Retail Foot Traffic Analytics: The Foundation for Data-Driven

***Client name and identifying details have been anonymized for confidentiality.

Retail Foot Traffic Analytics: The Foundation for Data-Driven

• Subject: HB Boutique (A regional chain of 15 mid-to-high-end fashion and accessory stores)
• Industry: Highly Competitive Retail Fashion

The Challenges It Faces

In the fiercely competitive retail landscape, HB Boutique was facing a common challenge which is high foot traffic but stagnant sales. The management team relied on traditional point-of-sale (POS) data and anecdotal observations. Their key metrics were concerning:

• Low Conversion Rate: Despite thousands of people entering the stores each month, only a small percentage made a purchase. They didn’t know why customers weren’t buying.
• Ineffective Marketing Spend: They ran frequent, costly marketing campaigns (online ads, promotions) but had no scientific way to measure the campaigns’ true impact on driving in-store entry or sales beyond overall monthly revenue.
• Sub-Optimal Store Layout: Managers organized displays based on aesthetic appeal rather than proven customer behavior, leading to underutilized high-value spaces.

To solve this, HB Boutique recognized the need for a scientific, data-driven approach to understanding customer behavior and opted to implement a comprehensive People Counting Solution

The Solutions We Deliver

HB Boutique selected a high-accuracy PCS, focusing on the three critical criteria for system selection: Accuracy, Comprehensive Functions, and Data Security. The implementation focused on capturing real-time data across three functional pillars:

1. Accurate People Counting: The People Counting Solution replaced traditional manual clicker counting, providing real-time accuracy and strong anti-interference capabilities to filter out staff movement. Establishing the true “Entry Rate” of marketing campaigns (how many people passing the store actually entered for example) providing a scientific baseline for A/B testing promotions based on traffic generation.

2. Store Heatmap Analysis and Layout Optimization: The system generated detailed heat maps, clearly displaying where customers lingered (dwelling time) and which sections they bypassed.

   >> Heatmap Visualization – Revealed that the highest dwelling time was near the back of the store at a low-margin clearance section, while new, high-margin, full-price accessories near the entrance were receiving minimal attention. This insight triggered a major layout overhaul => The high-margin new arrivals were relocated to the “decompression zone” (right inside the entrance) where initial customer pace slows, leading to increased impulse purchases.

   >> Stopping Locations – Identified “dead zones”, which areas customers consistently walked past without stopping => These zones were re-purposed from static displays into interactive elements (e.g., a digital fitting room mirror), successfully drawing customers deeper into the store.

3. Evaluating Marketing Campaign Effectiveness: The People Counting provided the ability to track the “Entry Rate” (store entries as a percentage of passing traffic) on specific days or hours corresponding to promotional periods. A weekend promotion offering “vnd 50.000 Off any Purchase” generated a high Entry Rate (15%) but only a minor increase in Conversion (13%). A separate “Spend vnd 1.500.000, Get a Free Gift” promotion generated a lower Entry Rate (10%) but resulted in a Conversion Rate of 18% => This showed the first promotion attracted ‘deal hunters’ who rarely converted, while the second attracted highly qualified buyers, allowing HB Boutique to optimize its marketing budget for quality traffic over sheer quantity.

The Results: Performance Growth and Digital Transformation

By leveraging accurate and comprehensive insights from the People Counting Solution, HB Boutique achieved remarkable improvements in operational efficiency and business performance within a short period.

• The conversion rate rose substantially as a result of layout optimization and strategic inventory placement guided by heatmap analysis.
• Marketing ROI also advanced notably after discontinuing campaigns that generated high traffic but low conversions, allowing HB Boutique to focus resources on promotions proven to attract and retain high-value customers.
• Store Layouts were standardized across all 15 locations based on the most effective heatmap patterns, ensuring a consistently enhanced customer shopping experience.

CXVIEW’s AI Video Analytics & Real-time Intelligence Solution proved to be an indispensable tool for HB Boutique, transforming their decision-making process from intuition-based to data-driven, marking a critical step in their digital transformation journey.

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