Physical retail is missing the potential of non-shoppers – new technology makes it possible to analyze every customer in the store

In many brick-and-mortar stores, only 20 to 60 percent of visitors convert into actual purchases. But what does brick-and-mortar retailers really know about the vast majority of visitors who leave the store without making a purchase? New technology is now making it possible for physical retail to analyze all customers in the store – even the non-buyers.

Today, brick-and-mortar retail is very good at analyzing purchasing behavior – transactions, loyalty data and shopping carts. But that only gives part of the picture. There is great potential in understanding the entire flow of visitors: who comes in and how long they stay. “If we can understand non-buyers better, an increase in conversion to purchase of just a few percent can mean a lot on the bottom line,” says Christian Bönnelyche at BizLab.

With new AI-based technology – such as BizLab FLOW – can stores nu i realtid få insikter om alla besökare, oavsett om de handlar eller inte. Det handlar om anonymiserad data som visar ålder, kön, tid i butik, reaktioner på budskap och till och med vilka skärmar som genererar högst engagemang. Allt i enlighet med GDPR and AI Regulation.

“Retail media in a physical store cannot only be based on sales data. We can better follow the entire customer journey in a store – even for the 20-60 percent who do not convert,” continues Christian. This is where new competitive advantages and new revenue streams can be found in the pressured retail.”

“Retail Media in store is growing rapidly internationally, but Swedish retail still has the potential to take big steps. Now that the technology is available, it is high time for physical retail to take the next step – and start analyzing every customer encounter, not just every purchase.” concludes Christian Bönnelyche