About the Company
- Company: Kesko.
- Region: Finland.
- Industry: Retail.
- A number of sales objects: 98 supermarkets.
- Implemented solutions: Indoor navigation using ‘smart’ shopping carts.
The Problem
Statistics show that shoppers visit grocery stores an average of six times per month, spending approximately 41 minutes per visit. However, inefficient store navigation and hard-to-find products lead to congestion and frustration for the customer.
Another challenge is personalized advertising. When it’s holidays and weekends, retailers need to inform customers about upcoming sales and offers, but traditional advertising doesn’t fully utilize this opportunity and can’t drive engagement and sales.
Problems that had to be solved:
- In-store navigation is inefficient and shoppers can’t find products quickly.
- Customer congestion is high, overcrowded, and frustrating.
- Low average transaction value means revenue growth is limited.
- No personalized advertising to engage customers.
- A faster and more convenient product search experience is needed.
The Goals of the Solution
The goal was to solve the client’s problems using indoor navigation technology.
To achieve this, Navigine, in collaboration with a Finnish system integrator, undertook the following tasks:
- Develop an intelligent tracking solution for shopping carts.
- Implement a comprehensive retail navigation system that connects shopping carts with the store layout.
- Deploy Bluetooth® LE beacons throughout the supermarket.
- Test the solution’s performance and make necessary adjustments for optimal functionality.
The Solution Offered
To enhance the shopping experience and streamline navigation, our partner integrator developed a personal purchasing assistant that helps customers save time by easily locating products. Navigine contributed by implementing the indoor navigation system and smart notification feature for special offers. Together, we delivered a comprehensive software and hardware solution to address the client’s challenges.
The shopping cart navigation system integrates seamlessly into the shopping experience. Customers receive a standard shopping cart equipped with a tablet. They can enter the name of a dish or upload a shopping list, and the system generates a recipe while mapping out the most efficient route through the store.
The Navigine platform tracks the tablet using Bluetooth® LE beacons installed throughout the supermarket. It then guides shoppers to the right aisles or products using the shortest and most convenient routes. Additionally, the system delivers personalized push notifications about promotions and discounts based on past purchases and real-time consumer behavior analysis.
Key Benefits
For Customers:
- Faster and easier in-store navigation.
- Personalized recommendations and special offers.
- No need for mobile data, GPS, or personal data collection.
For Retailers:
- Improved indoor navigation in large supermarkets.
- Interactive shopping with digital assistance.
- More customer engagement through targeted promotions.
- Advanced customer flow analytics with heat and traffic maps to optimize store layout and marketing.
This solution not only acts as a personal shopping assistant but also provides valuable insights for retailers, ensuring a more efficient and enjoyable shopping experience.
The Solution Implementation
During the project Navigine faced some technical challenges:
1. Securing Tablets Without Compromising Performance
The supermarket administration decided to put the tablets in metal cases attached to the shopping cart handles. However, this design weakened the Bluetooth signal and reduced the system’s ability to receive location data.
2. No Built-in Sensors
The tablets had no motion sensors and no way to count steps or track distance. And their rigid fixation inside the metal case prevented any movement-based measurements.
3. Navigation in a Dense Environment
The supermarket aisle was narrower than the system’s standard accuracy of 2 meters, so it was difficult to determine if the shopper was in one aisle or the next. This level of accuracy was critical for a good navigation experience.
Innovative Solutions
To overcome these challenges, Navigine implemented a series of optimizations:
- Double the number of Bluetooth beacons in the store to strengthen the signal and reduce the metal case interference.
- Advanced positioning algorithms that take into account multiple signal parameters to improve accuracy.
- Dynamic traffic pattern model to refine real-time positioning based on shopper movement and store layout.
- Optimized store digital topology grid to improve tracking precision and reduce navigation errors to 5%.
These optimizations delivered a highly accurate and reliable indoor navigation system, a seamless shopping experience for customers, and valuable traffic insights for retailers.
Results & Impact
A smart shopping cart system is now in 98 supermarkets in Finland; customers have advanced navigation and shopping assistants.
Key Economic Benefits
- More sales through better product visibility and customer engagement.
- 6% increase in average transaction value, shows higher purchase intent.
- Kesko brand awareness, positioning the retailer as a leader in shopping innovation.
Marketing & Advertising Efficiency
- 50% of SmartCart users received and engaged with push notifications about promotions.
- 25% of shoppers followed the recommended routes to advertised products.
- The marketing conversion rate reached 6%, significantly outperforming traditional in-store promotions.
Scalability & Cost Efficiency
The smart cart system was first piloted in select stores in collaboration with Navigine. After optimizing the Bluetooth® Low Energy beacons and fine-tuning the navigation algorithms, retailers could scale the solution themselves.
With a standardized setup across all stores, Kesko can now deploy the system in new stores without extra setup costs, with less time and lower maintenance costs.
