I recently read an article in The Economist which explained how several of the larger retailers the likes of Best Buy, Wal-Mart, Office Depot, Abercrombie & Fitch, Price Chopper and Toys "R" Us to name just a few, are using elaborate electronic monitoring devices to track and influence the buying behaviors of their customers.
A relatively simple example would be Tesco who, through sensors at the doors, track the volume of people entering and leaving their stores with the goal of managing the opening of additional tills to reduce wait times - a good thing.
Higher up the food chain (so to speak) others retailers are using multi-lens video camera's and high tech audio recording devices to track traffic patterns, observe shopping behaviors, even listen in on their customers. Some go as far as to categorize or segment customers into stereotypical groups based on these observations.
What they do with all this information varies, but you can bet it won't be long before you'll have walk through a maze of shelves and displays to the very far corners of the store to get any of the things you really need, not just the bread and the milk.
Privacy concerns aside, if all of this 'retail surveillance' were to result in a better customer experience (as would appear to be the intent in the case of Tesco's) I'd be all for it. I suspect however, that in the majority of cases, the objective is about getting people to buy more stuff rather than to improve the customer journey.
Personally, I'm not convinced this is the best use of all this expensive equipment. Perhaps if they turned the cameras on themselves for a while, many retailers would learn something about why so many of their customers are getting fed up and choosing to shop elsewhere, or online.
I'd love to hear your views on this emerging practice, but whatever they might be, next time you get an itch while out shopping, keep in mind - big brother is watching.
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Hi Jim,
ReplyDeleteThis is just one more tool in the ever increasingly intrusive exercise of "economic anthropological invasive brainwashing".
It should come as no surprise.
Let me explain:
(i) "economic" because the purpose for all these companies (rightly so of course from their perspective) is to try to sell you not just the products you need but also more products so that they make more profit (obvious, they are commercial enterprises and have to survive economically). Makes sense.
(ii) anthropological (and I hope I have used the right term here) because we are being watched, observed, studied a bit like animals in the wild are - or in a zoo more like.
(iii) invasive: there are more and more ways that our privacy is being eroded. Cameras "everywhere", not just in shops but on roads, streets, trains, buses, taxis - yes, the main reason is given as security and I am not necessarily saying it is wrong, just that it is happening more and more.
And the methods of intrusion are increasing.
You talk here about cameras studying buying patterns, speed with which people go through the store - other methods include:
- databases to study your purchases - each bill is reviewed, especially if it is linked to a loyalty card which has even more information about you and where you live; if nothing else, it says how far you are prepared to travel to buy those particular things; and then they stock more (or less) depending on what sells well or not.
- layouts are changed from time to time to see what effect it has on buying a particular product; we all know about those last minute temptation shelves near the tills.
- the range of choices of a particular product is increased or decreased to see how it affects sales. It was found that having 3 or 4 choices increases sales of a product compared to having 5 or more - less choice encourages more sales, more choices confuse and cause aversion. Who would have thought....
- music (speed and rythm) is carefully chosen / changed depending on the time of day and how many people are in the store to encourage you to stay longer for example (slow music when it's quiet during the day so you linger and have more chances of buying something) - listen next time and try to figure out what the music is "making you do" and then tell me we're not brainwashed or at least very susceptible to suggestion.
(iv) brainwashing: think of the millions of advertisements we are bombarded with everywhere we look: on tv of course (I switch off the sound at least when adverts come on and potter around doing something else), signs /billboards, newspapers and magazines, messages on the radio, posters on bus shelters, not just on the side of buses, and inside, but on the ceilling and the floor too!....
I could go on but that would just make me sound like a ranting conspiracy theorist lunatic - or is it too late for that already.....
I guess what I am trying to say is that we are well past the stage of living our own private lives. Everything is so sophisticated, not least in the "marketing field" whose main objective is to get you to buy more, even of things you don't want.
I could have kept it short and just said, as I did at the beginning: "It should come as no surprise." but where's the fun in that?
What do others think? Is privacy a thing of the past? Do you care if you're on "candid camera"?
My question to all would be if these larger retailers didn’t do whatever they could to increase sales, would we still invest in them? Either through product selection as a consumer (as a previous article in this blog series projected is ranked #1 in importance) or as an investor who buys shares for financial gain? My feeling is “no”.
ReplyDeleteSo it would appear the issue is how this information is gathered. From my observation, someone has made a sale using entrepreneurial skills. Seeing an opportunity to gather otherwise untapped resource and selling it to a larger retailer. It must be believed the cost was outweighed by the benefit in the value to the retailer.
A question one might ask is to what degree is this method unacceptable given a majority of the population has a cellular phone and any new phone has a camera. Some of these have video capability. Unless you are in the store to steal or rob the place, I’m not sure what the concern is. How many news stories include still shots of cameras from the places that have been robbed or worse?
I believe we get worked up far too much with knowing we are being watched. If we conduct ourselves in any environment like someone is watching, regardless of whether we know there is a camera watching or not, do we “act” differently?
It depends upon your definition of privacy. What do you think about the people who: participate in “reality” television shows; or those that watch them? In my opinion, this is a latent acceptance of the reality of “big brother”. You are either watching or being watched.
Whether cameras exist, people still rob stores, shoot guns, or run red lights and the police still go door to door to investigate who saw what. Decorum is what has suffered over the liberties people have taken regardless of whether we were being watched by a person or a camera. What do you suppose would have happened at the Vancouver Airport had the bystander not taken his footage?
Thus, I give full praise to the entrepreneur who realized the opportunity, to the salesperson who sold its value to the retailer, and to the retailer who uses it for security, staff monitoring/training, or to improve my shopping experience. My bet would be they’re more embarrassed by seeing me scratch than I am relieved by scratching.
Ah,that's why I keep getting all these e mail offers to buy 'the pills'.
ReplyDeleteAnother good one Jim. I noted that you were reading the Economist-someone else's copy,(?)and were referring to UK brands. Are you anticipating a visit?
Bestest-from Provence,where they don't understand me either.
Ray
Hi Jim,
ReplyDeleteGood one!
I tend to buy more stuff simply if the shopping is easy but mostly if the staff are super friendly.
Have been travelling in Texas for the last few weeks (for the 1st time) and is the customer experience here ever good! I think it is built into their genes (jeans!) cause it has been great everywhere and fabulous where you can tell they have a cr program.
Hope you are well and enjoying yourself!
Cheers
Jeff
Hi Jim,
ReplyDeleteIt's 1984 all over again!
Thanks for sharing!
Al
Very good! I will have to come up with more ideas for you.
ReplyDeleteJim
Interesting stuff. Wouldn’t it be great if they used the info to have all your shopping waiting for you at the door. I found it spooky that stuff I’d bought in store, appeared on my own favourites list for online shopping.
ReplyDeleteLizzie
I completely agree with you Jim, the retailers should turn the cameras onto themselves. If your business is not doing well, think about what you are doing wrong. Even better, instead of spying on customers to find out ways to brainwash you into buying your product, actively communicate!! As a customer I certainly wouldn't mind if I was asked 'why do you not shop at "insert popular retailer"'
ReplyDeleteI would rather take up 10 minuets of my time answering a questionnaire than be spyed on!!
I also agree with Lizzie, it would be fabulous if they could use all the info to personalise every shoppers experience - excellent!
At the end of the day - there must be a better way other than being a spy!!!
I'll be looking over my shoulder and conscious of what I'm buying the next time I'm in Wal-Mart!
Nikki
p.s It's great that Tesco's got a mention in there - by far one of my favourites!