  Understand how many times per week, month or year a customer visits your store
  • Occupancy: See the level of occupancy of your business to ensure a healthy environment
  • Conversion rate: Know how many visitors enter your store and leave with a purchase
  • Hot areas: Similar to heat mapping, anonymous face analytics let you gather information of which areas are the most visited or which entrances and exits have greater influx of people

This type of data from retail analytics software is the best ally to improve the buying and selling experience in the retail business. 

Additionally, anonymous face analytics help to improve a store marketing campaigns by providing real-time targeted advertising. Based on demographic information such as age or gender, the advertising displayed varies and adjusts to general group preferences or to show certain offers on specific periods of time (ie. Christmas Sales, Black Friday, Mother’s Day…).

Knowing your customers and how they behave in your store with information collected in an online dashboard, allows the user to have live information which helps reach the optimal store performance. 

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