Introduction
Nowadays, retail has become one of the rapidly growing industry verticals evincing digital transformation during the last few years. The introduction of modern technologies such as AI, machine learning, Cloud computing, and IoT has made digital transformation more expedient and profitable. Several innovations in the digital space have been beneficial in remodeling customer shopping experiences and customer expectations. AI (Artificial Intelligence) and VR (Virtual Reality) have proved a boon in the retail business which, in turn, paved the way for video analytics.
Retail store chains have been using video surveillance for security reasons. Conventional video surveillance networks are different from video analytics software. The software system enables automated video surveillance so that grocery stores can centralize video insights to gather relevant intelligence for security purposes. Video data has multiple benefits and applications for different departments. This context sheds a broad light on the major aspects of video analytics systems in retail.
Understanding customer journey: video analytics in retail
In taking data-driven decisions, it is important for gaining real-time data relating to consumer insights and evaluating the customer journey. Retail stores are facing stead-fast competition with ecommerce websites. Important customer analytics that are vital for making significant decisions like operations, marketing, and inventory control are not available with the offline stores.
CCTV video surveillance AI software plays a major role in administering ecommerce traceability into customer inflow. The days are gone when CCTV surveillance in retail stores was restricted to diminish losses as a result of pilferage and employee fraud. Video analytics assist retailers to track customer journeys and recognize their buying behavior. It has helped in revolutionizing the way offline stores gather data relating to customer insights. Creating real-time customer behavior, and traffic patterns, recognizing the very traffic and peak times, diminished waiting time at stores, effective parking etc. are important information that has revolutionized retail operations.
In the case of retail stores and restaurants, utilizing AI-enabled cameras for video surveillance, restaurants can track the time a customer enters there. The metrics offer insights to management in optimizing store performance, staff performance, space management, product selection, and many more.
Retail video analytics
Video Analytics is considered an AI-based analytical solution that operates digital video signals utilizing a unique algorithm to perform security-related functions. It utilizes advanced algorithms and machine learning that can easily automate, monitor, manage and analyze huge volumes of video data. The data analytics digitally analyze various video inputs and has been effectively used as a security solution rendering security to infrastructure. It is a powerful tool for transforming the customer experience, identifying frauds, and creating alarms to avoid losses.
Market analysis of video analytics
When it comes to the global market size, video surveillance statistics show excellent reports. It has been estimated that in 2025, the global video surveillance market is projected to reach 74 billion U.S. dollars, gradually increasing from 45 billion dollars in 2020.
To understand the customer journey, it is relevant to analyze the detailed insights of visited areas of stores. Harnessing AI-enabled video analytics,
- Retailers can recognize heat maps for recognizing the number of visitors at a time.
- With Video Analytics software, store managers are capable of determining the touchpoints where most consumers shop based on the number of people and time they spend within a location.
- Retailers can analyze the timeframe and plan activities accordingly.
In which verticals, do retailers utilize video analytics?
Video analytics is quite beneficial in the different scenarios mentioned below.
- Fraud detection: In order to detect fraud from part of employees in orders, inventories, and statistics, retailers can use Video analytics AI software.
- Motion detection: The AI system’s motion detection assists in controlling theft and illegal admission of customers in ‘no-entry spaces’ retail.
- Heatmaps: Retailers effectively utilize AI-enabled software to optimize store efficiency. By means of implementing video analytics, businesses can quickly determine the way customers can navigate the store.
- Shoplifting: There are times when people pretend to be customers and shoplift products. Video analytics software is beneficial for customer monitoring.
- Tracking facial recognition: For understanding customer behavior, facial recognition plays an important role. It assists retailers in understanding whether the product has a positive, neutral or negative impact on customers.
- Queue management: Queue management algorithms assist in managing queues in addition to foresee the estimated waiting time of each customer.
- Employee performance: Employees can be monitored within a retail working network. Security cameras can be used to preview employee activities and assess their performance.
- License recognition alert: Having a license recognition alert notifies analytics operators in case of any offenders.
What are the relevant features of video analytics?
Herein, in this context, we have given the multiple features of Video analytics.
Placement of products
Product placement is considered an important metric of in-store management. It results in robust engagement and improves the shopping experience. With crowd monitoring, heat maps, retail video analysis formulation, and conversion rates.
Store traffic management
The retail stores remain crowded making it difficult to manage traffic. With the help of video analytics, retail marketers can easily maintain store traffic by identifying the in-store peak patterns.
Monitoring consumer demographics
Video analysis software assists retailers to augment retention and drive more sales by analyzing the consumer’s demographics. This offers retailers an improved understanding of preferences.
Insights to streamline efficiencies
Operations managers often play a significant role in preventing overcrowding. Video analytics AI software can be embedded with the retail system to trigger alerts depending on people counting filters. The system notifies operators about the unsafe number of people occupying a certain space. By identifying crowd hotspots, managers can easily review trend reports and develop contingency plans. Video surveillance data can be easily leveraged by distinct management functions for valuably driving retail chain efficiencies at the time of increasing revenue and advancing customer experience.
Impact of retail analytics software
- The process of enriching customer experience with the help of personalized outreach.
- Increasing conversion ratio by more than 30% through targeted marketing campaigns.
- Acquire actionable insights into tracking productivity & storing performance.
- Analyzing the ROI of marketing campaigns through demography and crowd analysis.
- Comprehending the customer journey with each store for mitigating blockers.
Why choose nextbrain as your retail analytics software?
- Harnessing data intuitively
As a leading software development company, Nextbrain assists you in easily integrating actionable data into business intelligence software. This, in turn, maximizes the usage of data for the right purpose. The retail analytics software assists you in mapping software development trends.
Our professionals have expertise in personalizing several experiences such as increasing sales, driving engagement, and making loyal customers. This will assist you in real time and make decisions for improved conversion and reduced costs.
- Using artificial intelligence to advance transparency
Retail stores at different locations are capable of leveraging the utilization of Artificial Intelligence video analytics. It assists in filtering any discrepancies in the operational process.
- Elevating the traditional store functional
During primordial times, traditional retail stores without online approaches faced difficulties. With modern technology and advanced tools, retail stores can now streamline operational processes. It enhances the customer experience with embellished techies.
- Determining and managing demand
Our experts analyze patterns and apply predictive analytics to offer you a powerful tool for predicting peak demand and acting accordingly. At Nextbrain, our specialists have expertise in managing risks, streamlining operations, and so forth.
Why should retailers implement video analytics?
Video analytics has a major role to play in retail verticals. It assists retailers in adopting predictive analysis and establishing brand loyalty among customers. When retailers can have predictive analysis, they can determine the ideal size of employees on particular days and at specific times. Video analytic solutions can be used to recognize potential threats. It acts as a proactive approach to security by focusing on delivering smart video data solutions and contributing to improving the overall security of an enterprise. Retail chains can be considered a budget-friendly investment.
Video analytics: combined with machine learning, AI & deep learning.
Keeping in view the video analytics system, deep learning and machine learning have a major impact on it. Artificial Intelligence proved to be a significant aspect of retail systems that helps in optimizing customer experience, inventory management, forecasting and many more. AI advanced technology brings near-real-time intelligence to traditional brick-and-mortar stores.
With passing time, technologies have advanced making it easier to identify objects within an image and track motion. AI video analytics software can easily recognize algorithms to track customer journeys, detect walking patterns and analyze navigational rules.
If you are looking forward to empowering flexible logistics networks, then AI video analytics software is the best solution for the retail industry. Digital transformation in retail not only sets the business intelligence but also offers sheer speed.
Digital transformation in retail
Having a plethora of innovative competitors administers shoppers with effective shopping experiences. AI video analytics helps in engaging customers in a personalized and significant manner. It also assists in creating insights from disparate data by filtering to transform it into consumer-first strategies. Physical stores and ecommerce have different sets of rules and approaches.
It is important to note the various reasons responsible for choosing Artificial Intelligence in the retail industry.
Importance of AI in retail
- Creating stunning experience
In order to drive continued interest retailers would require to differentiate between products and consumers' compelling services as well as experiences. Retailers are capable of leading with innovation by integrating predictive analysis to collect market insights.
- Synchronizing offline & online retail
It offers a complete synchronization of approaches and initiatives and provides a seamless customer shopping experience.
- Flexible logistics network
With a view to service a broader prospect of customer demands, retailers can shift their traditional system to a flexible ecosystem offered by AI-enabled technology, assisting retailers to rapidly respond to customer behavior.
Technologies such as AI video analytics enable traditional retailers to effectively transform the way retail stores operate. Therefore, it is an intelligent decision to implement AI video analytics for your business and organization.
How to select the right AI video analytics for your organization?
If you are looking forward to selecting the best AI video analytics software for your business, then you need to consider a few factors. These factors generally involve the specific goals used by the organization for AI video analytics, data security, integration with recent technologies, the kind of user experience they offer and many more.
Final verdict
After a complete observation of the above aspects in a nutshell, it can be said that AI-enabled cameras for retailers can be highly beneficial. Every business that implements a video analytics system acquires the advantage of detailed customer journey insights. Nextbrain offers a strong and cost-effective CCTV monitoring system embedded with a top layer of AI video analytics to offer smarter cameras for retail. As a leading software development company, Nextbrain offers a complete AI-enabled video analytics solution for retailers assisting in the complete digital transformation of business processes. It comprises a core team of developers having many years of expertise in dealing with different project challenges relating to artificial intelligence. Connect with our professionals to know more about AI-enabled video analytics systems.
Saran
September 12, 2023 Author