Retail Surveillance: Big Data Gold or Consumer Poison?

These days, no one in retail stores bats an eye at surveillance cameras that are clearly designed to prevent theft—those that are discreetly on display over entrances/exits and those positioned behind POS terminals, for example. When cameras are obtrusively placed on or near shelving or hidden in the eyes of mannequins, however, it's not surprising that customers become disgruntled about having their shopping habits surveilled. Nordstrom had some problems a few years ago when they began to track shoppers in store via surveillance. When they put signs up letting shoppers know they were being watched, consumers became irate. They dialed back the cameras and switched to mobile surveilling, using Euclid technology to collect anonymous info from phones connected to store Wi-Fi, essentially making their surveillance invisible (although they did post signs at entrances directing shoppers to opt out if desired by turning off their Wi-Fi). Retailers will likely agree that these tracking measures are no different than cookies and other tracking that takes place online, and many view it as necessary to compete with e-commerce competitors. How do consumers feel about it, though? Will increased surveillance in retail settings drive consumers to online shopping? Customer Reactions to Surveillance It didn't take long for customers to become accustomed to online surveillance in the form of tracking. There's no denying the creepiness of browsing online only to start receiving an onslaught of targeted ads and emails. Shoppers have now come to expect this activity, though, and most are willing to trade some privacy for convenience. Soon, it may be the same with in-store surveillance. Because it's new, customers can be understandably squeamish, but they're becoming used to mobile surveillance pretty quickly. According to Joseph Turow, a professor of communication at the University of Pennsylvania and author of The Aisles Have Eyes , the effect is similar to the metaphor of the frog in the pot—if the water heats slowly to a boil, the frog won't notice. If retail surveillance gradually increases over time, consumers shouldn't become unduly alarmed by it. Benefits of Surveillance Retail stores have not had the same tracking advantages provided by online surveillance, where tracking software delivers data on everything from click-through and funnels to how much time consumers spend on pages, what they look at, and what they purchase (or don't). In-store surveillance is far less invasive in many regards and it allows retailers the opportunity to improve the customer experience. In-store surveillance from smart device tracking and hidden cameras delivers a wealth of information about shoppers, including how often they visit, how they move throughout the store, where they linger, what they miss, and more. In many cases, surveillance can deliver demographic information such as gender and age group, but analytics can also reveal the impact of in-store advertising, whether there are issues with layout, and how to help customers navigate the space. This, in turn, gives retailers clues as to how to streamline store layouts and product offerings, as well as provide consumers with a superior shopping experience. The bottom line is that surveillance is inevitable in retail, and eventually consumers won't bat an eye as the benefits outweigh the perceived drawbacks.