NEWSLETTER INSIGHTS
Ian Cairns, Head of Sales at TalkTalk Business, talks about AI-powered data capture in retail and how it is changing the game for inner-city stores.
Monitoring customer behavior is not a new concept for retail. Shoppers are already extensively monitored online and people are often willing to accept cookies in order to browse under the watchful eye of tracking technology. Some might argue that behavioral monitoring is so common online that it is to be expected.
However, when shopping in a physical store, many consumers expect a much higher level of privacy. Knowing that a camera is tracking their every move in the store or monitoring the time they spend on a particular item can feel much more intrusive to consumers than a computer system tracking their clicks, even though the data captured may be very similar. There are also important access and security issues to consider. An increase in data requires reliable network solutions that can provide retailers with the accessibility they need while ensuring the security of protecting that data from cybercriminals.
According to research by TalkTalk Business in partnership with Don’t Be Shy, 97% of senior IT decision makers (ITDMs) in retail believe that automated retail – from sensors monitoring in-store temperature and humidity to cashierless shopping – will become the norm. Interestingly, only 30% of front-line staff agree with this sentiment. Whether this is due to a lack of understanding of the potential benefits of new technology or reluctance due to potential cybersecurity risks, it’s important to recognise that smart technology is becoming more commonplace on the high street.
So what does in-store customer analytics look like and how is it changing the in-store shopping experience for both employees and retailers?
3D LiDAR – opening up a new data dimension
One of the most popular tracking technologies currently being used in retail is 3D LiDAR. LiDAR technology originates from the autonomous vehicle industry and offers a variety of exciting possibilities for forward-thinking retailers.
LiDAR works by using a laser to generate pulses of light and measure the time it takes for the light to reflect back to the device. This allows retailers to create accurate 3D maps of their stores and the people moving around them. This allows retailers to track which aisles are most frequently visited, which shelves attract the most attention, and which paths customers take through the store. LiDAR can therefore provide retailers with the raw data they need to identify high and low traffic areas and perform complex analytics on customer behavior.
Compared to traditional video surveillance, 3D LiDAR provides data that is easier to analyze, more accurate, and more secure. The data itself is anonymous and 100% GDPR compliant, making LiDAR a reassuring addition for both security-conscious retailers and customers. With LiDAR, retailers can maintain data privacy and compliance while providing customers and employees with the benefits of technological innovation.
A cashier-free experience
The same 3D LiDAR technology used for in-store surveillance is also key to retail automation, which includes cashierless shopping. Combined with video surveillance and weighted shelves, LiDAR allows retailers to track which items customers select as they shop, and which products they pick up to put down later. Then, when the customer leaves the store, the items in their cart are automatically charged to their preferred payment account and a receipt is sent to their phone.
Customer observation – data collection through eye movements
New technologies also enable innovative retailers to collect valuable data from the customer’s perspective.
Using 3D eye tracking technology combined with a depth sensing camera, retailers can find out what customers are interested in and perform objective analytics of attention at the shelf. The technology can track how long it took customers to focus on a particular product, how many times they looked at it, and how long they looked at it.
Every tiny eye movement tells us something about the customer’s perception of the product. This can help retailers optimize their stores, for example by making key products more visible or organizing shelves to make offers or discounts more visible.
Using 3D eye tracking technology, visual attention can be recorded non-invasively, even from a distance of up to 1.3 m. No glasses, no VR headset, no calibration. The customer can shop as usual, without knowing what huge amounts of behavioral data they are generating.
With great power comes great responsibility
This influx of innovative tracking technologies significantly increases the amount of data retailers can collect about behavior in their stores—from seemingly anonymous footfall to customer payment details. And if the enthusiasm of IT decision makers is any indication, high-tech in-store surveillance through LiDAR cameras and sensors will eventually become commonplace. As a result, retailers will collect more and more data to enable hyper-targeted, predictive analytics.
But behavioral tracking, both online and in-store, raises important questions of data access and security. Any data collected by the technology and the insights it generates are only useful if retailers can access it. As businesses become more dependent on AI insights, it is critical that the supporting infrastructure and platform stability are in place to enable optimal use.
And with so much data being collected, if even a fraction of it is compromised by cybercriminals, the consequences could be dire. Therefore, robust security is essential for any network solution. Using solutions like Secure Access Service Edge (SASE) can help retail companies extend their network and security capabilities. Unified SASE solutions offer a cloud architectural model where network and security function as a single service. They provide comprehensive visibility, proactive insights, and comprehensive control over policy, access, and identity, so companies can ensure that all customer data remains safe and secure.
For a secure and flexible future
If ITDMs are so keen to move into the future of retail, they need to be prepared. In a cloud-based, software-defined network, retailers can securely optimize their stores, improve the customer and employee experience with intelligent technologies, while ensuring that all data captured remains secure. This is a critical foundation for efficiently implementing new technologies that does not compromise customer trust.
The retail sector is well on its way to digital transformation. Companies in this industry must ensure they have the right tools to successfully implement this transformation.
