Monitoring customer behavior is nothing new in retail. Online shoppers are routinely tracked and often voluntarily agree to the use of cookies to continue browsing, despite knowing that their every move is being monitored. In fact, tracking online behavior is so ingrained that it is almost expected.
However, in physical stores, many consumers expect a far higher level of privacy. The idea of cameras monitoring their every move or tracking how long they spend on a particular product can feel far more intrusive than having their clicks tracked online, even though the data collected may be quite similar.
In addition, there are critical issues around data access and security. As more and more data is collected, retailers need robust network solutions that ensure access while protecting that information from cyber threats.
According to research conducted by TalkTalk Business in partnership with Don’t Be Shy, 97% of senior IT decision makers (ITDMs) in the retail sector believe that automated retail – which includes everything from environmental sensors to checkout-free shopping – will soon become the norm.
However, only 30% of frontline workers share this view. Whether this discrepancy is due to a lack of awareness of the potential benefits of new technologies or concerns about cybersecurity risks, it is clear that smart technologies are becoming more common on the high street.
What does customer analytics in business involve?
3D LiDAR: a new frontier in data collection
One of the tracking technologies gaining traction in retail is 3D LiDAR. Originally developed for autonomous vehicles, LiDAR offers a wealth of possibilities for innovative retailers.
LiDAR works by emitting laser pulses and measuring the time it takes for the light to bounce back to the device. This process allows retailers to create precise 3D maps of their stores and monitor the movements of people within them. This allows retailers to determine which aisles attract the most traffic, which shelves attract the most attention, and how customers move around the store. LiDAR provides the raw data needed to identify high and low traffic areas and perform detailed analysis of customer behavior.
Compared to traditional video surveillance, 3D LiDAR provides more accurate, easier to interpret and more secure data. The data collected is anonymous and fully GDPR compliant, making LiDAR a reassuring choice for both retailers and customers who care about data privacy. By using LiDAR, retailers can maintain data privacy and compliance while reaping the benefits of technological innovation.
A checkout-free shopping experience
The same 3D LiDAR technology used for in-store surveillance also plays a critical role in retail automation, including cashierless shopping. Combined with video surveillance and weighted shelves, LiDAR allows retailers to track the items customers select and those they take but later return. When the customer leaves the store, the selected items are automatically charged to their preferred payment method and a receipt is sent to their phone.
Eye-tracking technology: insights from every glance
Technological advances also allow forward-thinking retailers to collect valuable data from customers’ eye movements.
By combining 3D eye-tracking technology with a depth-sensing camera, retailers can gain insights into what piques a customer’s interest, providing an unbiased analysis of attention at the shelf. The technology tracks how long it takes customers to focus on a particular product, how often they look, and how long they stare at it.
Every eye movement, no matter how small, reveals something about the customer’s perception of the product. This information can help retailers optimize store layouts, make key products more visible, or arrange shelves to draw attention to special offers.
This 3D eye-tracking technology can unobtrusively record visual attention from up to 4.3 feet (1.3 m) away. No glasses, VR headsets, or calibrations are required—customers can shop as usual, unaware that a wealth of behavioral data is being collected.
The power and responsibility of data collection
The use of innovative tracking technologies is dramatically increasing the amount of data retailers can collect about behavior in their stores, ranging from seemingly anonymous customer counts to detailed payment information. Given the enthusiasm of IT decision makers, it is likely that high-tech in-store surveillance through LiDAR cameras and sensors will become the norm, allowing retailers to collect ever more data and perform hyper-targeted, predictive analytics.
However, behavioral tracking—whether online or in-store—raises important questions about data access and security. Data and the insights it provides are only valuable if retailers can access it effectively. As businesses increasingly rely on AI-powered insights, it is critical to have the necessary infrastructure and platform stability in place to make the most of this data.
Given the massive amounts of data collected, the consequences of even a small data breach can be severe, making strong security measures essential. Using solutions such as Secure Access Service Edge (SASE) can help retail companies extend their network and security capabilities. SASE provides a cloud architectural model that integrates network and security capabilities and provides comprehensive visibility, proactive insights, and comprehensive control over policy, access, and identity, ensuring that customer data remains secure.
Preparing for a secure and flexible future
As ITDMs drive the future of retail, preparation is key. A cloud-based, software-defined network enables retailers to securely optimize their stores and improve both the customer and employee experience with intelligent technologies, while ensuring that the data collected remains protected. This is a critical foundation for adopting new technologies in a way that is both efficient and trustworthy.
The retail sector is rapidly moving towards digital transformation and businesses must ensure they have the right tools to manage this change.
About the author: Ian Cairns is Sales Director at TalkTalk Business, a provider of comprehensive broadband solutions for businesses of all sizes.
“Is the high street ready for in-store customer analytics?” was originally created and published by Retail Insight Network, a GlobalData brand.
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