How Indoor Positioning Systems Use Big Data To Help Retailers?
When Indoor Positioning Systems first entered the market, we expected that it would revolutionize the way we navigated within buildings and be of immense help to the common man. After all, buildings these days are so huge with complex structures and it is just as easy to get lost indoors as it is outdoors.
Indoor Navigation has not only helped the common people in finding their routes, but also businessmen to promote their business. Retailers are now using Indoor Positioning systems to increase their sales and gain more profits.
How does indoor positioning help retailers?
Firstly, Indoor Positioning Systems have given the big, physical stores a chance to compete with the online stores we have now. With the advent of online shopping, most of us resorted to buying things online because it is much easier finding something in a website than it is to find the same thing in the aisle of a supermarket.
Just like how the search option in an online shopping website will show you the item, Indoor Positioning System applications will be able to tell the shopper where the item he is looking for is.
With this, sales rates have improved considerably. It was found that majority of the shoppers gave up and did not buy the item they were looking for, if it took them a lot of time to find the product in the store. This is natural, because in a huge store with many aisles, it will be hard to find the product.
Indoor Navigation solves this problem by telling the shopper where the particular product is. It also helps him identify what aisles or what parts of the store contains the items that are irrelevant to him. With this, the shopper can avoid wasting time by not going to those particular areas.
Secondly, Indoor Navigation promotes business and advertisement by providing coupons and sale offers to those shoppers within the building who will be interested in those products. This attracts new customers and secures sales.
What is the role of Big Data here?
One of the key things in making a business profitable is understanding consumer behaviour. Shopping patterns of customers can be analysed and detailed reports can be generated. Using this, conclusions can be drawn to improve the business.
For example, there is a difference between providing discounts on cosmetic products to a teenage girl and to an old lady. The former will be attracted by the offer, buy more products than intended and also, is more likely to visit the same store again. The latter, however, will not be interested and will move on.
The effectiveness of sales campaigns and discount offers, the strategies followed by the business, the arrangement of the products in the shelves – all these factors can be analyzed using the data collected from the indoor navigation apps and used to improve the business.
Market research is using the information collected by these apps to identify consumer behaviour, shopping patterns of frequent customers, etc. This data really helps retailers in ways specific to their particular business.
Though retailers were initially hesitant on making their store information public in fear of becoming vulnerable, they have now realized how having a personalized indoor positioning system application from Jibestream can help grow their business. Times are changing and no longer do we have to see an ad on the paper and go looking for the store. You can now decide to shop, enter the store and automatically find all the nearest attractive sales.
In this way, Indoor Positioning Systems makes both shoppers and retailers happy.