Market Updates

Crowd Analytics - To Save the Retail Stores

December, 2018


Worldwide retail stores are facing tough competition from e-commerce companies, as it is extremely challenging to evade their low pricing and customer-friendly options such as customized products and better customer engagement options offered through various digital platforms.

How can retail stores survive

E-commerce companies lack the real touch and feel offered in retail stores. For the segments like perfumes, apparels, optical and beauty care store, customer experience plays an important role in their buying decisions and here retail stores have that benefit to provide high experience to customers. Buyers like to hang out, try, touch, and smell real products before making a buying decision and this experience of buying is something which an e-commerce company cannot capture. For offering a better experience to buyers, retailers need to have a deeper understanding of their customers and with crowd analytics, now retailers can enhance their in-store experience.

How crowd analytics can help retailers

Crowd analytics is the process of analysing the data collected through reviewing the natural movement of customers in the retail stores. High-resolution cameras and sensors are used for capturing real-time feed about in-store customer presence and behaviour. The data collected is then further analysed to estimate the total crowd density by defining total area of retail store and then breaking it into certain number of blocks.

As per the “Pedestrian movement theory of John J. Fruin”, when the crowd density is higher, the crowd flow decreases. Thus, when the crowd flow is less in certain areas, that shows that the area is drawing the attention of the buyers and can help retailers in understanding the crowd behaviour pattern. Thus, retail stores can make insightful decisions using crowd analytics and increase their efficiency and profits by providing better customer experience.

– Sonam Chawla,
Research Analyst,
Infoholic Research