Retailers get conversion rates wrong because they fail in people counting

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In physical retail stores, one of the most crucial metrics is the visitor-to-buyer conversion rate.

The industry magic number is a 25% conversion rate, and achieving this goal requires accurate data. While retailers have precise purchase data, traditional methods of counting visitors can introduce significant biases.

Methods such as pressure mats, infrared beam counters, and thermal imaging are commonly used in retail for people counting. These techniques, however, fail to account for unique visitors. Issues arise when the same visitor is counted multiple times, staff entries are included in visitor counts, children entering with adults are counted, and men entering women's clothing stores are counted, among other scenarios. 

These biases result in inflated visitor numbers, thereby lowering the conversion rate and affecting store managers' perceived performance.

To mitigate these issues, the adoption of unique people counting based on facial recognition is becoming increasingly popular. This technology is featured at the NRF APAC retail exhibition in Singapore this week.

Corsight AI, a leading vendor of facial intelligence technology, is working with major malls and retail chains worldwide, providing them with accurate and highly segmented footfall analysis. Sunny Kong, VP Sales of Corsight AI Singapore, explains: “Corsight AI's facial intelligence enables retailers to count unique visitors accurately, providing accurate and relevant conversion rates. 

“Our technology distinguishes regular visitors from newcomers, differentiates between men and women, as well as other demographic combinations."

Kong added: "In addition to accurate visitor counting, Corsight AI's technology offers benefits such as effective queue management, watchlist alerting for known threats and suspicious patterns, protection of restricted areas, and enforcement of vendor policies."

Corsight AI’s platform's effectiveness in crowded retail environments is due to its ability to identify specific individuals under various real-world conditions, including low visibility, poor video quality, limited camera angles, distance, motion, facial coverage, and outdoor darkness. Corsight AI's technology, known for its military-grade reliability, ensures consistent performance in these challenging scenarios.

By leveraging facial recognition-based visitor counting, retailers can now obtain a more accurate understanding of their visitor-to-buyer conversion rates, highlighting strong and weak performing stores and ultimately aiding in better store management and improved sales.

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