Who’s there? Why malls should identify their visitor demographics

Malls and shopping centers have immense data potential. From overall foot traffic to conversion of traffic into a specific store, the visitors can teach mall operators about everything from in-mall advert efficiency to the best positioning for their retail tenants. 

A recent analysis piece in Globe St by Barbara Ballinger took an in-depth look at these visitors, and what each individual or group's key identifying factors were. 

The Placer.ai study examined in the Globe St article looked at the three major mall categories; Outlet Malls, Class A Indoor Malls, and Open-Air Lifestyle Centers. Once all data had been reviewed, Ballinger concluded that the open-air lifestyle center had the most consistent foot flow, likely due to the higher-income demographic. 

In order to stay competitive, malls must dive deeper into their visitor data. These insights are vital for mall owners when determining which retail tenants they should go after or which innovative activities they should integrate into their space. 

Managing the Balance 

Understanding your local visitor demographic is key to envisioning a retail space that fits their needs. Not only will it encourage more people to visit your space, but it can optimize the tenancy lease rate and in-mall advertising efficiency, boosting profit in the long term.  

The technology industry understands that - hence the evolution of traffic insight solutions that have joined the market in recent years. 

Spatial Intelligence

One of the possible routes that mall owners can take to improve operations is by implementing software solutions that use machine learning (ML) and artificial intelligence (AI). These can then be used to analyze data provided by the existing hardware like the current CCTV cameras which reduces the CapEx needed to begin to test and learn for these solutions.

In contrast to the early ‘people counters’, with the earliest on record being a mechanical contraption used in the Louvre museum in the 1700s, today’s solutions can collect more specific information about visitors. For example, industry-leading technology provider Brief Cam can classify object classes, behaviors, attributes, and appearance similarity, as well as recognize faces and license plates. Usually employed in the security sector, this software has shown to be useful for operational intelligence, especially in malls where they are reluctant to invest in a hardware overhaul. 

Designed with retail in mind, the greatest type of technology for tracking visitors falls under the heading of ‘spatial intelligence’. Solutions like that created by Pathr.ai and Fyma use similar technology as above (AI and ML) to collect insights on individuals’ movements through the mall as it happens. 

From a leasing perspective, the insights gained from spatial intelligence technology can positively impact both the choice and retention of tenants. By analyzing metrics such as walk-by rate and time spent in stores, mall operators can identify which tenant mix results in maximum traffic and ROI. The blame has traditionally been laid at the mall owners’ doors for reduced sales, even when footfall is steady. However, using visitor-tracking technology, owners can use the data to educate tenants on the causes, leading to the curation of an informed and improved strategy for the long term.

On the operations side, this also helps determine when and where the building is the busiest, helping to employ the right staff in the places they are needed to help determine the success of certain rules and protocols. For example, Deep North whose AI platform can pick up on metrics from age and gender to engagement, queue lengths, and repeat visitors was used often during the COVID-19 pandemic. The technology was valuable for mask detection and social distancing, helping to ensure the safety and wellness of visitors.

And finally, for advertising, it is also useful to determine which advertisements and where they should be placed to optimize their visibility. 

Key Takeaways 

• Knowing more about your mall or property visitor demographic will increase the efficiency of leasing, marketing, and operations.
• Spatial intelligence technology is fundamental to informing a long-term data-focused strategy for property owners.   
• Using existing hardware (CCTV cameras), the software solutions today can get property owners up and running with a lower CapEx investment.

About NextRivet

NextRivet is a hands-on technology consultancy working within the retail ecosystem to bridge the gap between physical and digital experiences.

NextRivet’s focus on digital innovation opportunities, supported by an expansive network of solutions, makes them an ideal source of expertise in this space. NextRivet turns theoretical innovation concepts into results-driven initiatives, enabling clients to bring value to their commercial spaces. 

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