Key challenges: why businesses need accurate data
Every day, HoReCa and Retail businesses face systemic problems that can be solved quickly and effectively with video analytics.
As a result, when management has no tools for traffic analysis, decision-making ultimately relies solely on experience, observation, and intuition. But every wrong business decision means lost resources: labor, money, or time. This is exactly why businesses need accurate, fact-based data.
Now that we have identified these recurring systemic problems businesses face, it's clear that solving them usually comes down either to tedious managerial work that takes up most of the working day, or to intuitive decision-making based on historical data. But how exactly can video analytics solve these issues? To understand this, we need to look at how the technology works.
1. Inaccurate traffic counting. Manual headcounts or basic entrance counters provide only a superficial picture. They do not track movement across the floor, distinguish between new and returning guests, calculate visit duration, or identify demographic characteristics like gender and age.
2. Limited understanding of the target audience. Who are your guests? Students or families? Men or women? How often do they return? Answers that are not based on factual data can have an error margin of up to 40–50%. Launching marketing campaigns without this data means wasting money. A clear example is a food hall that launches advertising aimed at students while its core audience consists of office workers aged 30 and over. The result is lost revenue potential, since the 30+ audience has higher purchasing power, can generate higher revenue, and is more likely to become loyal.
3. Blind marketing. The inability to collect accurate traffic data leads to wasted marketing budgets. It is extremely difficult to measure the effectiveness of advertising campaigns without precise data on the number of visitors. As a result, making the right management decision also becomes difficult.
4. Queues and slow service. A long queue in a store might indicate popularity, but more often it means losing up to 15% of customers — people who, for example, are already tired after work, do not want to wait, and leave for competitors. During peak hours, employees cannot cope with the workload, while during quiet periods they stand idle. This imbalance leads to staff burnout, dissatisfied visitors, and unjustified payroll costs. By identifying queue frequency and peak hours, a business can make faster decisions about introducing innovations such as self-service kiosks or scheduling more employees on specific days and time slots.
5. Inefficient staff management. There is often no objective data on team performance: Do shifts start on time? Are service standards followed? Is the workload distributed evenly? Managers spend time on manual oversight instead of strategic development.
6. Difficult scaling. It is hard to monitor compliance with chain standards across every branch without manual checks and automated analytics.