Precise customer tracking uses IoT-enabled stationary sensors or leverages customers’ mobile phones to track their route through brick and mortar stores. Customer tracking solutions allow stores to optimize floor layout, product positioning, and measure the success of promotions and in-store campaigns.
Brick and mortar stores still account for more than 88 percent of total sales but are handicapped in their knowledge of their customer. Whereas e-commerce stores have access to a potential customer’s browsing history, basic demographics, and past exposure and interaction with ads, physical retailers only collect information at the point of sale – usually through loyalty programs.
Precise customer tracking solutions allow retailers to not only collect information on overall patterns of traffic but analyze individual customer journeys to see where customers dropped off or made the decision to purchase.
Customer tracking solutions consist of either stationary sensors, like cameras, to measure general traffic patterns and gather a headcount of customers in the store or use customer’s smartphones (usually via GPS or Wifi) to track customers’ progress through a store.