Customer behaviour analysis is becoming an essential part of well-managed retail environments, where data is increasingly used to optimise the flow of movement and product placement. Proper analysis and identification of retail hotspots or blind spots not only helps in inventory management but also enables store owners to effectively plan SKU/rack placement to maximise profits thereby increasing the competitiveness of the business.
Business Use Cases and Applications
There are multiple direct and indirect applications of this experiment.
- Retail Marketing and Analysis – Identify the Hotspots and Blindspots across the entire store for effective rack/sku placement. Strategic placement of advertisements can be made based on the dynamics of the customers visiting a location. For example, a case study by the Los Angeles Times helped the business to answer the question –Why do customers flock to one dress and ignore another? based on heatmap analysis
- Inventory Placement – Based on the frequently visited spots, the appropriate spots to stock products can be considered. One can also determine the right time to take a product off the shelf
- Staff Management – Based on time dependent heatmaps, one can find the busiest time points in the day. This will in turn help in understanding the staffing needs so that the correct resources can be allocated at the right place at the right time
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