How Tictag Insight Transformed Operational and Marketing Decisions for Lotte
Client Overview
Industry: Retail
Solution: Tictag Insight (Pilot Deployment)
Key Outcomes:
- Layout redesign opportunity → +18–25% dwell time
- Improved staffing allocation → higher conversion rates
- Data-driven promotional optimisation → enhanced ROI
Background
Lotte, a leading retail group, wanted to trial a solution to better understand customer behaviour and optimise store operations. While promotions drive revenue, existing processes relied on intuition, leaving operational inefficiencies, unmeasured promotional performance, and guesswork in product placement, resulting in missed sales opportunities and suboptimal customer journeys.
Published market reports indicate that retailers typically achieve conversion rates of around 25–30%, though this varies by store, customer type, and merchandising strategy. Lotte sought real-time insights to trial a solution that could help them outperform this benchmark.
Photo: Visual illustration of a Lotte store.
Source: https://www.citiesideal.com/Lotte-Department-Store
Key Challenges
- Manual Staff Reallocation
Phone-based coordination during peak periods caused delays, resulting in lost sales and customer dissatisfaction. - Unknown Promotional Effectiveness
Promotions and high-profile product rotations lacked real-time measurement, creating uncertainty around ROI and inefficient marketing spend. - Layout Optimisation Guesswork
Product placement decisions relied on intuition or vendor agreements, missing opportunities for cross-selling and upselling.
Why Tictag Insight?
Lotte required a solution to capture real-time customer behaviour, quantify promotional ROI, and optimise staffing and merchandising efficiency.
Unique Technology Advantages:
- AI-powered tracking using existing cameras
- Privacy-first, anonymous tracking (no facial recognition)
- Human-in-the-loop validation ensures accurate and reliable AI insights
- Predictive staffing insights for improved peak-hour allocation
- Interactive dashboards delivering actionable recommendations
- IMDA-accredited, demonstrating compliance with data protection standards
By combining AI analytics, human oversight, and regulatory-compliant privacy practices, Tictag Insight delivers trusted insights without compromising customer data.
Implementation
Setup: Camera integration with Tictag IoT gateways across multiple store areas.
Analytics Delivered
- Footfall tracking and demographics (age/gender)
- Customer journey mapping and dwell times
- Queue analysis and service efficiency
- Promotional effectiveness measurement
Workflow
- Capture customer behaviour in-store
- AI processing: detection, tracking, staff exclusion
- Human-in-the-loop validation ensures data accuracy
- Analytics dashboard delivers insights
- Recommendations implemented for operations, merchandising, and marketing
Photo: Lotte Head Office. Source: https://commons.wikimedia.org/wiki/File:Lotte_Head_Office.JPG
Results & Insights
- Operational Efficiency
Predictive staffing models were implemented with dynamic allocation during peak periods. Queue management ensured high conversion rates even during busy periods. - Promotional ROI
Hotspot areas were validated, driving traffic to key displays. Some promotional displays underperformed and were optimised for future campaigns. Strategic staff allocation and placement adjustments improved entry rates. - Merchandising Optimisation
Low-visibility areas underperformed despite strong product appeal. High-dwell premium products were repositioned to increase engagement. Experiential zones extended dwell time and encouraged deeper exploration. Customer journey analysis confirmed a “splash effect,” with key products guiding customers to other areas of interest. - Demographics Analysis
Tictag Insight captures visitor profiles to support informed operational and marketing decisions, using gender and age distributions to guide inclusive strategies.
Conclusion
Through this trial project, Lotte moved from intuition-based decisions to data-driven operational and marketing strategies. By combining AI-powered analytics, human-in-the-loop validation, and privacy-first design, Tictag Insight provided actionable insights that improved staffing efficiency, optimised promotions, and enhanced the in-store experience all without compromising customer privacy.
This trial demonstrates how real-time, tailored customer insights unlock untapped potential in retail environments, driving measurable business impact and supporting strategic growth.
Ready to follow Lotte’s success?
Our AI-driven analytics are designed to adapt to your unique business needs helping you optimise staffing, merchandising, and promotions while keeping customer privacy at the forefront.