In-Store Tracking: Where the Hotspot Is in the Shop.

How Data Can Be Generated at the Point of Sale to Create Wow Experiences.

It’s All About In-Store Tracking. Customer data is becoming increasingly important in retail. And yes — e-commerce clearly has a head start. Every click, search, and product view is tracked with precision in the online world. As digitalization continues to advance, data becomes even more essential.

But what does data collection look like at the physical point of sale?

We Don’t Even Know How Much We Know.

Let’s put it this way: we often underestimate just how much insight we already have. Modern Instore Tracking  provides retailers with a wide range of KPIs that help evaluate and optimize business performance. Gone are the days of basic people counting using infrared sensors — today's systems come much closer to what online commerce has long mastered: analyzing the full customer journey. And going forward, the focus is shifting from data quantity to data quality.

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The Entire Customer Journey in View.

With in-store tracking solutions, retailers can gather complete movement patterns, path analyses, and even basic customer data — such as estimated age or gender. Several different technologies are available for this. But it’s only when you combine dynamic in-store elements with strategically placed sensors that you gain deep, actionable insights into customer behavior. Here’s a brief overview of the current technologies used in in-store tracking:

Wi-Fi Tracking (Also Known as WiFi Sniffing).

Wireless networks like Wi-Fi constantly exchange data packets with nearby devices — including smartphones — even if those devices are not connected to the network. Routers detect what’s known as the MAC address (Media Access Control) and signal strength. Each MAC address is unique to a device. Based on signal strength, it’s possible to estimate the device’s distance from the router. This allows retailers to track movement patterns within the store and determine how often a customer returns.

Privacy Note — because it matters: With Wi-Fi tracking, MAC addresses must be anonymized immediately by converting them into cryptographic hash values — random strings of numbers that cannot be traced back to the original address.

Image-Based Methods Using Smart Cameras.

Video surveillance is typically used for theft prevention, but it can also offer valuable insights into customer behavior. Algorithms can turn footage into heatmaps that show which store areas receive more or less traffic. Thermal imaging cameras can also be used to identify store hotspots. Facial recognition systems can estimate basic demographics like age or gender. This makes it possible to recognize the audience in front of a Digital Signage screen and deliver targeted content in real time.

Another privacy note:
Especially with analytics systems like these, it’s crucial that no personal identification is possible. All collected data must be fully anonymized.

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AI-Based Tracking.

Our partner Advertima  uses artificial intelligence to analyze head position and body posture (also called “body skeletons”) to infer customer behavior — all without compromising privacy. The algorithm works exclusively with pseudonymized data, never displaying real identities. Each person is seen as a skeleton with 18 joint points, helping the system understand body language and gestures. Each joint is tracked in real time using 2D and 3D coordinates. Additionally, the system distinguishes between 512 different head positions.

This enables a detailed view of the customer journey: What products does a person reach for? How closely do they examine them?

Beacons.

Beacons are small transmitters that can connect smartphones to the POS via Bluetooth. For this to work, users must have the appropriate app installed and agree to share their data. If that’s the case, beacon tracking can offer insights comparable to logged-in user behavior online. However, only a subset of in-store customers can be tracked this way. Beacons can also communicate with digital signage displays. For example, a visitor might receive a personalized offer on their phone while surrounding screens display a branded video from the same campaign. This opens new doors for precise, targeted in-store marketing.

Where the Hotspot Is — And Everything Else You Should Know.

Thanks to these technologies, it’s now easier than ever to identify hotspots and movement patterns within stores — and gain deeper insight into what works and what doesn’t. We can use this knowledge to make better decisions, optimize layouts, and deliver more engaging customer experiences.

At DMS, we’re inspired by these technologies and already applying them to develop solutions that excite and inspire — because that’s exactly what we do. It’s our job to wow.

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