October 18th, 2021

Heatmaps & Zone Analytics to Drive Conversions

People counting systems allow organizations to keep track of the number of people entering and exiting a specific area at any given time. While it started with a manual clicker (that was prone to human error), people counting and footfall analytics solutions have evolved to do more than just "count people."

Today, these smart sensors help companies better manage their spaces, boost sales, optimize processes, and much more. However, for this post, we'll focus on how heatmaps and zone analytics drive retail conversions.

What Is People Counting?

As mentioned above, people counting solutions track people who walk in or out of an entrance or a specific area. This approach helps organizations better manage the number of people on a particular floor or zone. It also keeps track of the direction they used to enter or exit the premises.

As this technology has evolved considerably powered by the Internet of Things (IoT) and Artificial Intelligence (AI), there's been an explosion in demand across industries. According to ReportLinker, the people counting solutions market is forecasted to be worth as much as $1.4 billion by 2026, growing at a CAGR of 9.4% within five years.

Before these latest innovations, it was impossible to analyze a physical retail space like an online store. However, with the help of smart sensors, we can engage in heat mapping and zone analytics that provide valuable insights.

What is a Heatmap?

Heatmaps are a graphical representation that helps retailers understand how customers use their brick-and-mortar stores. The data generated at these physical stores help retailers better understand how customers browsed, shopped, lingered, and for how long.

It's often a massive advantage when testing display configurations, new floor layouts, promotional displays, digital signage, and more. For example, you can use this retail data to ensure that the most in-demand items are at the front of the store (and easily accessible).

What is Zone Analytics?

Zone analytics solutions take heatmapping to the next level with real-time updates. For example, each time a customer walks from one department to another, you'll receive an update. In this case, it's like when a visitor navigates through website pages.

Key Benefits of Using Heatmaps and Zone Analytics

1. Pinpoint Hot Zones and Dead Zones

When you use zone-based heatmaps, you can quickly visualize how customers engage with products, isles, and displays within the store. Retailers can also combine this data with other unique metrics to identify potential obstacles to conversions.

By identifying dead zones, you can better understand what engages the customers' interests and what doesn't. When compared to hot zones, you can quickly determine what's drawing visitors in and holding their attention.

With this information on their hands, businesses can quickly make changes to create new opportunities and improve overall conversions.

2. Measure the Effectiveness of Promotional Campaigns

As heatmaps and zone analytics provide customer engagement levels at a glance, you can quickly ascertain what marketing promotion worked best and at what location. Whenever faced with low activity, businesses can dive deeper into the data and find actionable solutions. 

For example, you can run A/B tests across locations to determine what connects with your customers. By understanding why a promotion worked, you can make changes to replicate the success of previous campaigns.

3. Enhance Efficiency and Increase Profits

Zone-based heatmapping also helps enterprises boost efficiencies and better serve their customers. In this scenario, you get to divert your resources to where it's most needed. This approach helps eliminate waste while providing enhanced customer experiences. 

For example, you can reassign staff to hot zones to ensure that they assist customers adequately (without making them wait for the next available employee). Over time, you may see patterns that demand the hiring of more staff to better cater to visitors' needs and provide enhanced customer experiences.

When all this comes together, it'll have an impact on your bottom line. For example, you can leverage data to eliminate waste while boosting profits.

Overall, when you leverage heatmaps and zone analytics with people counting solutions, you can make intelligent data-driven decisions. What's more, you can identify new opportunities, solve problems, and make better use of available resources.

▶︎ Are heatmaps and zone analytics right for your business? Request a callback or schedule a commitment-free consultation to find out more.