Five ways enhanced sensors enable machine learning in retail environments

Today, retailers are at a crossroads. Consumer behaviors and expectations are evolving like never before. Shoppers have become more connected, more informed and more empowered. They’ve also become less loyal, with 26% reporting that they’ve stopped buying from a specific brand in the last year. Therefore, it’s critical for retailers to use data to engage consumers in new and highly personalized ways and then offer customized goods and unique services that today’s customers want — and expect. 

But how can brick-and-mortar retailers gather the data to compete with their online counterparts? And how can they customize and improve their customers’ experiences, both in-store and digitally?

One answer may be the use of sensor technology combined with artificial intelligence (AI) and machine learning (ML).

The eye in the sky

Research shows that RFID tags can improve inventory accuracy by more than 25%, which can increase sales due to fewer out-of-stock items. They can also reduce shrinkage due to theft by up to 2%.  However, retail sensors for AI can do more. Much more. In fact, sensors can do everything from monitoring customers’ eye movements to collecting data on how long people have viewed aisles, shelves or even specific products. 

What’s more, infrared sensors can help retailers track customers’ behavior in real time and then notify staff where and when they’re needed. Retailers can use AI/ML to analyze the data collected by sensors to uncover insights on shopper preferences. This kind of advanced AI can be invaluable to retailers, helping them adjust merchandise displays and store layouts to optimize the flow of customer traffic and help generate more sales. 

Here are five ways sensors can help retailers drive growth now and well into the future:

1. Tracking inventory: Collecting and analyzing consumer data can be critical in making better decisions on everything from supply chains to shelf design and store layout. For example, sensors can help track sales of specific products in real-time. This can help retailers keep more of the right items in stock while minimizing excess inventory. In addition, deploying sensors can help reduce the manual and often labor-intensive process of cataloging inventory while virtually eliminating the typical disruption such activities cause to daily operations. 
2. Product performance: Sensors give retailers the power to uncover business insights based on more accurate data, allowing retailers to analyze and improve product performance. For example, sensors can help to uncover the relationship between product location and sales, giving retailers insights to optimize shelf space allocation.
3. Facial recognition: Sensors can track the frequency of customer visits, helping retailers deliver the kinds of customized experiences that online-only retailers simply can’t match. Facial recognition can also provide an extra source of security data for retail loss prevention, helping to identify known thieves. 
4. Predictive analysis: AI can help teams plan more effective marketing campaigns and deliver enhanced customer experiences. For example, geo-fencing technology allows retailers to send a personalized offer to a shopper’s smartphone the moment they enter a retail location. Retailers can test this approach by presenting the offer to selected customers and then use the results to predict and inform the success of future marketing campaigns.
5. Solving problems before they’re even problems: With the right sensor mix, AI can help retailers find answers to questions they might not have asked. If there’s a decrease in sales of a particular product or across a department, it could take months to notice using traditional data analysis. But with sensor data retailers can get actionable insights much faster. Here’s an example: A point-of-sale display could be disrupting the flow of customer foot traffic — a problem that may be identified and remedied much faster with the help of sensor data.

Information is everywhere. The ability to harness that data with sensors — and act on it — can offer retailers a real business advantage. But as with most technologies, sensors are only as effective as the networks that power them.

Spectrum Enterprise can help

We can help organizations put sensors to work for them to drive growth and achieve objectives, Managed Network Edge with sensors, delivered over the Cisco Meraki platform, monitors and analyzes an array of information from your premises. The highly integrable, simple and reliable solution is purpose-made to help you solve business challenges and maximize efficiencies.

Spectrum Enterprise experts work with retailers of all sizes to build modern networks to support advanced data capture and storage. With dedicated fiber internet and cloud connectivity solutions to retailers to help break down data silos, retailers have the ability to understand and respond to customers faster, while optimizing supply chains. 

Delivering technology that powers business-critical functions such as in-person and e-commerce payments, inventory, HR systems and more, Spectrum Enterprise provides 24/7/365 support, because any network disruption — either in-store or online — can impact customer satisfaction, sales and profitability. 

One key element of network infrastructure is security. When systems are down, organizations are more vulnerable to a data breach. It’s important for every industry, but in retail, data loss can be an even greater challenge. Retailers wouldn’t want security footage getting out to the public or worse — having professional hackers get access to proprietary business data, customer payment records or other sensitive information that could have value to competitors or buyers on the dark web. 

Learn more about how the Spectrum Enterprise portfolio of managed network services can enhance your retail space technologies and IT capabilities.