Heat maps, virtual assistants: Malls ramp up AI use to track business

Technology helps them in knowing footfall and where visitors are flocking to

Shopping malls keen to know the number of visitors they have, where they are flocking and what services they need are increasingly adopting artificial intelligence (AI), say real estate industry executives and consultants.

"AI is used to predict their (customer) preferences, design layout, and in conjunction with the demographics of the catchment area, even come up with a mall's brand mix," said Ajendra Singh, vice-president (sales and marketing) at Spectrum Metro Mall in Noida.

Uddhav Poddar, managing director at Bhumika Group, a mall developer in Rajasthan, said his company has installed scanners in its properties and the data collected is used to understand customers’ shopping.

"We also plan to install a footfall scanner at a designated location to enhance our understanding of customer traffic and behaviour," said Poddar.

Heat maps tell malls where their customers are concentrated by giving a colour-coded graphical representation of an activity in a particular area. The information is used to set up kiosks and fix rents for retailers.

According to Abhishek Sharma, director (retail agency) at Knight Frank India, AI tools help malls in knowing many customers they have and shops they visit.

"Today, we continue to leverage AI, not just as a tool, but as an integral component of our operational practices. Our current focus is on harnessing AI to delve deeper into understanding and predicting customer behaviour," said Ravinder Choudhary, vice-president at Vegas Mall in Dwarka in western Delhi.

Retailers in malls are using AI too: For managing inventory and automating tasks like writing product descriptions.

"AI-powered chatbots serve as virtual assistants, addressing customer inquiries regarding product details, size availability, and stock levels," said Anshuman Magazine, chairman and chief executive officer (India, South-East Asia, Middle East & Africa) at real estate consultancy CBRE.

Chatbots track past purchases and browsing behaviour to recommend products to customers. In trial rooms of clothing shops, customers can use AI-powered smart mirrors to know how a dress will look on them.

"We are also leveraging omni-channel strategies, including email and SMS/WhatsApp marketing, along with in-app options in association with brands to increase footfall," said Singh.

Malls will make more use of AI as the technology spreads. "Data analysis and heat maps specific to age and gender metrics, peak periods, holiday/sale season etc has the potential to provide multi-faceted insights," said Vimal Nadar, senior director and head of Research at Colliers India.

"For mall operators and developers, we can expect heightened technology-driven real estate planning and decision-making in the future," he said.