What Is Presence Analytics and Why Does It Matter

- 16th May 2017


For the decision-maker in charge of a modern business, access to digital data is rarely the problem. Connected customers leave behind a trail of data – from their shopping cart to their purchase history to their social media behavior – everything can be tracked using online cookies.

Physical Blindspot

The difficulty arises, however, when customers leave the digital world and step into the real world. Suddenly, businesses find themselves in a physical blindspot; the visitors walking into most physical spaces remain completely unknown. Business owners need to engage their visitors in real-time and guide them to appropriate outcomes.

Presence Analytics

This is where Presence Analytics plays a transformative role. It is real world location data that makes the intersection of our physical and digital worlds more tangible than ever.

Knowing more about your customers through presence analytics tells you a great deal about their behavior, pointing out opportunities and correlations that can offer you actionable insights you would have difficulty gaining in any other way. This information can be automatically combined with data from POS software, in-store loyalty programs, and CRM systems.

Application of Presence Analytics

In the digital world, it can be very difficult to accurately gauge the effect of an online marketing campaign. Presence analytics provides this capability with ease: you simply examine the time lapse between a customer receiving an email, or seeing an advert on social media, and his next visit. Whether he actually ends up buying a featured product is a different metric, which can productively be combined with loyalty programs or coupons; but just getting someone’s feet in the door already signifies success.

Presence analytics is an easy way to provide the answers to questions such as the following:

  • Kinds of Visitors: Who is Visiting?

Are there customers you see on the premises on a weekly basis, and if so how old are they? Do they shop with credit cards or cash; or do they dwell in a certain department without making a purchase?

  • Dwell Time: How Long Are They Staying?

For small businesses such as fast food outlets, table turnover and order wait time can be KPIs. In larger establishments, it can be very important to know which departments are receiving high levels of foot traffic that stay longer than five minutes, and which aren’t. While CCTV analysis or just a general impression can provide this information, presence analytics offers the same automatically, with a high level of accuracy and already grouped by customer characteristics.

  • Behavior Patterns: How Are They Moving?

If a bottleneck is currently developing in some part of your operations, you can now know about it instantly, or get insight into long-term trends. Do your high-value customers enter the store, buy what they need and leave, or do they spend time browsing? If you are promoting a certain area through physical décor or advertising, how many people are stopping to look, entering or simply passing by? Being alerted that some customer has just spent 20 minutes looking at washing machines, even in real time, is the kind of sales lead that marketers dream about – presence analytics makes this not only possible but automatic.

How Presence Analytics Works

  • Access Points

Whether you install only one or several, the basis of presence analytics is the communication between access points and users’ mobile devices, expressed in terms of how well they can “hear” each other. Wireless devices close to one another receive stronger signals, giving an indication of proximity.

  • Analytical Engine and User Interface

While there may be some value in tracking individuals’ movements, a much deeper understanding of buyer behavior can be obtained by analyzing trends and tendencies. For this reason, the most advanced part of this Wi-Fi technology is not concerned with locating a mobile device, but with helping you recognize patterns.

The presence analytics software package will be able to provide you with detailed reports as well as graphical visualizations without requiring much in the way of user input or technical knowledge. These may then be further refined by visitor characteristics, time periods or other criteria.

Bring Context and Predictability To Your Physical Business

Remaining competitive in these times is no longer just a question of outstanding service and products. It is utterly vital for anyone in the B2C sphere to understand as much as possible about their customers, their needs and what factors influence their actions.

A huge amount of information is available from loyalty programs and even third-party sources, but this is of limited value unless you can tie this to how they actually behave in-store: when they arrive, how long they stay, and when they return. Without this capability, it will seem as if you’re trying to build a puzzle without a picture to tell you where the pieces go.

July’s SaaS tool, Proximity MX digitizes physical spaces and allows you to leverage real-time location data to make better business decisions. If you want to understand and connect with potential customers in your physical premises, click the below button to get a free demo: