What is store analysis achieved with AI cameras?

*Percentage of EC in the entire product sales market

For several years now, it has been whispered that “EC business is threatening the sales of brick-and-mortar stores,” and many media outlets have reported that problems such as showrooming are becoming more serious in stores. However, since more than 96% of product purchases are still made in physical stores, the ability to carry their own products in physical stores and innovative in-store experiences will become increasingly important for retail companies. It is considered.

This article introduces “store analysis using AI cameras” to realize an innovative purchasing experience in physical stores. Please refer to this guide if you are facing issues such as sluggish sales at physical stores or customized customer service.

What is “store analysis using AI camera”?

AI ( Artificial Intelligence) is “artificial intelligence,” and it is a technology that has permeated our personal lives and business to the point that there is no need to explain it. Recently, the use of AI in business has become popular, and computers that autonomously process information are making it possible to improve business efficiency and collect and analyze information at a level that is impossible for humans.

What does it mean to perform store analysis using a camera equipped with this AI? First, let’s organize the information that the AI ​​camera can process as follows.

<Example of information that can be processed by AI camera>

• Number of store visitors
• Number of people leaving stores
• Traffic situation in front of the store
• Number of display viewers
• Number of customers who converted to store entry
• In-store crowding situation
• Average store stay time
• In-store lead line
• Visitor attributes (gender, age)
• Number of new customers
• Number of repeat customers
• Number of stays in the area
• Area residence time
• Product purchase rate

In addition to this, there are various other types of information that can be processed by AI cameras. Furthermore, by linking the AI ​​camera with the POS system, it is possible to integrate information such as “who bought what?”, expanding the range of store analysis.

Why is store analysis necessary?

What is the reason for the rapid expansion of the e-commerce market to the point where it threatens physical stores? Many people may think that the spread of smartphones has made it easier to connect to the Internet, making it possible to enjoy shopping without having to visit a physical store. But there is another reason.

That is “customized customer service” based on behavioral history analysis within e-commerce sites and on the Internet. On an e-commerce site, you can obtain all the information about who viewed what, where, for how long, and what products they subsequently purchased. Of course, as long as personal information is not specified. This information is actively used to improve the e-commerce site, and by providing information, products and services optimized for each user, we have greatly improved the convenience of shopping.

In terms of “satisfying your desire to purchase” and “enjoying shopping,” it is far more advantageous to go to a physical store, select the products, and think about this and that before making a purchase. However, because there is a limit to the information that can be collected at physical stores, it is not possible to create a shopping environment that is optimized for each customer like on e-commerce sites. This is the fundamental reason why the e-commerce market has grown rapidly.In contrast, the convenience of physical stores has declined, leading to problems such as showrooming.

Additionally, in recent years, disruptive innovations have been occurring that are transforming e-commerce businesses into real businesses. It is still fresh in our minds when the world’s largest e-commerce company, Amazon.com, opened a smart store (automated and unmanned physical store) and became a hot topic.

In order for modern retail companies to overturn this situation and develop measures to encourage people to visit physical stores again, they must analyze all kinds of information in the same way as e-commerce sites do, and develop products that are optimized for each user.・Providing services is very important.

What information can be obtained through store analysis?

By installing AI cameras and IoT sensors and performing store analysis based on the data obtained, retail companies can obtain information of unprecedented value. Until now, POS systems could only obtain information such as “Which products are being purchased and how many?”, but what kind of information can be obtained by performing store analysis?

1. Attribute information of product purchasers and non-purchasers

Previously, POS systems could only provide information such as “Which products and how many items were purchased?” However, in stores equipped with AI cameras, information such as the gender and age of people who purchased items and those who did not purchase them was obtained. information can be obtained.

Furthermore, at apparel stores, it is possible to check the clothing of both purchasers and non-purchasers, so it is a great advantage to be able to understand the hobbies and tastes of customers.

2. Repeat customers and their trends

What kind of customer base will convert to repeat customers? If you know this information, you can effectively develop measures to create repeat customers. It’s not difficult if you do a store analysis.

3. Products that customers are interested in

AI cameras installed on product shelves make it possible to understand what products customers are interested in. It will also be possible to identify products that people are interested in but do not sell well, making it possible to create an optimized product lineup for each store.

4. Tips for optimal conductor design

Conductor design is important in order to have customers move around the store efficiently and increase their desire to purchase. If a store is equipped with an AI camera, it will be possible to analyze information about the routes that visitors take to move around the store and obtain hints for optimal route design.

5. Displays that should be displayed in front of stores

Among the displays displayed in front of stores, such as digital signage, which ones are most interesting to passersby? This can also be easily grasped with an AI camera. You can also prepare multiple designs and conduct A/B tests.

6. Campaigns with high effectiveness

By checking the store visit rate and repeat customer rate for each campaign, you can easily understand which campaigns are most effective for your store. You can also find out in what order you should run your campaigns to attract more customers.

7. When to focus human resources

If you know trends such as the length of time customers visit the store and the time when repeat customers concentrate on visiting the store, you can know when to concentrate human resources. This can significantly increase cost efficiency while increasing labor productivity.

What do you think? Store analysis using AI cameras allows you to obtain all kinds of information in addition to the above information by combining various data. Up until now, technology related to information analysis has been separated from e-commerce business, but now it has finally become possible to perform advanced information analysis in physical stores. Now may be the time to bring back customers who have gone to other e-commerce stores and revitalize your physical stores.