How to increase retail sales bridging IoT, Geospatial and AI
If there’s one thing we can be certain of it is that human behaviour is as tempestuous and unpredictable as the weather itself.
From a retailer’s perspective, the goal is to find exactly what drives these impulses in consumers then isolate the factors affecting their senses to such an extent that it will transform their in-store behaviour and buying decisions.
Fract provides a whirlpool of actionable insights that demonstrate exactly how the environment surrounding consumers influences their mindset. We look at the existing data and its sources, then we analyze what information retailers need to improve their sales rates and efficiency.
By performing this analysis, Fract also helps retailers to identify dependencies of temperature, lighting, Co2 emissions, and humidity on human behavior. With this data, retailers can make changes to instore climate that help maximize consumer comfort, enhance product desirability, and improve buying behaviour.
However, if it turns out consumers buy regardless of temperature, you can trim off a few degrees to stay in the comfort zone but save lots of money across the brand over the years, making this a truly win-win situation.
How it works:
1. We harness Geospatial Analytics, also known as location analytics, to identify patterns in geospatial data within areas surrounding a business. With these analytics, retailers can analyse:
- where key customers live
- where the nearest competitors operate
- where consumer density is at its highest
- what the weather is like within those areas
- multiple other variables.
2. We work with IoT Devices located at various points within a store to record vast pools of data ranging from light and humidity levels to temperature and queue lengths. These IoT sensors can provide a detailed, 360-degree view of the store in real-time. Fract takes the information and compares it with the geospatial data.
3. Our AI-driven Machine Learning algorithm is used to scour through both the Geospatial Analytics and the IoT data to find correlating patterns while filtering out the noise. In these patterns, Fract is able to inform the retailer exactly what causes customers to make these decisions based on the environmental changes surrounding them – from the weather outside to the internal “weather” within the store (temperature, light levels, humidity etc.)
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Fract’s CEO and co-founder, a geospatial technology specialist and retail veteran who, having worked with some of the largest brands in the country, saw firsthand an opportunity to use AI and spatial analytics to help them make smarter business decisions.
Real Life Examples:
For instance, if it’s a hot day and the sun is blazing down on a person, the uncomfortable rise in body temperature coupled with the rapid loss of fluid from sweating is going to trigger that person’s desire to rehydrate.
Now, when the weather is hot outside, that person is much more likely to enter a store with the intention of buying an ice cold can of something like Coca-Cola rather than a steaming hot cappuccino. This is because, as well as wanting to rehydrate themselves, they also want a cold beverage that is going to help lower their body temperature faster. As a result, we see how the external weather affects the buying decisions of the consumer.
However, if that person enters the store and the internal “weather” is drastically different from the weather outside, this rapid shift could have a huge impact on that person’s desires.
Going back the Coca-Cola example mentioned above, if the person entering the store is blasted with ice-cold AC as soon as they walk through the door, their body temperature is immediately lowered and by the time they walk to the back of the store where the coolers are located, the craving for a cold beverage to cool them down will quickly diminish.
Fract Geospatial Data and AI analysis of data from IoT devices in store can predict consumer behaviour and see what adjustments need to be made to the “weather” in-store to ensure it complements the weather outside.
By doing so, a business is able to both maximize sales and improve the customer experience in ways that have never been done before.