Product placement is probably one of the most important factors that impact retail sales and is closely tied to the store layout.
While planograms offer the template to slot products in the shelf space, real-time data-driven decisions can help retailers maximize sales by aligning shelf space to customer preferences and other factors that drive purchases such as the weather or local events.
Video analytics can be a game-changer in giving retailers instant visibility on potential product placement issues and identifying opportunities to maximize basket size.
Some of the insights retail video analytics can uncover to improve product placements include:
- Hotspots around display units and shelves to precisely identify the products that customers are looking at or interacting with. This allows the retailers to identify products that need to be relocated to boost sales or change the assortment around the hotspots to promote cross-sell.
- Retailers can look at dwell time data to understand what might be causing customers to interact with the products in shelves with high dwell times and find a correlation to other factors such as time of the day, packaging, marketing campaigns (in-store or online), or any other factor that might be driving increased dwell time.
Retailers with data on the performance of shelf space across product categories and departments can optimize the store layout and display units or even change the design of the store to offer most product categories the best possible exposure to customers.
Video analytics can empower local teams to make store layout decisions based on real-time data while ensuring planogram compliance or even using data as evidence to change the planogram.
Here is a heatmap view from video analytics that precisely highlights the product displays that attracted maximum customer interactions or engagement. Using this data in conjunction with sales data or marketing campaign calendar can uncover challenges and opportunities with the product placement tactics or even store layout changes to improve performance.