09 Nov 5 ways how retail shelf monitoring solutions improve business performance
When e-commerce is taking over the world, high street retailers are still searching for ways to up their data analytics efforts. AI retail shelf monitoring solutions provide retailers an opportunity to make smarter decisions about sales, marketing, staffing, security and many more.
AI shelf monitoring solutions provide real time information based on in-store camera footage. Real time item availability information can significantly reduce out of stock rates. Additionally here are five ways AI shelf monitoring analytics can boost business performance.
Right here, Right Now: Solving the Stockout Conundrum
Lack of communication between store employers, lack of resources, overworked staff – all these things contribute to stock-out situations. Research indicates that 50% of stock-outs are caused by inefficient shelf restocking – meaning that the products are present in the store warehouse, but fail to make the ‘last mile’ onto the shelf.
Restocking forecasting often does not take into account peak customer traffic, weather patterns or other aspects that can disrupt customer flow trends. It might be a good way to plan for store orders, but fails the litmus test when shelf restocking is required.
Using in store security cameras AI shelf monitoring solutions monitor stock levels on a particular shelf and can notify employees when stock is running low. The software even notifies employees in advance – while some product items are still on the shelf – ensuring there is enough time for restocking and the customer is never faced with an empty shelf.
Effective Resource Allocation: Human Factors made into Business Processes
It narrows down to employee sense of ownership. If you have motivated accountable employees who cannot walk past an empty shelf – you are in luck! But shelf restocking efficiency even varies between employee shifts.
AI shelf monitoring solutions turn human based factors into business processes. The software notifies a shop assistant on duty when restocking is required. This also eliminates further blamestorming between staff of who was responsible to replenish the shelfs.
AI shelf monitoring solutions also makes the life of retail managers easier. They can monitor product placement in real time. AI shelf analytics monitors planogram compliance and whether items on the shelf are laid out in the same fashion as they are ‘on paper’.
Hot or Cold: Measuring the Sales Temperature of Your Store Outlet
Besides monitoring stock levels, AI retail analytics can also evaluate the ‘sales temperature’ of the store layout. Is this stand based in a cold area often shunned by visitors? Which is the hottest place for my in-store marketing adverts? Was the placement of shelf-stoppers optimal?
By analyzing customer footfall in the store from security camera footage, AI retail analytics can identify cold and hot spots, as well as provide analytics on marketing efficiency – how many customers did stop for a particular sign; or insights about their shelf browsing behavior.
Such insights can be used for data-driven product planograms or insightful in-store marketing.
Increased Customer Satisfaction: Out of Stock, Out of Luck
According to research, 21% to 43% of consumers are more likely to visit a competitor store if they regularly find their favorite products out of stock. Grocery store visitors are not something people like to think about. It should provide as little friction as possible.
Failure to attend to basic customer needs leads into dissatisfaction and – perhaps – a permanent breakup.
Firstly retail AI analytics can help to ensure that products are easy to find and logically laid out. Secondly – reducing stockout situations – will reduce the likelihood of competitor store visits.
Make my Logo Bigger: Efficient Brand Visibility
AI retail analytics provide near real time insights. No visitor polling, no online surveys, no lengthy data analysis or human biases. Everything is presented in a clear cut, Google Analytics style dashboard.
Based on visitor flow data store managers can adapt planograms to particular store layouts. Real time metrics also assist merchandisers in their audit routine. By taking a shelf picture with a dedicated merchant app, the software automatically checks planogram compliance and extracts price information from price labels, reducing the amount of man-hours required and reducing the risk of human errors in data processing.
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