Retail Intelligence - Improving Sales Through CCTV Systems

If you think security is the primary reason stores put up CCTV systems, think again. They are not there to watch shoplifters; they are there to count people.

Security Versus Sales

The British bed store, Dreams, had CCTV systems installed for two reasons: the first, marketing; the second, security.

Dreams' use video surveillance shows a strong trend surfacing in the market in recent years. Stores put up CCTV systems not so much to prevent losses, but to increase sales. This is a logical move. While shoplifters and negligent employees cause stores to lose money, these losses are minimal compared to loss of potential earnings.

Monitoring Foot Traffic

Foot traffic is important to business owners and managers, and this is where CCTV systems come in. Cameras map store traffic. They show patterns of movement from department to department, from floor to floor. They show, for example, where customers are most likely to pass to get to Department X after exiting Department Z.

In malls, areas with the heaviest foot traffic are the costliest to rent. In stores, the same areas are where latest or the most steeply-priced products are displayed. Dreams knew this, and thus had CCTV systems mounted.

Why Count People?

Stores count visitors to monitor sales. A decline in foot traffic could only mean one thing: reduced sales. After all, with fewer people entering stores, fewer purchases would be made. CCTV systems, used together with need-specific software, are able to alert owners and managers to decreases in visitor density. These people could, in turn, take corrective action.

Uses of CCTV Systems in Marketing

1. Pinpointing desirable location

Cameras can show which areas draw the most visits from people. Decision-makers can use this data to evaluate the impact of decoration themes or adjust rent in relation to traffic value.

2. Revealing the hold factor

The "hold" factor is the ability of any merchandise or store area to make customers stay. CCTV systems can provide answers to questions like:

a) How long do customers stay inside one section of the store?

b) Which area or item do they take the most time to look at?

3. Optimizing promotional spending

CCTV systems help store owners and managers identify areas where advertisements would have the most impact. Marketing teams can then use this information to plan store layout and promotional strategies.

4. Evaluating stock levels

CCTV systems can, at a glance, reveal empty shelves or fast-thinning supplies. This is particularly useful in stores so huge it will take weeks to conduct a complete inventory of items sold and unsold.

5. Improving customer service

Data captured by CCTV systems tell key personnel how many customers flock to the store during certain times of the day. This data is very useful in designating how many employees to assign and where. Frequently, long lines at cash registers frustrate shoppers and cause them to do their buying elsewhere. Identifying prime selling hours and areas will help stores keep their valued clients.

Each shopper that walks through the door represents potential profit. With the right CCTV systems and software, store owners and managers can convert more and more profit potential into actual sale. What businessman could say no to that?

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