Customer behaviour monitoring isn’t a new concept in the retail industry – especially online. Shoppers are monitored extensively online, but most are happy to click the cookie consent and continue browsing under the ever-watchful eye of tracking technology.

Behaviour monitoring has become so commonplace online, it's almost expected. But when it comes to retail experiences IRL, it’s a slightly different story.

When people enter a physical store, there’s a higher expectation of privacy. Customers want to enjoy browsing at leisure, without feeling like their every move is being monitored. Knowing that a hidden camera may be tracking your route around the store, or measuring how long you linger in a certain area feels more intrusive than tracking your clickstream – even though the data being collected is very similar. 

And then there’s the question of data security. Many customer monitoring systems collect huge swathes of data to feed retail analytics – from seemingly anonymous footfall counts to individual customer payment details. Other analytics software uses video surveillance, facial analysis or 3D eye-tracking to gain insight into customer behaviour. According to Forbes, the amount of data collected by retailers is anticipated to exceed 175 zettabytes by 2025 – and with so much data being collected, the complications from even a fraction of that being compromised by cyber criminals is severe. 

Not all monitoring systems require opt-in to comply with GDPR, so customers aren’t being reassured that their data – particularly biometrics and payment details – is anonymised and secure. But despite these security concerns, in-store monitoring is becoming increasingly prevalent. 

So what does in-store customer analysis look like today? And is it really the future of retail?

To find out, we conducted a large-scale survey into how UK retail workers view the future of their industry. We surveyed 100 senior IT decision makers (ITDMs) and 200 frontline workers to discover their predictions. 

Most of the ITDMs we surveyed think in-store monitoring presents an opportunity too good to ignore. In fact, 88% of ITDMs believe their business should consider implementing in-store tracking, compared to just 45% of frontline employees. 

Unlocking a new dimension of data

One of today’s most popular tracking technologies is 3D LiDAR. Born out of the autonomous vehicle industry, LiDAR technology is opening up a world of possible use cases for forward-thinking retailers. 

LiDAR generates pulses of light using a laser and measures the time it takes for that light to be reflected back to the device. This enables retailers to create an accurate 3D map of their store – and the people moving within it. Retailers can track which isles are visited most, which shelves attract the most attention, and what paths customers take through the store. LiDAR provides the raw data retailers need to identify high-traffic and low-traffic areas, and perform a complex analysis of customer behaviour. 

Compared to traditional video surveillance, 3D LiDAR technology brings a new dimension of data – that’s easier to analyse, more accurate and more secure. The data itself is anonymous and 100% GDPR-compliant, making LiDAR an easier sell to security-concerned retailers and customers alike.

Enabling retail analytics and automation 

The same 3D LiDAR technology used for in-store monitoring is also key to retail automation. When paired with video surveillance and weighted shelves, LiDAR allows retailers to track which items are chosen by the customer as they shop – and which products are picked up, only to be put down later. Then, when the customer leaves the store, the items in their basket are automatically debited from their preferred payment account and a receipt is sent to their phone. 

But is automation the future of retail? The ITDMs we surveyed seem to think so. 97% of ITDMs believe automated retail will become the norm, compared to just 30% of frontline workers, who believe till-free shopping presents too many staffing or security issues. 

Gazing from afar

Innovative retailers are observing their customers in increasingly intimate ways. Not by physically interacting with them, but by gazing into their customers’ eyes. 

3D eye-tracking technology, paired with a depth-sensing camera, helps retailers understand what customers are interested in, and gather unbiased shelf-attention analytics. The technology can track how long it took customers to focus on a specific product, the number of times they looked at it, and how long they spent gazing. 

Each tiny eye movement tells a story about the customer’s perception of the product, and can help retailers configure their stores in the most effective way – such as making key products more visible or organising shelves to increase attention around offers or discounts. 

3D eye-tracking technology can remotely record visual attention from as far as 1.3m (4.3ft) away in a non-intrusive manner. No glasses. No VR headset. No calibration. The customer can shop as normal, perfectly unaware of the vast amounts of behaviour data they’re generating, solely through their eyes. 

With great power comes great responsibility 

The influx of innovative tracking technology has and significantly increased the amount of data retailers can collect on in-store behaviour. And if the enthusiasm from our ITDM respondents is any indication, high-tech in-store monitoring will eventually become commonplace. Retailers will capture ever more data to enable hyper-targeted, predictive analytics. But all this data comes with responsibility. 

Handling large amounts of customer data brings network security implications to ensure it’s kept out of hacker’s hands. Retailers also need the connectivity to handle the increased demand that tracking technology places on their network. If ITDMs are as keen to step into the future of retail as they say they are, they need to get prepared.

A better network for a brighter future

At TalkTalk Business, we provide retailers with the network they need to effectively collect and analyse in-store customer behaviour.

Your network is designed around you. You’ll have the speed, flexibility and rock-solid resilience you need to provide exceptional customer experiences – and the data you need to future-proof your business.

Learn more about the future of retail – and how businesses are striking a balance between collecting and protecting in-store customer data. Read our exclusive whitepaper: The Future of Retail: Automated or People-Powered? 

About the research

In September 2022, we commissioned a survey by Vansorn Bourne of 300 senior IT decision-makers and frontline employees in business sizes ranging from 1,000-2,999 employees to those with 5,000 or more.